Financial independence is having enough wealth to sustain your lifestyle without having to actively work. People who are financially independent make their money work for them, either through investments or residual income, such that all their monthly expenses are accounted for.
The key to this approach is lowering your monthly expenses and increasing your investments (and/or residual income). Easier said than done, right? But the first thing to do is to understand how your expenses and income(s) are working for your now.
This calculator was designed to help you understand how introductions or reductions to your monthly budget will impact the date of your financial independence. For example, how much does cutting the grocery budget really impact the big picture?
| Name | Principle Remaining | Interest rate | Months remaining | Monthly payment | Additional monthly payment | Pay off date | Apply to next? | |
|---|---|---|---|---|---|---|---|---|
$ | % | $941.10 | $ | Dec 2051 | ||||
$ | % | $428.98 | $ | Nov 2027 | ||||
$ | % | $433.10 | $ | Sep 2027 |
If you have bi-monthly, quarteryly or annual expenses, just average them for the month. Don't forget to include a monthly budget for fun things like travel!
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These are not your hourly wages or salary. We don't really care about those because the whole point is to get to where we don't need them. This section is for entering any money you make without having to work. For example, a rental propertly, ad revenue from your blog, etc.
| Name | Monthly Amount | |
|---|---|---|
$ |
| Name | Amount | Monthly Contribution | Average Return | Withdrawl Rate | |
|---|---|---|---|---|---|
$ | $ | % | % | ||
$ | $ | % | % |
This is called an amortization table. We show you how your loans are paid down and your investments compound. The two key columns to watch here are when your income matches or exceeds your expenses. Thats when you have become financially independent.
| Date | Amount paid to loans | Balance of loans | Investment contribution | Interest Earned | Total invested | Expenses | Income |
|---|---|---|---|---|---|---|---|
| Apr 2026 | $31,238.26 | $205,357.47 | $24,000.00 | $4,625.49 | $101,625.49 | $53,858.26 | $7,514.30 |
| Apr 2027 | $31,238.26 | $182,546.29 | $24,000.00 | $6,531.00 | $132,156.49 | $53,858.26 | $8,607.55 |
| Apr 2028 | $22,927.83 | $168,364.86 | $32,310.43 | $8,670.13 | $173,137.05 | $45,547.83 | $9,862.76 |
| Apr 2029 | $11,293.24 | $164,145.57 | $43,945.02 | $12,020.47 | $229,102.54 | $33,913.24 | $11,825.19 |
| Apr 2030 | $11,293.24 | $159,743.43 | $43,945.02 | $15,897.41 | $288,944.97 | $33,913.24 | $14,051.47 |
| Apr 2031 | $11,293.24 | $155,150.50 | $43,945.02 | $20,052.91 | $352,942.90 | $33,913.24 | $16,437.85 |
| Apr 2032 | $11,293.24 | $150,358.53 | $43,945.02 | $24,507.10 | $421,395.02 | $33,913.24 | $18,995.88 |
| Apr 2033 | $11,293.24 | $145,358.89 | $43,945.02 | $29,281.55 | $494,621.59 | $33,913.24 | $21,737.97 |
| Apr 2034 | $11,293.24 | $140,142.57 | $43,945.02 | $34,399.40 | $572,966.02 | $33,913.24 | $24,677.41 |
| Apr 2035 | $11,293.24 | $134,700.19 | $43,945.02 | $39,885.46 | $656,796.50 | $33,913.24 | $27,828.46 |
| Apr 2036 | $11,293.24 | $129,021.95 | $43,945.02 | $45,766.32 | $746,507.84 | $33,913.24 | $31,206.40 |
| Aug 2036 | $3,764.41 | $127,075.04 | $14,648.34 | $16,634.61 | $777,790.79 | $11,304.41 | $11,194.34 |