The method
How it is worked out
Target = (spending − guaranteed income) ÷ withdrawal rate; years solved by compounding contributions at the real return
- withdrawal rate
- The share of the pot drawn each year; 3–4% is the usual planning range
Financial Independence Calculator
Find the pot that would fund your spending indefinitely and how many years of saving gets you there. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Sequence riskA crash early in retirement hurts more than the average return suggests.
- TaxWithdrawals may be taxed; spend figure should be after tax.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Financial Independence Calculator
Find the pot that funds your spending without work, how far along you are and how many years of saving it takes.
How it works and an example to tryShow less
How to use the result
Target is annual need divided by the withdrawal rate. Years to reach it compound current savings and monthly contributions at the real return.
Example to try
Spending £36,000 at a 3.5% withdrawal rate needs about £1.03m. From £80,000 with £1,200 a month at 5% real returns that takes about 27 years.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
People planning early retirement or simply wanting a number to aim at.
Mistakes worth avoiding
- Using nominal returns with today's spending.
- Ignoring guaranteed income that reduces the need.
- Forgetting tax on withdrawals.
Questions
What does the Financial Independence Calculator do?
Find the pot that would fund your spending indefinitely and how many years of saving gets you there.
How should I use the result?
Target is annual need divided by the withdrawal rate. Years to reach it compound current savings and monthly contributions at the real return.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a financial independence calculator?
Using nominal returns with today's spending. Ignoring guaranteed income that reduces the need. Forgetting tax on withdrawals.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.