4% Rule Daily Budget Calculator
See exactly how much you can spend each day in retirement. Enter your portfolio value, and we'll calculate your safe daily spending limit based on the 4% rule.
Your Retirement Portfolio
Total invested assets (401k, IRA, brokerage, etc.)
Safe Withdrawal Rate
4%The 4% rule is based on the Trinity Study. Lower is more conservative.
Monthly Fixed Expenses
Housing, utilities, insurance, healthcare, etc.
Your Withdrawal Summary
Comfortable Buffer
Your withdrawals cover fixed expenses with room for daily spending.
Your Retirement Daily Budget
That's $1,833 ÷ 31 days = $59.13/day
Stay under this daily limit and your portfolio can sustain your retirement indefinitely (based on the 4% rule).
Track Your Retirement Spending
BUDGT helps retirees stay on track with a simple daily budget. Know exactly what you can spend without worrying about running out.
Try BUDGT FreeWhat is the 4% Rule?
The 4% rule is a guideline for retirement withdrawals based on the Trinity Study. It suggests that withdrawing 4% of your portfolio in the first year of retirement (then adjusting for inflation) gives you a high probability of not running out of money over 30 years.
For a $1,000,000 portfolio, that's $40,000 per year, or about $3,333 per month. After fixed expenses, the remainder becomes your daily spending budget.
The Math
Annual Withdrawal = Portfolio × Withdrawal Rate
Monthly Withdrawal = Annual ÷ 12
Available for Spending = Monthly - Fixed Expenses
Daily Budget = Available ÷ Days in Month
Why Track Daily Spending in Retirement?
Reduce Spending Anxiety
Years of saving create spending anxiety. A daily limit gives you permission to spend — if you're under it, you're fine.
Adjust in Down Markets
When markets drop, daily awareness helps you naturally adjust spending without panic. Small daily changes add up.
Enjoy Variable Spending
Some months you travel, others you stay home. Daily tracking lets you flex spending while staying on track annually.
Simple Mental Math
$60/day is easier to evaluate than $1,800/month or $21,600/year. Quick decisions without complex calculations.
Frequently Asked Questions
Is the 4% rule still valid?
The 4% rule is a guideline, not a guarantee. It was based on historical US stock/bond returns. Many financial planners now suggest 3.5% for more conservative planning, especially for early retirees with 40+ year horizons. You can adjust the rate in our calculator.
Should I adjust my withdrawal rate based on market conditions?
Many retirees use flexible withdrawal strategies — spending less in down years and more in up years. This "guardrails" approach can actually improve your success rate compared to rigid 4% withdrawals. Daily budget tracking helps you make these adjustments naturally.
What counts as fixed expenses?
Fixed expenses are costs that stay roughly the same each month: housing (mortgage/rent, property tax), utilities, insurance (health, home, auto), subscriptions, and any debt payments. Variable expenses like groceries, dining, entertainment, and travel come from your daily budget.
How do I handle large one-time expenses?
For big expenses like a new roof or car, you can either: (1) save up over multiple months by spending under your daily limit, (2) accept that some months will be over budget while others are under, or (3) treat it as a separate budget item. BUDGT's month overflow feature helps with this.
What about Social Security and pensions?
If you have Social Security or pension income, you can either: (1) reduce your fixed expenses by that amount (since those payments cover some expenses), or (2) reduce the portfolio withdrawal needed. Either way, your daily budget for discretionary spending increases.