Rule of 25 calculator

25 times annual spending is the 4% rule written as a nest egg. 28× and 33× are the same identity at 3.6% and 3.0% — the range early retirees actually need.

The calculator

Nest egg$1,500,000
Implied withdrawal rate4.0%

$60,000 × 25 = $1,500,000, which is a 4.0% first-year withdrawal.

Why 25, 28 or 33

25× is 4%. Bengen's 1994 result was a 30-year window. Retiring at 40 is closer to 50 years. The 4% post walks the age-specific case; this page is the identity.

Assumptions

No returns, no fees — it is a multiple, not a projection. For a path, use how long will my money last.

Frequently asked questions

What is the rule of 25?
A restatement of the 4% rule: if you withdraw 4% in year one, you need 25 times annual spending invested. $60,000 a year is $1.5 million.
Should early retirees use 25× or more?
A 50-year retirement is not a 30-year one. Many early-retirement plans use 28× to 33× (about 3.0% to 3.6%) as the first pass, then test the actual horizon.
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