When can I retire? Compound interest is powerful, but it takes time. If you want to retire early, the most important number is often not your investment return. It is your savings rate.
Saving a larger percentage of your income (by spending less) has a double effect: it accelerates your monthly savings rate, while developing the skill to live more efficiently on less, which significantly reduces what you actually need to retire.
As you save and invest, your capital earns money all by itself. Soon, those earnings start earning their own return, creating a compounding snowball of passive income. Once your portfolio's annual returns can cover all of your expenses, you've reached your FI number — you're financially independent and ready to retire.
| End Of Year | Income | Expenses | Annual Investment Return (5%) | Safe Withdrawal Coverage (4%) | Net Worth |
|---|---|---|---|---|---|
| 0 | - | - | - | - | $0 |
| 1 | $60,000 | $36,000 | $600 | 3% | $24,600 |
| 2 | $60,000 | $36,000 | $1,830 | 6% | $50,430 |
| 3 | $60,000 | $36,000 | $3,122 | 9% | $77,552 |
| 4 | $60,000 | $36,000 | $4,478 | 12% | $106,030 |
| 5 | $60,000 | $36,000 | $5,902 | 15% | $135,932 |
| 6 | $60,000 | $36,000 | $7,397 | 19% | $167,329 |
| 7 | $60,000 | $36,000 | $8,966 | 22% | $200,295 |
| 8 | $60,000 | $36,000 | $10,615 | 26% | $234,910 |
| 9 | $60,000 | $36,000 | $12,346 | 30% | $271,256 |
| 10 | $60,000 | $36,000 | $14,163 | 34% | $309,419 |
| 11 | $60,000 | $36,000 | $16,071 | 39% | $349,490 |
| 12 | $60,000 | $36,000 | $18,075 | 44% | $391,565 |
| 13 | $60,000 | $36,000 | $20,178 | 48% | $435,743 |
| 14 | $60,000 | $36,000 | $22,387 | 54% | $482,130 |
| 15 | $60,000 | $36,000 | $24,707 | 59% | $530,837 |
| 16 | $60,000 | $36,000 | $27,142 | 65% | $581,979 |
| 17 | $60,000 | $36,000 | $29,699 | 71% | $635,678 |
| 18 | $60,000 | $36,000 | $32,384 | 77% | $692,062 |
| 19 | $60,000 | $36,000 | $35,203 | 83% | $751,265 |
| 20 | $60,000 | $36,000 | $38,163 | 90% | $813,428 |
| 21 | $60,000 | $36,000 | $41,271 | 98% | $878,699 |
| 22 (FI) | $60,000 | $36,000 | $44,535 | 105% | $947,234 |
Your net worth compounds over the years toward retirement — and beyond. Even after you stop working, your wealth can keep growing as long as your investment returns outpace your withdrawals.
*FI number is the portfolio size needed to support your expenses indefinitely ($36,000 annual expenses / 4% safe withdrawal rate).
This is a simplified calculator that doesn't account for many real-world details. For example, most Canadians can expect to receive some mix of public pensions, such as the Canada Pension Plan (CPP), Old Age Security (OAS), or Guaranteed Income Supplement (GIS). These programs are not included in this calculator, and are considered a nice bonus.
Calculator Assumptions: All figures are in today's dollars. Income, expenses, and investment returns are assumed to be after taxes. Inflation is already factored into the expected return. Your spending in retirement stays the same as it is today, and you will never draw down your principal.
Resources: Networthify (the original calculator) · Shockingly Simple Math (Mr. Money Mustache) · FIRE (Wikipedia) · Safe Withdrawal Rates (Bogleheads) · The 4% Rule (YouTube) · Global Investment Returns Yearbook (UBS)
Disclaimer: This calculator is provided for educational and informational purposes only and does not constitute financial, investment, legal, or tax advice. All charts and projections are for illustrative purposes only and are based on simplified mathematical models that do not account for real-world market volatility, inflation fluctuations, sequence-of-returns risk, or your specific individual circumstances. Parts of this tool were developed with the assistance of artificial intelligence and may contain errors. This tool is provided "as-is" without warranties of any kind. The site owner makes no representations regarding the accuracy, reliability, or completeness of the results, and shall not be liable for any damages or financial losses arising from your use of or reliance on this calculator. Always consult with a qualified, licensed financial professional before making any investment or retirement decisions.