How do I calculate my financial independence number?

FI Number = Annual Expenses × 25. This is based on the 4% safe withdrawal rate rule from the Trinity Study, which found that a 4% annual withdrawal from a diversified portfolio has historically sustained 30+ year retirements in 95%+ of historical scenarios. Example: if you spend $60,000/year, your FI number is $1,500,000. If you can reduce expenses to $40,000/year, your FI number drops to $1,000,000—a 33% reduction in the target that also shortens your savings timeline significantly.

How does my savings rate affect when I reach financial independence?

Savings rate is the single most powerful lever for reaching FI. At a 10% savings rate, it takes approximately 51 years to reach FI (assuming 7% real investment return). At 25%, it takes 32 years. At 50%, 17 years. At 75%, just 7 years. The relationship is highly non-linear—going from 10% to 25% saves 19 years; going from 50% to 75% saves only 10 more. This is because a higher savings rate simultaneously increases the invested amount and decreases the annual expenses (FI number) you're working toward.

Financial Independence Number Calculator

Calculate your financial independence number—the investment portfolio size that generates enough passive income to cover all expenses indefinitely using the 4% safe withdrawal rate rule.

Cooking & Food

Clothing & Sewing

Home & Garden

Auto & Vehicle

Shopping & Budget

Travel & Leisure

Recipe Scaler

Original Servings

Target Servings

Ingredients

How It Works

Calculate your financial independence number—the investment portfolio size that generates enough passive income to cover all expenses indefinitely using the 4% safe withdrawal rate rule

Each component has a specific meaning:

4% safe withdrawal rate rule — The 4% safe withdrawal rate rule recorded for the scenario being assessed.

Note: Interpret the fi number result against the thresholds and context described above.

How to Use

Enter the 4% safe withdrawal rate rule for the scenario you are assessing. Calculate your financial independence number—the investment portfolio size that generates enough passive income to cover all expenses indefinitely using the 4% safe withdrawal rate rule. Use the fi number result to inform your calculation.

Related Calculators

Retirement Gap

Everyday

Debt Snowball