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Passive Income Calculator

Find out when you can live off your investments. Simulate portfolio growth, calculate your FIRE number, and see how close you are to financial independence. Interactive chart and year-by-year plan.

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FIRE Simulator
Financial independence
📈
Growth Chart
Portfolio year by year
Instant
100% free, no account
✅ 100% free
🔒 Client-side calculation
🚀 Instant result
🌐 Works worldwide
How It Works
1

Enter your data

Capital, monthly investment, expenses

2

Set expected return

Annual return and time horizon

3

See when you're free

FIRE number, passive income, timeline

Passive Income Calculator

How much you already have invested
How much you can invest each month
Monthly living expenses to cover
Historical global ETFs: ~7% real
How many years to simulate
4% rule: sustainable annual withdrawal
For real-terms calculation
🔥 FIRE Number
Required portfolio
⏰ Years to freedom
 
💰 Passive income/month
At FIRE achievement
Final portfolio
Total invested
Total gains
Final passive income/month
Progress to FIRE 0%
Today Financial independence
Portfolio Invested FIRE line Annual expenses
Year Invested Gains Portfolio Passive income/month Status

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How passive income works

Passive income is money earned without actively working: dividends, interest, rent, royalties. The goal is to build a portfolio large enough to generate income that covers your monthly expenses. When you do, you have achieved financial independence.

Your FIRE number is the portfolio needed to live off investments. It is calculated as: Annual expenses ÷ Withdrawal rate. With the 4% rule, if you spend $24,000/year, you need $600,000. The key is compound interest: small, consistent investments over time build enormous wealth.

The 4% rule (Trinity Study) shows that withdrawing 4% annually from a diversified portfolio lasts at least 30 years in most historical market scenarios. Lower rates (3-3.5%) provide greater safety for longer time horizons.

Time is the most important factor. Starting early, even with small amounts, beats investing large sums later. This calculator shows you exactly when you will reach financial freedom based on your specific situation.

Frequently Asked Questions

What is the FIRE number?

Your FIRE number is the portfolio you need to live off investment returns without touching principal. It is calculated by dividing annual expenses by the safe withdrawal rate (typically 4%). With $2,000/month expenses, your FIRE number is $600,000.

Does the 4% rule really work?

The Trinity Study analyzed 75 years of market data and confirmed that a 4% withdrawal rate survives 30+ years in 95% of cases. For extra safety, consider 3.5% or 3%, especially if you plan a very early retirement.

How long does it take to reach financial independence?

It depends on your savings rate. Saving 50% of income, you can reach FIRE in about 17 years. At 70%, about 8.5 years. The critical factor is not how much you earn, but how much of the gap between income and expenses you can invest.

Doesn't inflation ruin the plan?

This calculator includes inflation. The "real" return (after inflation) is what matters. Historically, a global equity portfolio has returned about 7% real (10% nominal minus 3% inflation). You can adjust the parameters for your scenario.

Where should I invest for passive income?

The most common options: global index ETFs (e.g. MSCI World, S&P 500), dividend ETFs, bonds, real estate. For beginners, a single low-cost global ETF is the simplest and most efficient solution. Diversification reduces risk.

🔗 Related tools

💹 Compound Interest 📈 ROI Calculator 🎯 Savings Calculator 🏠 Mortgage Calculator
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