Financial Freedom Calculator
Calculate your financial independence number in USD, EUR, and GBP. Determine how much you need to achieve financial freedom based on your expenses and withdrawal rate.
Step 1: Financial Information
Financial Freedom Number
Your financial freedom number is the amount of money you need to have invested to cover your annual expenses indefinitely using the 4% rule (or your chosen withdrawal rate).
Step 2: Calculation Options
The 4% Rule
The 4% rule is a common retirement planning rule of thumb. It suggests that you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each subsequent year, with a high probability of not running out of money over 30 years.
Formula: Financial Freedom Number = Annual Expenses ÷ Withdrawal Rate
Financial Freedom Calculation Results
Your Financial Freedom Number
Currency Comparison
| Currency | Code | Financial Freedom Number | Annual Withdrawal (4%) | Monthly Withdrawal |
|---|
Exchange Rates
Based on approximate exchange rates: 1 USD = 0.92 EUR, 1 USD = 0.82 GBP. Exchange rates fluctuate daily; these are for illustrative purposes.
Financial Freedom Formulas
The 4% Rule Formula
Formula: Financial Freedom Number = Annual Expenses ÷ Withdrawal Rate
Example: Annual Expenses = $40,000, Withdrawal Rate = 4% (0.04) → $40,000 ÷ 0.04 = $1,000,000
Monthly Withdrawal Calculation
Formula: Monthly Withdrawal = (Financial Freedom Number × Withdrawal Rate) ÷ 12
Example: $1,000,000 × 0.04 = $40,000 annual → $40,000 ÷ 12 = $3,333 monthly
Remaining to Save
Formula: Remaining to Save = Financial Freedom Number – Current Savings
Example: $1,000,000 – $100,000 = $900,000 remaining to save
Currency Conversion
USD to EUR: EUR Amount = USD Amount × 0.92
USD to GBP: GBP Amount = USD Amount × 0.82
Note: Exchange rates are approximate and change daily. Use current rates for precise calculations.
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