What it answers
This is a financial independence calculator, also known as FIRE. It estimates when you could start living off your investments and how much capital you’d need to cover your spending for the years you choose.
Living off your investments calculator
Estimate when you could start and how much capital you’d need for the period you choose.
Budget Pop
This is an estimate: it assumes a constant return and doesn’t include taxes.
Method
Capital needed
This is the money that lets you take out your spending at the start of each month for the whole period and reach 0 at the end. The formula is: spending × (1 − (1 + r)^−n) × (1 + r) ÷ r, where r is the equivalent monthly return and n is the number of months. With no return, it’s spending × n.
Start date
We begin with what you’ve already invested. Each month we apply the return and add your contribution. The date is the first month you reach the capital needed. We only calculate up to 80 years.
Withdrawal stage
From that date you stop contributing and take out your spending each month, while the rest stays invested. That’s why the capital can be less than your total spending: gains pay for part of it. If you already have more than you need, the simulation starts from what you have.
Return and inflation
Enter the return left after inflation. If your investments earn 7% and inflation is 2%, enter about 5%. That way, all the numbers are in today’s money: your spending keeps its purchasing power, even if it’s a bigger number by then.
What it leaves out
It assumes the same return every year. It doesn’t include bad market years, taxes, fees, pensions or changes in your spending. It’s an estimate to guide you, not financial advice.
Frequently asked questions
What return should I use?
We use 5% above inflation as an example, but nothing’s guaranteed. Try 3 or 4% as well for a more cautious scenario.
Does it include taxes?
No. You’ll usually pay tax on gains when you sell investments, so leave some margin in your number.
Do I have to stop working?
No. Plenty of people aim for this number so they can choose: change jobs, work fewer hours or simply have a very big cushion.
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Start your budget today
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