What is the 4% rule here?

The target is annual expenses divided by 0.04. That is the portfolio that would cover spending at a 4% withdrawal.

How is the savings rate used?

It is the share of income you keep. Income is expenses divided by one minus that rate, and the difference is what you add each year.

Is the return guaranteed?

No. The percent is applied once a year, with no crashes, fees, or tax.

FIRE Calculator

Years to financial independence on the 4% rule, from the numbers you type.

Financial independence here means a portfolio of 25 times annual expenses, the 4% rule. Savings rate is the share of income you keep, so income is inferred from expenses and that rate. The balance grows once a year at the return you enter, then the year’s savings are added. It is a planning sketch, not a forecast.

Current savings

AUD

Annual expenses

AUD

Expected return

Savings rate

Years to FI

21 years to a $1,250,000.00 FI number, saving $21,428.57 a year at 7% expected return.

FI number

$1,250,000.00

Saved each year

$21,428.57

Calculations happen in your browser.

Worked example

$80,000 saved, $50,000 a year of expenses, a 7% return, and a 30% savings rate. The FI number is $1,250,000, which is 25 times expenses. Annual savings are inferred from the rate and the expenses, then the balance is grown year by year.

FAQ

What is the 4% rule here?: The target is annual expenses divided by 0.04. That is the portfolio that would cover spending at a 4% withdrawal.
How is the savings rate used?: It is the share of income you keep. Income is expenses divided by one minus that rate, and the difference is what you add each year.
Is the return guaranteed?: No. The percent is applied once a year, with no crashes, fees, or tax.