📖 Overview
Calculate your crossover point where your investment portfolio can sustain your lifestyle indefinitely based on the safe withdrawal rate.
🧪 Example Scenarios
Use these default and higher-pressure example inputs to explore how sensitive this calculator is before using your real numbers.
| Input | Base Case | Higher Pressure Case |
|---|---|---|
| Current Portfolio ($) | 100,000 | 115,000 |
| Annual Contribution ($) | 20,000 | 23,000 |
| Annual Expenses ($) | 50,000 | 57,500 |
| Expected Growth (%) | 7 | 8.4 |
| Safe Withdrawal Rate (%) | 4 | 4.8 |
⚙️ How It Works
Determines how many years it will take to reach financial independence and retire early (FIRE) based on your current portfolio, annual contributions, expected expenses, portfolio growth rate, and planned safe withdrawal rate.
The Formula
Quick Reference
| Input | Example Value |
|---|---|
| Current Portfolio ($) | 100000 |
| Annual Contribution ($) | 20000 |
| Annual Expenses ($) | 50000 |
| Expected Growth (%) | 7 |
| Safe Withdrawal Rate (%) | 4 |
When To Use This
- Use this tool when you need a fast decision during active planning or execution.
- Use this before committing money, time, or tradeoffs that are hard to reverse.
- Use this to compare options using the same assumptions across scenarios.
Edge Cases To Watch
- Results can be misleading if key inputs are missing, stale, or unrealistic.
- Very small or very large values may amplify rounding effects and interpretation risk.
- If assumptions change mid-decision, recalculate before acting.
Practical Tips
Frequently Asked Questions
❓ What is the 4% Rule?
It states you can safely withdraw 4% of your starting portfolio each year, adjusted for inflation, with high confidence it will last 30+ years.
❓ Does FIRE require extreme frugality?
No. Lean FIRE focuses on minimalism, but Fat FIRE targets a high income replacement for a comfortable lifestyle.