Networthify's calculation for withdraw rate

[yunsu89]

Networthify:https://networthify.com/calculator/earlyretirement?income=70000&initialBalance=0&expenses=25200&annualPct=5&withdrawalRate=4

I just used Networthify today and see the default assumption is annual return on investment = 5% and withdraw rate =4%. however, when I changed withdraw rate to to 3%, the “You can retire year” has increased, but theoretically I think the years to retire should decrease, I wonder if I misunderstand how to use this chart entirely? Trying to reach out to their contact methods but it doesn’t work..

If anyone knows about this and can share the thoughts on this, much appreciated!

[reeshau]

If you have only changed the withdrawal rate, and not your annual expenses, then yes you have to save more, so your retirement date is pushed out.

$25,200 / .04 = $630k stache needed

$25,200 / .03 = $840k stache needed

[yunsu89]

Got it, it all makes sense now, so it's like taking out a smaller percentage each year, and I need a larger initial money to generate the same amount of income. Thanks so much for explaining! 

[Ron Scott]

This app doesn’t care how long your money needs to last?