Financial independence (FIRE, 4% rule)
The nest egg you need to live off your investments, and how many years until you get there.
How it works
Target = yearly spending / withdrawal rate (25 × spending at 4%). Savings then grow month by month until they reach it.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Desired yearly spending30000
- Already invested40000
- Monthly savings900
- Annual return after inflation (%)5
- Withdrawal rate (%)4
you get:
- Financial independence in26 years 8 months
- Target nest egg€750,000.00 (25 × your spending)
- Monthly passive income€2,500.00
- Target year2053
Frequently asked questions
How does the “Financial independence” tool work?
Target = yearly spending / withdrawal rate (25 × spending at 4%). Savings then grow month by month until they reach it.
What do I need to enter?
Just fill in: desired yearly spending, already invested, monthly savings, annual return after inflation, withdrawal rate. The result updates as you type.
Can you give an example?
Desired yearly spending: 30000; Already invested: 40000; Monthly savings: 900; Annual return after inflation (%): 5; Withdrawal rate (%): 4 → Financial independence in: 26 years 8 months; Target nest egg: €750,000.00 (25 × your spending).
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.