Financial Freedom Number Calculator
Work out the portfolio that lets investment income cover your living costs — accounting for any pension or rental income — and how close you are today.
How it works
Net annual need = (monthly expenses − passive income) × 12 · Freedom number = net annual need ÷ (safe withdrawal rate%) · Progress = current savings ÷ freedom number
Financial freedom is the point where your investments can fund your lifestyle without a paycheck. Divide the expenses you still need to cover — after any pension or rental income — by a safe withdrawal rate, and you get the portfolio required. The classic 4% rate implies a 25× multiple of annual expenses; a more cautious 3.5% pushes it toward 28×. Counting existing passive income lowers the target directly, which is why a paid-off rental or a pension can shrink the number dramatically.
Worked example
With $4,000/month of expenses and $500/month of passive income, you must cover ($4,000 − $500) × 12 = $42,000 a year from investments. At a 4% rate that is 42,000 ÷ 0.04 = $1,050,000. With $150,000 saved you are about 14.3% of the way there, with roughly $900,000 to go.
Frequently asked questions
Why divide by the withdrawal rate?
A safe withdrawal rate is the share of a portfolio you can spend each year without running out. Dividing your annual need by that rate gives the portfolio large enough to generate it — 4% implies 25 times your annual expenses.
How does this differ from a FIRE number?
It is the same core idea, but this version subtracts income you already receive (pension, rental, benefits) so you only fund the gap, and it lets you pick the withdrawal rate yourself.
What withdrawal rate is safe?
The 4% rule is the common benchmark for a 30-year retirement. Longer retirements or cautious planners often use 3–3.5%, which raises the target but adds a bigger safety margin.
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Educational estimate, not financial advice.