Freedom Number

"How much do I need invested before work becomes optional?"

If you spend $60,000 a year, you need $1.5 million: $60,000 × 25 = $1,500,000. The magic integer 25 is the inverse of the 4% safe withdrawal rate (SWR).

— Debugging Your Personal Finance, Chapter 4

Annual expenses ($) Safe withdrawal rate 3.0% (conservative) 3.5% 4.0% (Bengen / Trinity) 4.5% Side income, optional ($/yr)

Based on the 4% safe-withdrawal heuristic (Bengen 1994; Trinity Study 1998). Rule of thumb, not a guarantee.

From Chapter 4 of Debugging Your Personal Finance. Simple calculator · Inputs stay in your browser · Not financial advice.