Financial Independence Calculator (FI Number & Timeline)
Determine the exact portfolio milestone required to sustain your lifestyle indefinitely without dependence on employment income. This calculator computes your Financial Independence (FI) target number and projects your timeline to freedom based on current savings and compounding returns.
Annual expenditure required to sustain your ideal lifestyle in retirement
Annual withdrawal percentage (the Trinity Study benchmark is 4.0%)
Current liquid invested assets (stocks, bonds, cash equivalents)
New capital saved and invested into portfolio every year
Expected real annual return after inflation (broad stock market average ~7%)
Total invested wealth needed to support your living expenses indefinitely
How to Use This Calculator
- Enter your expected annual living expenditures in retirement.
- Select your safe withdrawal rate (4.0% is standard; conservative early retirees often choose 3.25% to 3.5%).
- Input your current invested assets and expected annual future savings contributions.
- Review your total FI Number milestone and estimated years remaining to financial freedom.
Formula & Calculation Methodology
Originating from the landmark Trinity Study, the 4% rule establishes that a diversified portfolio of 50–75% equities can support 4% annual initial inflation-adjusted withdrawals with negligible risk of exhaustion across 30+ years.
Worked Example
$60,000 annual expenses with 4% SWR, $250k starting assets, and $30k annual savings at 7% real return
Frequently Asked Questions
What is the 4% rule for financial independence?↓
The 4% rule originated in the 1998 Trinity Study. It demonstrated that withdrawing 4% of a balanced stock/bond portfolio in year one, adjusted annually for inflation, historically sustained retirement portfolios over 30-year horizons with a 95%+ historical success rate.
Should early retirees use a lower withdrawal rate than 4%?↓
Yes. For retirements lasting 40 to 60 years, researchers like Big ERN and Michael Kitces recommend a safer withdrawal rate of 3.25% to 3.5% (roughly 28x to 30x annual expenses) to insulate against sequence of returns risk.
Does my primary residence count toward my FI Number?↓
Generally no, unless you plan to downsize, rent out rooms, or relocate. Your FI Number should be backed by liquid, income-generating or appreciating investment assets that can fund living expenses.
How does increasing savings rate accelerate the FI timeline?↓
Increasing your savings rate has a compounding dual benefit: it increases your investment contributions while simultaneously lowering your lifestyle expenditure, dramatically reducing your needed FI Number.
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Open calculator →Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.