The Safe Withdrawal Rate (SWR) is the maximum percentage of your retirement corpus you can withdraw in the first year with the withdrawal amount increased for inflation each subsequent year.
Instead of running fresh simulations every time, this page uses a compact formula derived from simulations across every combination of equity allocation (0–100%) and retirement horizon (10–100 years). The formula used fits the simulation results with R² = 0.996.
Source: Saraogi, Ravi, From Simulations to Simplicity: A Formula for Safe Withdrawal Rates (December 11, 2025). Available at SSRN: https://ssrn.com/abstract=5905203 or http://dx.doi.org/10.2139/ssrn.5905203
This is the maximum annual withdrawal (as % of initial corpus) that has a 95% probability of lasting the full retirement period. The formula is a rule-of-thumb and should be complemented by advice on other income sources, changing spending needs, and individual risk tolerance.