CAPE-Based Withdrawal Calculator
Calculate your sustainable withdrawal rate based on current market valuations
Your Portfolio Information
$
Current Shiller PE ratio (CAPE)
SWR = 1.5% + (0.5 × (1 ÷ CAPE))
This formula creates a variable withdrawal rate that adjusts to market valuations, helping ensure a sustainable retirement income.
Your Results
CAEY (Cyclically Adjusted Earnings Yield)
3.0989%
This represents the inverse of the CAPE ratio and is a key component in our calculation.
CAPE-Based Safe Withdrawal Rate
3.05%
This is your recommended initial withdrawal rate based on the current CAPE ratio.
Traditional 4% Rule
4.00%
CAPE-Based Method
3.05%
Difference
23.8% less
CAPE-Based Withdrawal Amount
$30,494
This is how much you can withdraw in your first year using the CAPE-based method.
4% Rule Amount
$40,000
CAPE Method Amount
$30,494
Annual Difference
$9,506 less
Using This Calculator Wisely
Remember that this calculator provides a starting point based on current market conditions. For a truly sustainable retirement strategy:
- Recalculate your withdrawal rate annually as market conditions change
- Be flexible with your withdrawals based on portfolio performance
- Consider additional income sources to supplement portfolio withdrawals
