Use this financial freedom calculator spreadsheet to answer questions like, “When can I retire?” and “When should I retire?” and hopefully understand the difference between them with minimal inputs.
For a given age and life expectancy, along with other standard investment and inflation details, the years to retirement is calculated by determining when the monthly income from the corpus is higher than monthly expenses.
This version is best suited for young earners who are just starting out. An advanced Financial Freedom Calculator More ‘experienced’ earners and/or those with liabilities can try out the Financial Freedom Calculator.
Here is a screenshot (click on it to enlarge)
The calculator computes the inflation-protected monthly income necessary each year in future from the retirement corpus accumulated. When such an income equals monthly expenses, financial freedom is achieved.