How much do you need invested to live off your returns without depending on a salary? This calculator uses your target safe withdrawal rate to give you the net worth you need and an approximate date, at your current savings rate. If you'd rather see it as the monthly gap you still need to close instead of a date, also try the Rat Race calculator. Results update instantly; nothing is sent to any server.
Target net worth = (annual expenses − current passive income × 12) / withdrawal rate × (1 + safety margin). This is the "4% rule" applied to the gap your current passive income doesn't cover yet, plus a cushion for surprises (a big repair, a new car...): the extra capital that, withdrawing that percentage every year, covers the rest without running out with a diversified long-term portfolio. The accumulation return (above) should ideally already be net of inflation. Only count the liquid, diversified part of your net worth here (index funds, ETFs, stocks, bonds) that you could sell off gradually. Your primary home, a rental property or a business of your own don't fit a percentage withdrawal rate: they're a better fit for the Rat Race calculator.
A more conservative rate needs more net worth, but is safer long-term:
| Withdrawal rate | Target net worth | Approx. date |
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Want to understand where the 4% rule comes from and how to apply it to your case?
📚 Academy Level 8: Financial independence