Retirement Calculator

How does this work?

This retirement calculator is calculating when you can retire based on your expenses in retirement. It is the idea of knowing your Financial Independence Number.

The calculator will estimate how long it will take your reach this number. For this, it is using your savings rate to increase your net worth. And it is using a 7% rate of return for your money.

Once your net worth reaches your Financial Independence Number, you are Financially Free. At this point, you could afford to retire.

The tool will also compute your historical chances of success of retiring with a 100% stock portfolio for 30 years. For this, it will use my other FIRE Calculator that is all about withdrawal rates.

How to become Financially Free faster?

There are several ways you can become FI faster.

The first thing you can do is to reduce your expenses. By doing that, your FI Number will decrease, and you will become FI faster.

The other thing is to increase your income. If you increase your income and do not increase your expenses, you will save more every month. Every percent of savings rate you can add will significantly speed up your journey.

Using this retirement calculator

First, estimate how much money you will spend per year in retirement. This number is not how much you are spending now. But how much you are going to spend later. For many people, this is higher than their current expenses.

Then, you need to choose a withdrawal rate. For most people, a 4% withdrawal rate will work fine.

After this, you need to enter your current annual income and your savings rate. Your savings rate is how much of your income you are saving every month.

Finally, you can enter your current net worth. If you do not know it yet, it is a good time to compute your net worth. Then, you can click on Calculate. And the calculator will do all the rest! It has never been so simple to gain knowledge about your personal finances.