Freedom Number Calculator guide
Your freedom number is the investable asset base needed to cover desired spending after subtracting passive income, side income, or other reliable non-job income.
Example scenario
If you want $4,000 per month and already have $500 in monthly passive income, your portfolio only needs to cover $3,500 per month. At a 4% rate, the freedom number is about $1.05 million.
Calculation method
The timeline compounds current assets and monthly investing until the freedom number is reached.
Common mistakes
Do not count unstable income unless you are comfortable relying on it. A lower rate creates a higher target but more margin.
How to use this calculator
- Enter realistic values that match your current situation.
- Press Calculate to refresh the estimate.
- Compare the main result with the supporting details in the result panel.
- Change one input at a time to see which variable affects the result most.
FAQ
How is this different from FIRE number?
It subtracts existing passive income first, so it is better for people with rentals, dividends, side income, or part-time work.
Can this include dividend income?
Yes, if it is reasonably stable. Enter expected monthly dividend income as passive income.
What if my passive income covers all spending?
Your income gap becomes zero, meaning you are already at this version of financial freedom.