Financial planning
How much capital do you need for financial independence?
Capital needed to live off investments (safe withdrawal rate) and years to reach it with your savings plan.
Quick answer
FIRE capital = annual spending ÷ safe withdrawal rate. €30,000/year at 4% SWR → 30,000 ÷ 0.04 = €750,000 (the “×25 rule”). That is the portfolio size from which a 4% annual withdrawal might fund your lifestyle — a planning shortcut from historical studies, not a guarantee. Add optional current capital, monthly contributions and expected return to see in how many years you could reach that number under your assumptions.
Capital needed (FIRE number)
$750,000.00
- Spending × multiplier
- ×25
- Years to reach target
- 40 years
- Projected annual withdrawal at SWR
- $30,000.00
Related calculators: ETF savings plan · Savings goal · Compound interest · Mortgage payment · Rental yield
⚠️ Educational estimate only — not financial advice. Returns are assumptions, not guarantees — past results do not predict future performance and invested capital is at risk.
FIRE capital = annual spending ÷ withdrawal rate (4% → ×25). Years use the same accumulation formula as the ETF savings plan with your return hypothesis. Withdrawal rates are debated — 3–4% is a common planning range, not a guarantee.
How it works
The withdrawal rate is debatable: 3% is more conservative, 4% is the classic rule-of-thumb, 5% is aggressive. This tool does not model sequence-of-returns risk, taxes or healthcare — use it to frame the question, then refine with professional advice if needed.
Frequently asked questions
What is the 4% rule?+
A retirement research heuristic: withdraw 4% of the portfolio in year one, adjust for inflation thereafter — historically survived many 30-year US periods. Markets differ by country and future returns may be lower. Treat 4% as an editable hypothesis, not a promise.
Which expenses should I include?+
All living costs you expect in financial independence: housing, food, insurance, travel, hobbies — net of any pension or passive income you are sure of. Exclude one-off purchases; include a buffer for healthcare and inflation.
Why might I never reach the target in the calculator?+
With zero contributions and return below spending growth, capital does not catch up. Raise monthly savings, extend the horizon, lower target spending, or increase the return hypothesis (understanding it adds risk).
FIRE vs normal retirement planning?+
FIRE targets early exit with a larger self-funded pot and often leaner spending. State pensions and workplace schemes reduce the FIRE number if you trust them — this calculator assumes you fund the full annual spend from the portfolio at your SWR.