Calculate when you can achieve financial independence and retire based on your savings rate and investment strategy.
Financial Information
Percentage of portfolio withdrawn annually in retirement
Annual return after inflation (real return)
Retirement Projection
Years to Retirement
12.5
Age 47.5
Retirement Number
$1,000,000
Based on 4% rule
Savings Rate
50%
Of your income
Annual Savings
$40,000
Amount saved each year
Progress to Retirement
Wealth Projection
How It Works
The 4% Rule
This calculator uses the 4% rule, which suggests you can safely withdraw 4% of your portfolio annually in retirement without running out of money.
Savings Rate Impact
Your savings rate is the most important factor in determining how quickly you can retire. Higher savings rates dramatically reduce time to retirement.
Compound Growth
Investment returns compound over time, accelerating your wealth growth as your portfolio gets larger.
Tips for Faster Financial Independence
Increase Income
Focus on career advancement, side hustles, or developing new skills to increase your earning potential.
Reduce Expenses
Examine your spending habits and eliminate unnecessary expenses. Consider downsizing housing or transportation costs.
Optimize Investments
Use low-cost index funds and maintain a diversified portfolio to maximize returns while minimizing risk.
Financial Independence Principles
Financial independence is achieved when your investment portfolio generates enough passive income to cover your living expenses, giving you the freedom to choose how you spend your time.
Live Below Your Means
Spend less than you earn and invest the difference consistently over time.
Understand Your Numbers
Know your savings rate, expenses, and target retirement number to track your progress.
Patience and Consistency
Wealth accumulation takes time. Stay consistent with your savings and investment strategy.