Passive income and FIRE calculator
Financial independence the FIRE way: how much you need to live on income from capital, when you will get there, and how much to save to make it by your chosen age.
Capital by age
Table
How passive income is calculated
The capital you need is your annual income divided by the share you can withdraw each year without eating into capital. The classic 4% rule: capital equal to 25 years of expenses.
Real return = (1 + return) / (1 + inflation) − 1
Then the calculator grows your capital month by month: real returns plus monthly contributions. Once capital reaches the target, work becomes a choice, not a necessity.
- A 3–3.5% withdrawal rate is the cautious option for a long retirement or an unstable currency.
- Capital in one country and one currency adds risk: devaluation or restrictions hit all of your income at once.
- The earlier you start, the less you need to save — see the Cost of waiting calculator.
What FIRE is
FIRE stands for Financial Independence, Retire Early. You save a large share of your income and invest it until your capital covers your expenses. After that, work is optional.
- Lean FIRE — independence on modest spending: less capital needed, the goal is closer.
- Fat FIRE — independence with room for a comfortable life: more capital, a longer road.
- Coast FIRE — when the capital you already have will grow to the target by your chosen age on its own, so you no longer have to keep saving. The calculator shows this amount.
The Wealth Plan financial checkup calculates your own pension from your numbers in three scenarios and splits capital into buckets for your risk profile.
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The financial checkup calculates your own pension in three scenarios — minimum, main and ambitious — shows the risks to your wealth and suggests instruments. Free, 10 minutes.
FAQ
How much money do I need to live on passive income?
Under the 4% rule, about 25 years of expenses. If you spend $5,000 a month, that is $60,000 a year and capital of about $1.5M. With a cautious 3% rate you need about 33 years of expenses.
What is the 4% rule?
It is the share of capital you can withdraw each year, adjusted for inflation, so that the money very likely lasts 30 years. The rule comes from historical US market data, so for other currencies and a long retirement 3–3.5% is more sensible.
What is FIRE?
Financial Independence, Retire Early. The idea is to save a large share of your income and invest it until your capital covers your expenses.
What is Coast FIRE?
It is the amount you need to have today so that, with no new contributions, it grows into the capital you need by your chosen age. Once you reach Coast FIRE you can save less or work for pleasure, and your capital keeps growing on its own.
Why does the calculator account for inflation?
In 20 years, $5,000 will buy noticeably less. The calculator works in today’s money: returns after inflation and capital in today’s prices. That keeps the goal honest.