Early Retirement Calculator
Calculate when you can achieve financial independence and retire early using the 4% rule
Calculate Your Early Retirement Plan
Your income after taxes and deductions
Your total yearly living expenses
Current amount in your retirement savings
Available for investment each month
Expected annual return (inflation-adjusted)
Annual withdrawal rate in retirement (4% rule)
Early Retirement Plan Results
Passive Income
$0/year
$0/month
Retirement Date
Not calculated
Example Calculation
Example: Young Professional
Net Annual Income: $50,000
Annual Expenses: $40,000
Initial Savings: $10,000
Monthly Savings: ($50,000 - $40,000) ÷ 12 = $833
Expected Return: 5% (inflation-adjusted)
Withdrawal Rate: 4% (Trinity Study)
Results
Required Balance: $40,000 ÷ 0.04 = $1,000,000
Amount to Save: $1,000,000 - $10,000 = $990,000
Time to Retirement: ~28 years
Passive Income: $40,000/year from 4% withdrawal
FIRE Strategy Steps
Calculate FI Number
Annual expenses × 25
Based on 4% withdrawal rule
Maximize Savings Rate
Increase income, reduce expenses
Aim for 20%+ savings rate
Invest Consistently
Low-cost index funds
Diversified portfolio
Monitor Progress
Track net worth growth
Adjust strategy as needed
Early Retirement Tips
4% rule assumes 30+ year retirement
Consider 3-3.5% for early retirement safety
Higher savings rate dramatically reduces time
Plan for healthcare costs before Medicare
Consider geographical arbitrage
Understanding Early Retirement Planning
What is the 4% Rule?
The 4% rule is a guideline that suggests you can safely withdraw 4% of your retirement savings annually without depleting your portfolio over a 30-year period. This rule is based on the Trinity Study, which analyzed historical market data to determine safe withdrawal rates.
Why Early Retirement?
- •Financial independence gives you life choices
- •Pursue passions without income pressure
- •More time with family and personal growth
- •Escape the traditional work-until-65 model
Key Calculations
Required Balance = Annual Expenses ÷ Withdrawal Rate
Monthly Savings = (Income - Expenses) ÷ 12
Time = ln(1 + (Target × Rate) ÷ Payment) ÷ ln(1 + Rate)
Important Considerations
- Inflation: Returns should be inflation-adjusted
- Healthcare: Plan for costs before Medicare eligibility
- Taxes: Consider tax-advantaged accounts
- Flexibility: Be prepared to adjust withdrawal rates