Tool · planning
Financial independence
The magic number for financial freedom isn't magic, it's a division. Enter your spending, your savings and some sensible returns, and see the year your investments could start paying for your life.
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Your numbers
Assumptions and how it's calculated
What it calculates. The wealth you need is your yearly spending divided by the withdrawal rate. At 4% that's 25 times your spending; at 3%, about 33 times. That target is in today's money and, since prices go up, it's updated for inflation every year.
How your wealth grows. It's worked out month by month: the money grows at the yearly return you enter (converted to its monthly equivalent) and your saving is added at the end of each month. The monthly saving goes up by the percentage you choose at the start of every year. You get there in the first month your wealth is above the target for that month.
What it leaves out. Taxes, fees, state pensions, and a run of bad years right when you start withdrawing (sequence risk). Real market returns aren't constant: some years are great and some fall, so the year you see here is a guide, not a date.
If you want to see how much fees eat along the way, try The cost of fees.
This is an exercise based on your assumptions, not a recommendation.
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