Your Financial Freedom Number in 2026
Calculate your exact number with our [Financial Freedom Calculator](/calculators/finance/financial-freedom-calculator).
The 4% Rule
Your FI Number = Annual Expenses x 25
| Annual Expenses | FI Number |
|---|---|
| $30,000 | $750,000 |
| $40,000 | $1,000,000 |
| $60,000 | $1,500,000 |
| $80,000 | $2,000,000 |
| $100,000 | $2,500,000 |
The 2026 Update: Should You Use 3.3% or 4%?
Morningstar 2026 research suggests 3.3% withdrawal rate is safer for 30+ year retirements due to lower expected future returns.
| Rate | Annual Expenses $60k | FI Number |
|---|---|---|
| 4.0% | $60,000 | $1,500,000 |
| 3.5% | $60,000 | $1,714,000 |
| 3.3% | $60,000 | $1,818,000 |
Use 4% for traditional 30-year retirement. Use 3.3-3.5% if retiring early (40+ year horizon).
Savings Rate: The Biggest Lever
| Savings Rate | Years to FI from Zero |
|---|---|
| 10% | 51 years |
| 20% | 37 years |
| 30% | 28 years |
| 40% | 22 years |
| 50% | 17 years |
| 60% | 12.5 years |
| 70% | 8.5 years |
(Assumes 7% real return, 4% withdrawal rate)
Income That Lowers Your FI Number
| Source | Reduces FI Number By |
|---|---|
| Social Security ($1,500/month) | $450,000 |
| Part-time work ($1,000/month) | $300,000 |
| Rental income ($500/month) | $150,000 |
| Dividend income ($500/month) | $150,000 |
FI Timeline Example
$100,000 saved, contributing $2,000/month, 8% return:
| Target | Time to Reach |
|---|---|
| $500,000 | 10 years |
| $1,000,000 | 17 years |
| $1,500,000 | 22 years |
Related Tools
- [FIRE Number Calculator](/calculators/finance/fire-number-calculator) — Early retirement target
- [Passive Income Calculator](/calculators/finance/passive-income-calculator) — Income streams that lower FI number
- [Retirement Calculator](/calculators/finance/retirement-calculator) — Traditional retirement planning