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Financial Independence Calculator

Track progress to financial independence across portfolio, passive income and spending.

About Financial Independence Calculator

Independence is the share of spending that passive income covers, which makes it a continuous measure rather than a binary state. The capital still needed converts the remaining gap back into a portfolio figure. Framing independence as a percentage is more motivating and more accurate than a single target date, because every contribution moves it measurably.

Formula

Financial Independence

Independence % = (portfolio × withdrawal rate + other passive income) ÷ annual spending

passive income
Income arriving without working, including portfolio withdrawals

Worked example

With the default values below, Financial Independence Calculator returns Financial Independence Achieved of 44.8%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Invested portfoliominimum 0
320,000
Other annual passive incomeminimum 0
6,000
Annual spendingminimum 0.01
42,000
Safe withdrawal rateaccepts 0–100 %
4 %

Results

Financial Independence Achieved
44.8%
Income the Portfolio Supports
$12,800.00
Total Passive Income
$18,800.00
Annual Spending Not Yet Covered
$23,200.00
Capital Still Needed
$580,000.00

Step by step

  1. 1Values used
  2. 2Financial Independence
  3. 3Financial Independence Achieved= 44.8
  4. 4Income the Portfolio Supports= 12,800.00
  5. 5Total Passive Income= 18,800.00
  6. 6Annual Spending Not Yet Covered= 23,200.00
  7. 7Capital Still Needed= 580,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Financial Independence calculated?

Independence % = (portfolio × withdrawal rate + other passive income) ÷ annual spending Independence is the share of spending that passive income covers, which makes it a continuous measure rather than a binary state. The capital still needed converts the remaining gap back into a portfolio figure.

Why does Financial Independence matter?

Framing independence as a percentage is more motivating and more accurate than a single target date, because every contribution moves it measurably.

What values do I need to enter?

This calculator takes 4 inputs: Invested portfolio, Other annual passive income, Annual spending, Safe withdrawal rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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