If you invest xxx€ a month at xxx% over xx years, you will end up with a final capital of €xxx. These consist of €xxx in deposits and €xxx in interest or capital gains.
Do you know this too? You have a dream or a big wish, but you don't really know what you have to do to achieve it or whether it is even achievable? Our tool helps you plan your financial goals and determine the necessary savings rate. This way you have your goal clearly in mind.
Have you ever wondered how much you need to save today to retire early and be financially free? Our calculator will help you find out how much capital you can save to achieve this goal. We also take a look at what it means to be financially free.
Overview
How does the calculator work?
Our calculator helps you to find out how much money you need to achieve financial freedom in the future. If you want to be financially free, you need to know at the beginning how much money you will need in the future.
How high this sum should be varies greatly and depends entirely on what you want from your future and how high your expectations are.
In order to calculate this for you individually, you need the following:
With all this information, you can calculate how much money you need in total to be financially free in the future.
But are you wondering what does it mean by financial freedom? Let's take a closer look...
What does financial freedom mean?
If you read different blog articles, books and the like, you can find many different definitions of financial freedom. In the end, it is mostly about being independent and not HAVING to work.
However, financial freedom can be understood and lived in very different ways. For example, you may wish to be able to retire at the age of 45. To achieve this, you invest large sums of money year after year and can then live exclusively on your investment income at 45. However, financial freedom can also mean that you enjoy your job, but later on you only want to work part-time so that you can enjoy more free time. You can then use this free time to travel more often or to pursue your passion. You compensate for the losses due to part-time employment with your profits from securities.
The fewer demands you make (i.e. the more modest your lifestyle), the smaller the amount of money you will need for your personal financial freedom. But if you want a high standard of living, you will need more money.
There is no one and only answer to when or from what amount you are financially free. You have to think about what you want from your future and find your own definition of financial freedom. Our calculator will then help you find out how much money you need to reach this financial goal.
How can I achieve financial freedom?
Do you know the saying "All the roads lead to Rome"? On the way to your financial freedom, there are several paths you can take.
In addition to the possibilities of negotiating your salary or questioning your consumption and thus also your expenses, many people also focus on capital gains. This refers to the profits from investments in shares, ETFs & others. Your choice of different investment options determines the expected annual return (interest rate).
If you want to find out for yourself what you should actually invest in, then take a look at our Where Should I Invest tool . Here you will get an overview of which investment opportunities might suit you.
Recap in a Heartbeat
One thing is clear: you can't achieve financial freedom in just a few days. But our calculator will help you find out how much money you need to achieve your dream of financial freedom. Depending on the financial goal you have in mind and the investment horizon you have available, it gives you a first orientation on the way to financial independence.
Other calculators that can help you with this:
Calculator: Plan your financial goals
Calculate initial capital: How much money do you need to invest today for your financial goal?
Calculate final capital: Invest money & then just put your feet up
Compound Interest Calculator: How to take advantage of Compound Interest Concept?
