OraCalculate the spending gap first
Start with annual spending, then subtract reliable annual income that genuinely covers the same period. The remainder is the investment-funded gap. Target = gap ÷ (withdrawal percentage ÷ 100). If verified income already covers the spending, the modeled portfolio gap is zero.
Match all figures in currency, tax basis and purchasing-power date. Do not subtract an uncertain gross income figure from an after-tax spending requirement without reconciling the difference.
30,000.00 of spending to fund
With no other income and a 4% chosen initial withdrawal assumption, 30,000 ÷ 0.04 = 750,000.00. At 3% the same gap gives 1,000,000.00; at 5% it gives 600,000.00.
If 10,000.00 of reliable income covers part of that same 30,000.00 spending period, the gap is 20,000.00. At the illustrative 4%, the target becomes 500,000.00. If the income starts later, a separate bridge-period plan is needed.
An inverse percentage is not a safety test
A lower withdrawal assumption increases the target, but no value here proves that money lasts indefinitely. The calculator does not run historical simulations, estimate success probabilities or adapt withdrawals after a market fall.
Consider the investment and longevity risks described by Investor.gov: managing lifetime income. Irregular costs, taxes on withdrawals, fees, household changes and longevity belong in the wider plan.
The FIRE target and risk explanation shows why an inverse percentage is not proof that withdrawals are sustainable. Use the FIRE timeline calculator only when you also want to model contributions and a chosen constant real return.
Use the right next calculation
Use the FIRE calculator to explore how saving and growth could move assets toward this target. Use Coast FIRE to estimate an amount invested today for a distant target without additional contributions. Keep the target and timeline questions distinct so the results do not imply more than they calculate.
Common questions
Is my financial independence number always 25 times spending?
Only when the chosen withdrawal assumption is 4% and the spending gap is fully portfolio-funded. Other assumptions give other multiples.
Does this calculate my retirement date?
No. It converts a spending gap into a target. A timeline also needs current investments, contributions and a growth assumption.
Should I include a pension?
Only income applicable to the same period, on a compatible tax basis and with its conditions understood. Later-starting income needs separate bridge-period modeling.
Educational estimate using the stated assumptions. Fees, taxes, changing rates and individual circumstances can change an outcome. This is not personalized financial advice. Read the estimates disclaimer.