FI Number Calculator
Your Financial Independence (FI) Number is the amount of money you need invested to live off the returns indefinitely, without having to work for money.
1. Annual Expenses:Enter your total living expenses for one year. This is the amount of income your investments need to generate.
2. Safe Withdrawal Rate (SWR):This is the percentage of your portfolio you can withdraw each year without depleting your principal over the long term. A rate of 4% is a common benchmark (known as the "4% Rule"), but you can adjust this based on your risk tolerance.
Formula: FI Number = Annual Expenses / (SWR / 100)This is a simplified guideline. The 4% Rule is based on historical data and does not guarantee future results. Market performance, inflation, and your lifespan can all affect the outcome. This is not financial advice.
Find your target for financial independence.