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How much money do you actually need to reach financial independence?

The most common starting point is the "4% rule": take your annual expenses, multiply by 25 (the same as dividing by a 4% withdrawal rate), and that's roughly the portfolio size that's historically been able to sustain those withdrawals indefinitely. It's a good back-of-envelope number, and this calculator's Basic tab gives you exactly that — instantly, from just your expenses and withdrawal rate.

The problem with stopping there is that the 4% rule is a static snapshot. It assumes your expenses never change, doesn't know your age or how close you actually are, and can't see a pension starting later, a mortgage getting paid off, or a stretch of part-time "Barista FI" income bridging the gap. The Intermediate and Advanced tabs replace that snapshot with a real year-by-year solvency simulation: for every candidate retirement age, it asks whether a portfolio drawn down against your actual, changing expense schedule would survive all the way through your planning horizon — not just today.

That's why the number this calculator gives you can come in below the classic 4%-rule figure without assuming a higher market return to get there — only because of real, known changes to your future expenses, like a pension kicking in or a mortgage getting paid off on schedule. Add your age, income, and savings on the Intermediate tab for a real projection, or go to Advanced to layer in a government or workplace pension, side income, one-time windfalls or expenses, and a lasting expense change — all against one shared model, so the dashboard KPI always reflects your fullest picture regardless of which tab you leave the tool on.

Frequently asked questions

What is the 4% rule?
The 4% rule is a rule of thumb from historical market research suggesting that withdrawing 4% of a portfolio's starting value each year (adjusted for inflation) has a strong track record of lasting at least 30 years without running out. In practice, that means a FI target of about 25 times your annual expenses. It's a useful starting estimate, but it's a static number — it doesn't know your specific age, income, or future expense changes, which is what the Intermediate and Advanced tabs add here.
How much money do I need to retire or reach financial independence?
As a starting point, roughly 25 times your annual expenses — the 4% rule. But the real answer depends on your withdrawal rate, expected returns while still saving, your age, and any future changes to your expenses or income, like a pension or a paid-off mortgage. This calculator's Advanced tab runs a full simulation against your specific numbers rather than relying on one generic multiple.
What's a safe withdrawal rate?
4% is the most commonly cited default, based on historical U.S. market data over 30-year retirement periods. Some people use a more conservative 3–3.5% for longer retirements or extra safety margin, others go slightly higher for shorter horizons or if they have flexibility to cut spending. This calculator treats whatever rate you set as the sustainable rate once you stop working — there's no separate hidden market-return assumption doing extra work behind it.
Should I enter my numbers before or after tax?
After tax. Enter your take-home pay (what actually reaches your bank account) plus anything that goes into a retirement account through work before your pay arrives, including what your employer adds. For expenses, use what you actually spend. If much of your savings will be taxed when you withdraw it, set the withdrawal rate a little lower to leave room for that tax.
What is Barista FI or Coast FI?
"Barista FI" describes stepping down to part-time or lower-stress work — rather than full retirement — once your savings can cover most, but not all, of your expenses, with the part-time income filling the gap. On the Advanced tab, you can model this directly by adding side or part-time income with a start and end age, and the simulation will factor it into whether and when you'd actually be solvent.
Does this calculator account for a pension?
Yes — on the Advanced tab, you can add a government or workplace pension, set the annual amount and the age it starts, and the year-by-year simulation will account for it exactly when it begins. This is one of the main reasons the calculator's real target age can come in earlier than the static 4%-rule number: a known future income source reduces how much your portfolio needs to cover on its own.
What return rate should I use?
The "expected return" field only applies while you're still saving and accumulating — a common starting point is a real (inflation-adjusted), diversified-portfolio return around 5–7%, but it's your call based on your own asset allocation and risk tolerance. Once you stop working, this calculator switches to your withdrawal rate as the sustainable rate directly, rather than layering a separate market-return assumption on top of it.
Is my financial data stored anywhere?
No. Everything you enter is saved only in your browser's local storage — nothing is sent to a server, and there's no account or sign-in. That also means it's only available on this browser and device; use the dashboard's "Export all" button any time you want a backup file you can restore later or move to another device.