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FinToolSuite
Updated April 20, 2026 · Planning · Educational use only ·

Financial Independence Progress Calculator

How close you are to financial independence.

Calculate your progress toward financial independence as a percentage of your FI number, given current portfolio and annual expenses.

What this tool does

This calculator shows your financial independence progress by comparing your current portfolio against your FI number—the amount needed to sustain your annual expenses at your chosen withdrawal rate. It estimates two key outputs: your progress as a percentage and the remaining portfolio gap in your currency. Your current portfolio size and annual expenses are the primary drivers of this calculation; the withdrawal rate you select determines how much your portfolio can theoretically support each year. A typical scenario might involve tracking progress toward a target where portfolio withdrawals cover living costs indefinitely. The calculator models standard FI methodology and assumes consistent expenses and withdrawal rates over time. Results are for educational illustration and do not account for inflation, market volatility, tax implications, or changes in circumstances.


Enter Values

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Formula Used
Yearly spend
SWR (entered as a percentage value)
Current portfolio

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

400,000 portfolio, 30,000 annual expenses, 4% withdrawal rate: FI number 750,000. Current progress 53%. Compound growth from here dominates over new savings — a portfolio past 50% FI usually reaches 100% within 10-15 years even without heroic saving.

Quick example

With current portfolio of 400,000 and annual expenses of 30,000 (plus withdrawal rate of 4%), the result is 53.33%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Current Portfolio, Annual Expenses, and Withdrawal Rate. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

What's happening under the hood

Standard FI calculation: FI = expenses / SWR. Progress = portfolio / FI. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

The annual review habit

Plug new numbers in every year. Income changes, expenses shift, markets move. A plan that isn't revisited quietly drifts out of date. This tool is cheap to re-run — so re-run it.

What this doesn't capture

Real plans get re-run against new information every year or two. The result here is a reasonable direction, not a destination. It is a starting point for thinking, not a commitment to a specific future.

Where to go next

This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the fire number calculator, the coast fire calculator, and the f you money calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.

Example Scenario

Based on your £400,000 portfolio and £30,000 annual expenses, you're 53.33% toward financial independence.

Inputs

Current Portfolio:£400,000
Annual Expenses:£30,000
Withdrawal Rate:4
Expected Result53.33%

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes your Financial Independence Number by dividing your annual expenses by your withdrawal rate, expressed as a decimal. This represents the total portfolio value needed to sustain your spending indefinitely under the chosen withdrawal rate assumption. Your progress toward financial independence is then calculated as a ratio of your current portfolio to that FI Number, expressed as a percentage. The model assumes a constant withdrawal rate applied annually and treats your annual expenses as stable over time. It does not account for investment fees, tax implications, inflation adjustments, sequence-of-returns risk, or variations in market performance. The withdrawal rate itself is an input you provide; the calculator does not validate whether it aligns with historical success rates or your specific circumstances.

Frequently Asked Questions

4% withdrawal — still safe?
Debated for long retirements. 3.3-3.5% is more conservative for 40+ year horizons. 4% works for 25-30 year retirements.
Past halfway — when do I hit 100%?
Once at 50% FI, compound growth alone often carries the rest in 10-12 years. Continued saving accelerates.
Include home equity?
Generally no — home isn't investable. Downsizing later can add equity to the FI number, but include only the extractable portion.
Health insurance in expenses?
Critical — often missed. Pre-retirement age health costs are significant. Include fully in annual expenses.

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