Financial Freedom Calculator

Your FIRE number is the portfolio size that can sustain your annual expenses indefinitely, based on the 4% withdrawal rule. Multiply your expected annual spending by 25: if you need €3,000/month (€36,000/year), your target is €900,000. The figure feels large, but with compound growth and consistent investing it is reachable over 15–25 years for many people.

The 4% rule comes from the Trinity Study, which analysed US market data from the 1920s onwards. It found that a 4% annual withdrawal from a diversified portfolio has historically not depleted funds over 30 years. In Germany, higher tax on investment income and the possibility of lower equity market returns relative to the US lead some planners to use 3–3.5% as a more conservative assumption for early retirees.

The most powerful levers are increasing income (career progression, freelance work, or switching roles), reducing large fixed costs like housing, and ensuring your savings are invested rather than sitting in cash. Savings rate — the percentage of income you invest — has a bigger impact on your timeline than the investment return itself.

Yes, though it requires planning around Germany’s specific tax structure. High marginal rates and social contributions reduce take-home pay, but Germany also has strong public services that reduce some costs (healthcare, education). Tax-efficient investing through broad ETFs, the option of property depreciation deductions, and the statutory pension as a fallback all factor into the calculation.

Rental income reduces how much your investment portfolio needs to generate. One property producing €800/month net means you need €240,000 less in your portfolio (€800 × 12 ÷ 0.04). A fully paid-off property also provides income that tends to grow with inflation — a useful hedge against rising costs in retirement.