Goal Calculator
Here you can play around with numbers to find your FIRE goal.
For more information about why and how we created this calculator, check out the blog post 5 Million Kroner in 5 Years
- Step 1: Put in your yearly expenses. This is what you will want your investments to generate yearly to be able to live off.
- Step 2: Choose your returns rate and tax rate. Here we have put in some default values. A 6% rate of return which to some people is a bit conservative. And the tax rate is defaulted to the tax levels in Denmark as of 2021. If you want to edit these numbers for your own country, feel free.
- Step 3: Get your goal number! This is what you would need to save up to be able to retire and live purely off the interest of your investments.
Of course you can also have other forms of passive income that you can use to be able to retire early so you aren’t relying solely on interest from investments. For example, rental properties or book royalties.
As well, this is meant as a really rough estimate. Yearly expenses can change, income and savings amounts can change, plus there is always inflation. You can’t account for everything, but it is always a good start to set a goal.
Savings Calculator
Here, you can calculate how long it will take to reach your savings goal.
Step 1: Put in your initial deposit, monthly contributions and goal number. The initial deposit is how much you have in savings now. The monthly investment is how much you plan to add to your savings each month. The goal is what you calculated using the Goal Calculator.
Step 2: Edit advanced options (optional). Choose your returns rate and tax rate. Again, we have put in some default values. The tax rate is defaulted to 42% tax on the gains as that is the tax level in Denmark as of 2021. For more details please see this post. If you want to edit these numbers for your own country, feel free.
Step 3: Check out the graph! The graph has 3 scenarios. First, just you adding to the savings and getting no returns, this is your principal investment. Second, your savings with returns and tax. Third, your savings with returns and no tax.
The horizontal line represents your goal number, so you can easily see when you will reach it!
Plot
Disclaimer: These calculators are for information purposes only and is not financial advice.