Windfall Impact on FIRE Timeline
See how receiving a one-time windfall changes the time it takes to reach financial independence.
Earnings & Spending
Your annual after-tax income. Used to estimate how much you can save and invest each year.
How much you spend per year while working.
How much you expect to spend per year in retirement. Used to calculate your FIRE number.
Current Portfolio & Windfall
Total value of your current invested portfolio. Includes retirement and taxable investment accounts.
The after-tax value of the one-time windfall you’re receiving. Examples include an inheritance, bonus, equity payout, or sale proceeds.
Investment Parameters
Expected average annual investment return before inflation.
Expected long-term annual inflation rate.
Percentage of your portfolio you plan to withdraw annually in retirement. Commonly 3–4%, based on historical data (not guaranteed).
FIRE Number
The estimated portfolio value needed to fund your retirement spending indefinitely. Typically calculated as annual retirement spending divided by your withdrawal rate.
Amount you save and invest each year. Calculated as take-home pay minus current spending.
Time to FIRE Comparison
Without Windfall
Without this windfall, you are 11 years, 7 months, 20 days away from FIRE.
With Windfall
With this windfall, you are 10 years, 4 months away from FIRE.
Windfall Impact
This windfall reduces your estimated time to FIRE by 1 year, 3 months, 20 days.
A windfall can change your timeline, but it doesn’t change the need for a plan.
About this calculator
This calculator shows how a one-time windfall affects your timeline to Financial Independence (FIRE) by comparing your projected FIRE date with and without the windfall.
Rather than focusing on how a windfall feels, this tool helps quantify its long-term impact when invested alongside your existing portfolio.
Use this calculator to understand how a lump sum may change your path to financial independence.
What each input means
- Annual take-home pay is your annual after-tax income. Used to estimate how much you can save and invest each year.
- Current annual spending is how much you spend per year while working.
- Retirement annual spending is how much you expect to spend per year in retirement. Used to calculate your FIRE number.
- Current investments is the total value of your current invested portfolio. Includes retirement and taxable investment accounts.
- Windfall value (after tax) is the after-tax value of the one-time windfall you’re receiving. Examples include an inheritance, bonus, equity payout, or sale proceeds.
- Investment growth rate is your expected average annual investment return before inflation.
- Inflation rate is the expected long-term annual inflation rate.
- Safe withdrawal rate is the percentage of your portfolio you plan to withdraw annually in retirement. Commonly 3–4%, based on historical data (not guaranteed).
How do windfalls affect your FIRE timeline?
A windfall is a one-time increase in your net worth. When invested, it can accelerate your progress toward financial independence by increasing the amount of money compounding over time.
This calculator models two scenarios: continuing on your current path without the windfall, and investing the windfall immediately and allowing it to compound.
The difference between these two scenarios shows how much time the windfall may save on your path to FIRE.
The impact depends on the size of the windfall relative to your portfolio, how early in your journey it’s received, your investment returns and savings rate, and your chosen withdrawal rate in retirement.
Key levers that influence windfall impact
- Size of the windfall – Larger windfalls add more capital to compounding.
- Timing – Earlier windfalls have more time to grow.
- Savings rate – Higher ongoing savings amplify the effect of a windfall.
- Investment returns – Higher returns increase the long-term impact, but also uncertainty.
- Withdrawal rate – More conservative withdrawal rates require larger portfolios, changing the magnitude of impact.
Key assumptions & limitations
- Constant returns – Investment returns are assumed to be constant.
- No market volatility modeled – Market volatility and sequence-of-returns risk are not modeled.
- Steady inflation – Inflation is applied at a steady rate.
- Windfall after tax – Taxes on the windfall are assumed to already be accounted for.
- Estimates only – Results are estimates, not financial advice.
This calculator is designed for high-level planning and clarity, not precise forecasting.