Financial freedom is not a feeling, it is a number: the capital whose income covers your expenses. Enter your amounts below to find out that number and how many years it will take you to reach it. Nothing is saved: the calculation runs in your browser.
The calculator
How the calculation works
The capital needed is calculated as: (monthly spending − other income) × 12 ÷ withdrawal rate. With €2,500 of spending and a 4% rate, you need €750,000; with 3.5%, about €857,000.
The time needed simulates the growth of your capital month by month: it earns the chosen return, and you add your savings.
The 4% rule, and why to be more cautious
The 4% rule comes from US studies in the 1990s: by withdrawing 4% of a portfolio of stocks and bonds in the first year, then the same amount adjusted for inflation, capital historically lasted at least 30 years in the vast majority of cases.
Three reasons to choose a lower rate:
- freedom that starts early must last more than 30 years;
- European markets have historically had lower returns than the US market;
- tax reduces what you receive, for example Belgium's 10% capital gains tax since 2026 (see crypto and stocks).
Levers to get there faster
- Reduce your target spending: it is the double lever, because it lowers the goal and increases savings.
- Save more thanks to side income.
- Add income that does not depend on stock market capital: net rent (buy to let) or dividends from a business you bought often yield more than 4% of what they cost. Enter them under ‘income that continues without working’.
Future returns are unknown. Redo this calculation every year with your real figures: regular adjustment is what gets you to the goal.
Where to find these services
- MyPension.beTo find the Belgian pension to enter in the calculator
- Wikifin (FSMA)Neutral tools and tips for saving and investing (French and Dutch)
Links provided for information, with no partnership. Always check a provider's terms and authorisation before committing.
Test yourself
3 questions to check what you remember. Click an answer: the explanation appears straight away.
Question 1 of 3With the 4% rule, how much do you need to spend €2,000 a month?
€2,000 × 12 = €24,000 a year, divided by 4% = €600,000.
Question 2 of 3Why choose a withdrawal rate lower than 4%?
The original studies covered 30 years and the US market.
Question 3 of 3Which lever acts twice on your goal?
Less spending means both a lower goal and more savings each month.
Frequently asked questions
How much do you need to be financially free?
A simple estimate is to divide your annual spending by your withdrawal rate. At 4%, that comes to 25 times your annual spending; at 3.5%, about 28.5 times.
What is the 4% rule?
A rule from US studies: withdrawing 4% of your portfolio in the first year, then the same amount adjusted for inflation, historically allowed capital to last at least 30 years in the vast majority of cases.
Which return should you use in the calculation?
A real return, after inflation. For a diversified portfolio, 3 to 5% a year is a reasonable assumption; use a lower value if you want to be cautious.
This article is educational and is not personal investment, tax or legal advice. Figures change: check them with the sources cited or a licensed professional before deciding. Read the full disclaimer.