At these inputs, withdrawals plus the stated fee equal an estimated 5.00% of the starting balance in year one.
This calculator performs simple first-year arithmetic. It does not model taxes, inflation, market returns, sequence-of-returns risk, fee tiers, or future sustainability. The withdrawal amount is shown before taxes. Fees may be billed differently by provider.
How the calculation works
The estimated annual withdrawal equals the starting portfolio multiplied by the selected withdrawal rate. Monthly income divides that result by 12. The target balance divides your desired annual income by the selected rate. Annual fees equal the starting balance multiplied by the fee percentage.
Do not treat 4% as a guarantee
A withdrawal rate is a planning assumption. Sustainability depends on the portfolio, time horizon, inflation, market sequence, taxes, fees, and the ability to adjust spending. A temporary withdrawal for a business-owner sabbatical is also different from a withdrawal expected to last for life.
Questions this calculator should trigger
- Is the advisory fee included inside or added on top of the withdrawal target?
- How much of the withdrawal may be taxable?
- Would the income come from taxable, Roth, or tax-deferred accounts?
- Can income be reduced after a difficult market year?
- What amount would cover one meaningful expense rather than the entire lifestyle?
General education only; individual investment, tax, and legal decisions require advice based on your circumstances.
Understand your result
Use the complete portfolio-income guide, planning after a business sale, business-owner cash-flow planning to put the result in context.
Compare the other tools: Advisor Fee Calculator, 1% AUM Cost Calculator, Tax Strategy Gap Check. You can also browse the tools hub or take the Financial Advisor Scorecard.
