Savings Rate to Financial Independence Calculator (Years to Retire)
How many years of saving a given share of your income it takes before your savings can cover your spending, from the savings rate, the real return and the withdrawal rate.
Results
The dashed line marks the value you entered.
What this tool does
The surprising result is that the time to financial independence depends on the savings rate, not on the size of the income: saving 10 % of income takes decades, 50 % about seventeen years at a 5 % real return and a 4 % withdrawal rate, 75 % under ten. Saving more does double work, because it both builds the pile faster and lowers the spending that pile has to support. The model works in real terms, assumes a steady income and spending and a fixed return, and treats the withdrawal rate as a rule of thumb rather than a guarantee.
Formula
years n = ln[(T + s ÷ r) ÷ (c₀ + s ÷ r)] ÷ ln(1 + r), T = (1 − s) ÷ withdrawal rate (s = savings rate, r = real return, money in years of income)
Variables
| Symbol | Meaning | Unit |
|---|---|---|
sr | Share of your income you save | % |
r | Return per year after inflation | % |
w | Safe withdrawal rate | % |
c0 | Savings so far, in years of your income | a |
N | Years until you can live off the savings | a |
N2 | Years if you saved 10 points more | a |
SP | Share of income you live on | % |
TM | Savings needed, in years of your spending | a |
Worked example
- Share of your income you save25 %
- Return per year after inflation5 %
- Safe withdrawal rate4 %
- Savings so far, in years of your income0 a
- Years until you can live off the savings31.9 a
- Years if you saved 10 points more24.6 a
- Share of income you live on75 %
- Savings needed, in years of your spending25.0 a
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.