Tools
Financial Independence Calculator
Calculate when you're likely to reach financial independence based on a few variable factors.
ASSUMPTIONS
- You intend to live solely off dividends/sell-down
- This is inflation adjusted
- If housing is included, you intend to own a single property and pay the property off fully
OPTIONS
Include:
Adjustment modes:
SUPER
Income:
Super Balance:
How to use Pearler's Financial Independence Calculator
Eager to become financially independent - either a little later in life or ASAP? Pearler's Financial Independence Calculator gives you an estimate of:
- How much you'll likely need to stop working and retire on passive income
- When you could retire
- How much you need to put away or invest to make it all happen
The Financial Independence Calculator can be an incredibly valuable tool if you're working towards FIRE (Financial Independence, Retire Early).
Step-by-step guide to using Pearler's Financial Independence Calculator
1. First up, select the kinds of investments you have - your superannuation, your cash savings and/or any investment properties.
2. Next, plug in some financial basics: your take-home pay, your super balance, your cash savings, your property situation and objectives, how much you can save each year, and any other investment information.
3. You'll instantly receive your results.
What to expect from your results
You'll see how much you might have in different investment categories at different stages.
You'll also get to look at the really vital stuff: when you might be able to retire, your estimated future income, and what you'll need to invest each year to reach your FIRE goals.
You can play around with the different variables to see how they impact your retirement age and targets, and check out key or annual milestones in the Event Table. You may be able to contribute more to your investment portfolio each year, for example, or try and secure a higher income.
Remember, the Financial Independence Calculator provides an estimate of your situation only and relies on certain assumptions around market conditions. Plus, your retirement could look quite different from your projections - so treat the results as a guide only.
If you're ever facing a financial decision, consider reaching out to a licenced financial adviser.
Financial Independence Calculator - FAQ
The information provided in this calculator is only a model to show you how long you need to invest for to achieve your goal, based on several factors. It is not a prediction and relies on assumptions, such as interest rates, that may vary and change the actual outcome.
The results shown are only estimates and are not intended to be relied on when making a financial decision. Consider whether to get advice from a licenced financial adviser before making any financial decision.
What is financial independence?
What is FIRE?
What are the benefits of using the Financial Independence Calculator?
Who should use the Financial Independence Calculator?
What financial information will I need to provide?
When should I use this calculator for optimal results?
What is the best way to reach financial independence before the age of 35 or even 40?
How do I become financially independent by age 25?
Disclaimer
The information provided in this calculator is only a model to show you how long you need to invest for to achieve your goal, based on several factors. It is not a prediction and relies on assumptions, such as interest rates, that may vary and change the actual outcome.
The results shown are only estimates and are not intended to be relied on when making a financial decision. Consider whether to get advice from a licenced financial adviser before making any financial decision.
We encourage you read more about the assumptions and limitations of this calculator by clicking here