Finary Life
Now live: self-directed life insurance with 700+ funds.
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See how much monthly passive income you can generate based on your assets and investments.
The wealth simulator projects your future wealth and the passive income it could generate. First, enter your current wealth and how it is split between stock market assets and other assets (real estate, crypto, savings accounts, etc.).
Then enter how much you save each year and how it is split between these two asset classes, your savings horizon, the expected returns and the tax rate for each class.
Finally, set your withdrawal rate and the inflation rate. A 4% withdrawal rate is a common benchmark, popularized by the FIRE movement.
If you are not sure how much you can invest each year, our budget calculator can help.
The simulator estimates the passive income you will be able to generate at the end of your savings period, also called the accumulation phase. This income depends on your projected wealth, net of tax and adjusted for inflation, and on the withdrawal rate you apply.
The chart breaks down how your wealth grows over time into three areas: your initial wealth, your accumulated contributions and the net interest built up year after year. You also get the gross future value, the share of capital gains and the net value once tax is deducted.
Financial independence means having enough wealth to cover your expenses without depending on your work income.
A few principles help you get closer to it: save regularly and automate your contributions, diversify between stock market assets and other asset classes, reinvest your gains to make the most of compound interest, and limit the weight of tax through suitable accounts.
The 4% rule gives a simple benchmark: a portfolio worth roughly 25 times your annual expenses can theoretically fund your lifestyle. To project how your savings grow over time, combine this simulator with our compound interest calculator.
