Rat Race calculatorWorking to cover expenses that only create more expenses: that's the rat race. This calculator tells you how much passive income you need to get out of it, and how long it will take at your current savings rate. If your plan is a diversified portfolio you'll draw down gradually (the 4% rule) instead of an asset that pays you rent, try the When can I be financially free? calculator too. Results update instantly; nothing is sent to any server.
Target net worth = (annual expenses − current passive income × 12) / expected return × (1 + safety margin): the extra capital that, at that return, covers what your current passive income doesn't cover yet, plus a cushion for surprises (a big repair, a new car...). Use the real return of the type of asset you plan to buy here (rental, dividends, a business...), not the average stock market return: an asset that pays you rent doesn't get sold off bit by bit like a fund portfolio, so there's no need for a separate withdrawal rate: the return itself is your income.
Here's how the estimated time changes if you save or invest more each month:
Want to practice it by playing before you try it with your real money?
🎲 Try to escape the Rat Race in viviGo