No email needed to see your number.
Before taxes. Think about what it would take to cover your lifestyle without a paycheck.
This is the yearly cash flow your investments pay out, as a percent. Use a number you'd be comfortable betting on. Lower is more conservative.
Only count money that's working for you. Leave out your home and emergency fund.
New money you can invest each year from your income.
Your freedom number
$2,500,000
That's what you'd need invested to earn $150,000 a year ($12,500 a month) at 6%.
Your gap
$2,250,000
How far you are from your number today.
Years to freedom
20 years (around 2046)
If you keep adding $50,000 a year and your money earns 6%.
Your path to $2,500,000
Every 1% you earn changes your number a lot. At 5%, you'd need $3,000,000. At 7%, you'd need $2,142,857.
A higher rate shrinks your number. It can also shrink your safety.
That’s the tradeoff hiding in this calculator. Chasing a bigger yield is the fastest way to lower your freedom number, and the fastest way to end up in a deal you shouldn’t be in.
So the real work isn’t finding the highest number. It’s knowing which deals and sponsors can actually deliver steady cash flow, and which ones just look good on paper.
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Common questions
Is this before or after taxes?
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Before. Your actual take-home depends on your tax situation, and some real estate investments come with tax benefits like depreciation. I’m not a CPA, so talk to yours about how this applies to you.
Why does the rate matter so much?
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Because your number is just your income goal divided by your rate. Going from 5% to 6% cuts the money you need by about a sixth. That’s why people get tempted to chase yield.
Does this assume I spend down my principal?
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No. It assumes you live only on the cash flow and leave the original money invested. That’s the more conservative way to plan.
What rate should I use?
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There’s no right answer, and no one can promise you a rate. Use something you’d be comfortable building your life on. If in doubt, go lower.
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For illustration only. This calculator uses the assumptions you enter and is not a projection, promise, or estimate of returns from any Vestus Capital offering. Past performance does not guarantee future results. All investing involves risk, including the loss of principal. This is not tax, legal, or investment advice.