Time to FI Calculator
Time to FI Projection
Current Age
Current Invested Portfolio
Annual Contribution
Target Annual Retirement Expenses
Real Annual Return (%)
Your Journey to Financial Independence
This calculator brings it all together. By combining your current financial snapshot with your future savings habits, it projects your path to reaching your Financial Independence Number.
The chart visualizes your net worth growth over time, showing the powerful curve of compounding interest as it marches towards your goal. Use this tool to see how long your journey might take and to experiment with the variables that can shorten your timeline.
How to Use This Calculator
1. Enter Your Current Financials
Input your current age, your current invested portfolio, and your planned annual contribution.
2. Define Your FI Goal
Enter your target annual retirement expenses and your expected real annual return (after inflation).
3. Discover Your Timeline
The calculator will estimate the number of years it will take for you to reach Financial Independence and the age at which you'll get there.
How to Shorten Your Timeline
There are three main levers you can pull to accelerate your journey to Financial Independence:
- Increase Your Annual Contribution: This is the most powerful lever. The more you save, the faster you'll reach your goal.
- Decrease Your Annual Expenses: This has a double impact. It allows you to save more now, and it lowers your ultimate FIRE Number.
- Increase Your Investment Return: While partially out of your control, asset allocation can influence your long-term returns. However, higher returns usually come with higher risk.
Optimize Your Plan
- Analyze Your Savings Rate to focus on the most powerful lever for reaching FI sooner.
- Debt vs. Investing: Decide where to allocate extra cash to maximize your net worth growth.
Frequently Asked Questions
What is a 'real' rate of return?
A 'real' rate of return is the return on an investment after accounting for inflation. For example, if your investments earn 7% in a year (the nominal return) and inflation is 3%, your real rate of return is approximately 4%. Using a real rate of return in calculations gives you a more accurate picture of your future purchasing power.
Why is my savings rate so important for reaching FI?
Your savings rate is the single most powerful lever for reaching Financial Independence quickly. A higher savings rate not only means you are accumulating more money to invest, but it also means you are learning to live on less, which reduces the size of the portfolio you need to build (your FIRE Number). A high savings rate attacks the problem from both ends.
How does this calculator determine my FIRE Number?
This calculator uses the 4% Rule as a baseline to determine your FIRE number. It multiplies your 'Target Annual Retirement Expenses' by 25. This is a common method in the FI community to estimate the portfolio size needed to live off the returns.