Financial Independence Simulator
Estimate the capital that would cover your annual expenses at a given withdrawal rate, and the number of years of saving needed to reach it.
Your settings
Results update with each entry.
What you spend over a year, in today's euros.
Share of capital withdrawn each year. The "4% rule" is a historical rule of thumb, not a guarantee.
Real yield after inflation: all amounts remain in today's euros.
- Estimated time to reach the target capital
- 22 years years and 1 months
- Target capital: €750,000, in today's euros.
- Target capital
- €750,000
- Expenses ÷ 4.0%
- Already saved
- 7%
- From target
- Savings contributed by then
- €397,500
Capital growth
Capital at year-end, in today's euros.
- Capital
- Target capital
Breakdown by year
| Year | Contributions paid in | Capital | Share of target |
|---|---|---|---|
| 1 | €18,000 | €70,328 | 9% |
| 2 | €36,000 | €91,468 | 12% |
| 3 | €54,000 | €113,455 | 15% |
| 4 | €72,000 | €136,321 | 18% |
| 5 | €90,000 | €160,101 | 21% |
| 6 | €108,000 | €184,833 | 25% |
| 7 | €126,000 | €210,554 | 28% |
| 8 | €144,000 | €237,304 | 32% |
| 9 | €162,000 | €265,123 | 35% |
| 10 | €180,000 | €294,056 | 39% |
How this calculation is made
The target capital is the amount whose annual withdrawal at the chosen rate would cover your expenses:
Target capital = annual expenses / withdrawal rate
At a 4% rate, the target capital equals 25 times annual spending. This "4% rule" is a heuristic based on work using historical U.S. market data (William Bengen, 1994): it describes what would have worked in the past and does not guarantee that a capital sum will last in the future.
The timeframe is the number of months needed for current savings, plus the monthly savings paid at month-end and compounded at the real return, to reach this target capital.
- The yield entered is real, i.e., after inflation: all amounts are expressed in today's euros.
- It is assumed to be constant, whereas markets go through years of decline.
- Taxes, fees and changes in your spending are not taken into account.
The results are simulations based on the stated assumptions. They do not predict future results and do not take your personal situation into account. The information published on TimeLinq is for informational purposes only and does not constitute investment advice. Investing involves a risk of capital loss.