Last Updated on
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)
Join our 1500+ Facebook Group on Portfolio Management!
Losing sleep over the market crash? Don't! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free! Did you miss out on the lockdown discount? You can still avail it! Follow instructions in the above link!
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.
Download the financial freedom Calculator
Join our 1500+ Facebook Group on Portfolio Management!
Losing sleep over the market crash? Don't! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free! Did you miss out on the lockdown discount? You can still avail it! Follow instructions in the above link!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!)
About the Author
M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin
Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com
About freefincal & its content policy
Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. We operate in a non-profit manner. All revenue is used only for expenses and for the future growth of the site. Follow us on Google NewsFreefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication.Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via: Feedburner
Our Publications
You Can Be Rich Too with Goal-Based Investing
This book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earnerYour Ultimate Guide to Travel
Free Apps for your Android Phone
- All calculators from our book, “You can be Rich Too” are now available on Google Play!
- Install Financial Freedom App! (Google Play Store)
- Install Freefincal Retirement Planner App! (Google Play Store)
- Find out if you have enough to say "FU" to your employer (Google Play Store)
I believe this calculator projects the age when the monthly returns on investment plus corpus is greater than the monthly expense. It does not consider eating into the corpus during post retirement period.
Their seems to be an error in calculation, for example, if you key in
Total investment till end of this year – 4 cr
Monthly expenses = 2 lacs
Inflation 7%
Post Tax Interest on portfolio = 9%
It returns 13 years.
4cr corpus, 7% inflation and 9% post-retirment return (dont know what you meant) will give monthly income of 2L for about 19Y. So the answer depends on the inputs that you give. If you want income for a longer duration then it will take to retire.
Dear Sir
It would be helpful if you could provide a similar calculator for a middle aged NRI person in 40s. residing in Gulf States. Also a MF recommendation for a NRI in 40s age.
The inputs do not depend on your residential status. I do not provide investment advice.