How it works
Observed withdrawal rate = annual withdrawal / beginning portfolio value × 100.
Input definitions
- Annual portfolio withdrawal
- Enter the value in the labeled unit.
- Portfolio value at start of year
- Enter the value in the labeled unit.
A worked example
- Annual portfolio withdrawal
- 20000
- Portfolio value at start of year
- 500000
Assumptions & limits
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Does a 4% rate guarantee that savings last?
No. This is a descriptive ratio, not a safe-withdrawal recommendation. Market returns, sequence risk, taxes and longevity matter.
How does Observed annual portfolio withdrawal rate work?
Observed withdrawal rate = annual withdrawal / beginning portfolio value × 100.
What should I check before using Observed annual portfolio withdrawal rate?
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.