Financial Independence calculator
Financial Independence is the point where passive income pays for your whole lifestyle. Coverage is how far along you are today; your FI Date is when you get there.
- Runs in your browser; nothing is stored
- Educational, not advice
Financial Independence
Sample household- Coverage today
- 58%
- of lifestyle paid by passive income
- FI Date
- 2033
- in 7 years
- Gap today
- $76,000
- per year
- Capital to close it
- $1.3M
- at a 6.0% yield
Passive income covers 58% of your lifestyle today and all of it in 2033, 7 years from now, at these inputs.
- Spending 10% less moves your FI Date 2 years sooner.
- Investing $25,000 more a year moves it 1 year sooner.
Show the math
- Coverage todayPassive income ÷ lifestyle cost57.8%
- Gap todayLifestyle cost − passive income$76,000
- Capital to close the gapGap ÷ yield on new investments$1,266,667
- Each yearPassive income × (1 + growth) + invested × yield; invested includes last year’s passive income
- FI DateFirst year passive income ≥ lifestyle cost × (1 + inflation)^years2033
| Year | Passive income | Lifestyle cost | Coverage |
|---|---|---|---|
| 2026 | $104,000 | $180,000 | 58% |
| 2027 | $118,240 | $185,400 | 64% |
| 2028 | $133,690 | $190,962 | 70% |
| 2029 | $150,454 | $196,691 | 76% |
| 2030 | $168,643 | $202,592 | 83% |
| 2031 | $188,377 | $208,669 | 90% |
| 2032 | $209,789 | $214,929 | 98% |
| 2033 | $233,021 | $221,377 | 105% |
| 2034 | $258,228 | $228,019 | 113% |
| 2035 | $285,578 | $234,859 | 122% |
| 2036 | $315,252 | $241,905 | 130% |
- Before taxes on passive income. Social Security, pensions, sales and market swings are left out.
- New money is invested at the end of each year and starts paying the next.
- Educational, not advice.
How this calculator works
Coverage is passive income divided by lifestyle cost. It’s the same measure WealthCEO puts at the top of every household’s dashboard.
To find your FI Date, the calculator steps forward a year at a time. Lifestyle cost grows with inflation. Passive income grows on its own (rent increases, for example), plus the yield on whatever you invest that year. Your FI Date is the first year passive income catches lifestyle cost.
It leaves out taxes on passive income, Social Security and pensions, the sale of a business or property, and market swings. WealthCEO’s simulators handle those; this keeps the core idea visible.
Questions
What counts as passive income?
Income that doesn’t need your time to keep arriving: net rents, distributions from businesses you don’t run day to day, dividends and interest. Salary and active business income don’t count.
Why does lifestyle cost grow every year?
Because prices do. A lifestyle that costs $180,000 today costs more in ten years, so the target moves. Set inflation to 0% to see the date in today’s dollars.
Should I reinvest passive income?
The switch shows the difference. Reinvesting means you live on earned income and put every passive dollar back to work until you reach Financial Independence. Whether that fits your household is a planning decision; this tool is educational, not advice.
More free tools
Educational, not advice. These tools use simplified models; take decisions to your CPA, attorney or adviser.