Calculate your savings rate and see exactly how many years it takes to reach financial independence at your current and higher savings rates.
After-tax monthly income
Total monthly spending (rent, food, bills, etc.)
Total investable assets today (0 if starting fresh)
Portfolio return assumption (US equities avg ~10%)
Your savings rate determines both how fast your portfolio grows AND how large a portfolio you need. High earners who spend most of their income need massive portfolios; frugal savers need far less. A 50% savings rate means your working years and spending habits are already optimized for early retirement — your FI number is only 25× your half-income expenses, not 25× your full income.
Financial independence (FI) is typically defined as a portfolio of 25× your annual expenses — derived from the 4% rule. This gives you enough to sustain withdrawals indefinitely. If you spend less, your FI number drops proportionally, dramatically shortening your timeline.
Yes — your current savings are modeled as the starting balance that compounds at your expected return rate alongside new annual contributions.
Use take-home (after-tax) income. Your savings rate reflects what you can actually deploy. Pre-tax contributions to 401k count as savings, but base your expense figure on after-tax spending.
It means 25 times your annual expenses — the portfolio size that supports a 4% annual withdrawal forever. If you spend $60,000/yr, your FI number is $1,500,000.