FI Progress Calculator

About the FI Progress Calculator

Track how far along you are toward financial independence by comparing your current net worth to your FI target (annual spending ÷ withdrawal rate).

How to use this calculator

1. Enter your current invested assets or FI savings in the current field.
2. Enter your expected annual spending in retirement.
3. Enter your withdrawal rate, such as \(0.04\) for a \(4\\%\) rule.
4. Read the percentage to see how much of your FI target you have reached.

The formula explained

The calculator uses \(progress = \frac{current}{annual\ spend / wr} \times 100\), which finds the percent of your FI number that your current portfolio already covers. The denominator \(annual\ spend / wr\) is your estimated FI goal based on spending and withdrawal rate.

• progress = your FI progress as a percentage
• current = your current invested amount
• annual spend = the amount you expect to spend each year
• wr = your withdrawal rate, written as a decimal such as \(0.04\)

Step by step method

1. Find your FI number by dividing \(annual\ spend\) by \(wr\).
2. Divide your \(current\) amount by that FI number.
3. Multiply by \(100\) to convert the result into a percentage.

Worked example

Problem. You have \(150000\) invested, you expect annual spending of \(40000\), and you use a withdrawal rate of \(0.04\). What percentage of your FI goal have you reached?

1. First find the FI target, \(40000 / 0.04 = 1000000\).
2. Then divide current assets by the target, \(150000 / 1000000 = 0.15\).
3. Convert to a percentage, \(0.15 \times 100 = 15\).

Tips and common mistakes

• Make sure the withdrawal rate is entered as a decimal, so \(4\\%\) becomes \(0.04\).
• If your spending estimate changes, your FI percentage will change too, because the target amount changes.

Frequently asked questions