Phase 2 · Wealth & Leverage
FIRE Velocity Calculator
Financial independence isn't about how much you earn — it's about the gap you keep. Set your savings and returns and see the exact age work becomes optional.
How long until I reach financial independence?
Your savings rate sets the timeline, not your income, because the gap you keep both funds the portfolio and defines the target it has to hit. Your FI number = annual spending ÷ safe withdrawal rate, and the portfolio compounds as portfolio × (1 + real return) + annual savings until it clears that number.
- Worked example (defaults on this page): $90,000 take-home with $50,000 of spending saves $40,000 a year — a 44.4% savings rate — against an FI number of $1,250,000 at a 4% withdrawal rate.
- Starting from $100,000 at a 5% real return, that reaches FI in 17 years, at age 47.
- Cutting spending is doubly powerful: every dollar less spent is a dollar more saved and $25 off the FI number at a 4% rate. A raise you spend moves nothing.
- Use a real (inflation-adjusted) return here, not a nominal one. Feeding in 10% instead of 5% makes the date look years closer than it safely is.
Path to financial independence
Under the hood
The math, fully exposed
Your FI number is fixed by spending; your savings rate and returns set how fast you get there. We project year by year:
Annual savings = income − spending
Savings rate = annual savings ÷ income
FI number = annual spending ÷ safe withdrawal rate
Each year: portfolio = portfolio × (1 + real return) + annual savings
Years to FI = years until portfolio ≥ FI number
- Spending is the double lever: cutting expenses both lowers your FI number and raises your savings rate — it moves the target closer and speeds you toward it at once.
- Real returns only: we use returns after inflation so the FI number stays in today's dollars. A 5% real return is a common long-run stock/bond assumption.
- Savings rate is destiny: at a 50% savings rate, FI arrives in ~17 years no matter the income. The percentage gap, not the dollar income, drives the timeline.
Your directives
What to do next, based on your numbers
Adjust the sliders to generate tailored recommendations.
Answers
Frequently asked questions
What is the 4% rule (safe withdrawal rate)?
The 4% rule says you can withdraw about 4% of your portfolio in year one, adjust for inflation each year after, and have a high probability the money lasts 30+ years. It comes from the Trinity Study. A 4% rate implies a FI number of 25× your annual spending. Lower rates (3.5%) are safer for very long or early retirements; higher rates carry more depletion risk.
What is my FI number?
Your FI number is the portfolio size at which work becomes optional: annual spending ÷ safe withdrawal rate. At a 4% rate, $50,000 of spending needs $1.25M invested. Notice it keys off spending, not income — cutting expenses lowers the target and raises your savings rate at the same time.
Why does savings rate matter more than income?
Because years-to-FI depends on the gap between what you earn and what you spend, expressed as a percentage. A 50% savings rate reaches FI in roughly 17 years regardless of whether you earn $60k or $600k. A high income with high spending can be slower to FI than a modest income lived frugally.
What is sequence-of-returns risk?
It's the danger of a market crash early in retirement, when withdrawals from a shrunken portfolio do permanent damage. Two retirees with the same average return can have very different outcomes based on the order of returns. It's why withdrawal rates above 4% — and retiring into a downturn — warrant extra caution and cash buffers.