Australian Financial Independence Calculator - Aussie Firebug (2024)

Great effort mate. Just what I’ve been looking for and eager to try it out

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Nice one Firebug. I’d be keen to give your calculator a try. There’s a really great retirement calculator from an US blogger I have been using. It’ll be interesting to compare the two and see the difference the Oz based super numbers make.

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Legend! I need this in my life (where is the ‘enter email’ field?)

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Nice work, looking forward to kick it’s tires.

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Hit me with it. I work with financial spreadsheets for a lot of my job so keen to dig in and help develop this. Just a thought but it might be better served as a google doc?

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I’m a bit confused with the explanation of the arrows (and the video isn’t working, I was hoping to get a bit more out of that). To me it reads as if…

1/ You work, have normal contributions to super (red), and save up until you reach an amount that could cover your living expenses (blue).
2/ You continue to work, now putting that blue money into your red super. “This means that 100% of your after tax income will be going into your Super account until you reach your Super Number.”
3/ You retire at 60, preservation age. “Your Super number is not actually your FI number. Your FI number will be reach in your Super account at the very start of your preservation year.”

I know I’m missing something, but I can’t figure out what.

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Hi,

Thanks for your efforts on this. It is a great idea.

I have noticed a bug. WIthout even changing any values it shows an error on the Step One Tab.

2026 10 $65,000 Err:502 Err:502 Err:502

Also, again without changing any values, why does the super line on the graph not show any increase until 2024? Assuming that at least some of the income is derived from employment, wouldn’t there be a compulsory super contribution?

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I’ve been wanting to see someone put out a calculator for us Aussies for ages, nice work. Looking forward to playing with it.

I’m also keen to see more functionality around super guarantee and salary sacrifice etc in future versions.

Now I just need to figure out how to model the next 2 years of paying off the house prior to investing full bore in ETFs!

Thanks for this mate. Nice video, cool to put a voice to the blog 🙂

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This is awesome, thanks for putting it together! Yay for an Aussie calculator 🙂

Feedback:
– Easy fix, could you resize the comment boxes, currently in excel 2013 the comment boxes cannot display the whole comment.
– Compulsory Super contributions from the employer during step 1 have not been accounted for.
– Interest earned on Super contributions during step 1 has not been calculated.

Keep up the great work. Yell out if you need a hand, I’m happy to try to help.

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Hi Firebug,
I have been looking for an Aussie base Calculator for some time thanks for your work. I noticed a few thing with the calculator.

1. Super doesn’t increase year to year should be at least the 9.5% employer contribution , plus any salary sacrifice.
2. After you start saving super it uses the total post tax number rather than, How much post tax money can you save each year.

Would be happy to test out the next version of the Calculator. let me know.

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Hi mate

Entered my email but it hasn’t come through. Is there a lag between submission and sending?

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Thanks for this!

I’ve been trying to create my own because the US ones did not fit.

This will save heaps of time.

Keep up hard work!

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I was fiddling around with this today, tried to build my own in excel, got frustrated and ended up bashing together a javascipty version (with less functionality) – I’d love to get your opinion on it 🙂

http://firebythirtyfive.blogspot.com.au/2017/01/i-made-calculator.html

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Great calculator!
A couple of things to consider:
1. It would be great to be able to input salary sacrifice amounts and also marginal tax rates for two people.
2. When you reach your pre-super number you dont want to necessarily put in all your income into super. You would need to take into account the concessional contribution cap, the non-concessional contribution cap and that once your super balance reaches 1.6m (indexed), you cant
put in any more non-concessional contributions (from 1 July 2017).
3. It would be good to have an assumption of your income being indexed at x amount eg. 2%pa.

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Thanks so much for your awesome site! Just wondering, is it possible to factor HECs debt repayments into this calculator?

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great work firebug
i plugged my numbers into your calculator and it has told me i have already reached FI , i am still in the salt mine but it did make me smile to know i can go when i have had enough.
one thing about you millennials you guys are so generous with your knowledge i am really impressed i am a gen X and seriously grateful.
letting go of the treadmill is often actually difficult to do even when you have more than you need would be great to get a podcast with someone who has some deprogramming strategies.
mad fientist has touched on it with his podcast with the happy philosopher but i find at 45 its an abyss i still not up to jumping into.

great work

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Hey Firebug,
Thanks for making the Calculator freely available – much appreciated.
Any chance you could do a version for couples?
And while I’m asking… 🙂 is it possible to add a way to pause both savings and super contributions for a period if you are out of the workforce (studying, kids, etc.)
Cheers!

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Hi there.
Will it work if you have much lot more outside super than inside super? Self employed here.
Thanks
Chris

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Hi there,

Dave at Strong Money Australia just referred me to this calculator and it is certainly very interesting and makes a great point. It is really helpful to see Australian specific information on this journey. My husband and I are currently grappling with the question of whether to make additional contributions to super (we are 38) to take advantage of the tax concessions or whether to invest in income producing dividends to be able to build up our investments available for FIRE earlier. I would love to see some thoughts / discussion around this point.

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Hi Firebug,

Thank you so much for creating this. I was trying to work this out myself for about a week and then came across your calculator. Both useful and inspiring. Thanks again.

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Hi Firebug,

Thanks for creating the calculator. Just thought I would point out that most people would have a mortgage during the wealth building phase and the mortgage repayments would likely stop once FIRE. Hence your calculator doesn’t take that into account and just assumes the “mortgage = expense” would continue into the FIRE phase.

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This is awesome mate! Thanks so much for putting this together. I’m really trying to get a more data-driven map for my financial decisions, and this tool is perfect for that.

However I am a little anxious about future changes to super laws, and don’t want to place all my life’s savings in the fickle hands of the government. I will certainly look at upping my contributions to 15% though, it’s great for tax savings.

Keep up the hard work 🙂

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Thank you so much for this calculator! It has been invaluable in my financial planning.

I have a couple of questions:

– I’m wondering why you have updated the calculator to include pre and post tax income per year?

– Is the monthly passive income once you reach fire based on how much I spend a month on current lifestyle including inflation (Tab: Step 1 Pre Super: B12)? Or does your calculations replace the full yearly post tax income?

Appreciate the guidance and keep up the awesome work/blog

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Great article.

My wife and I have been looking for tools to help us make informed decisions about how much we’ll need to save to have the option of retiring early, and have been using the 4% rule as a default.

It’s great to find a tool designed for the Australian context.

Thanks for making it available

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This is a great tool and gives a great insight into a solid retirement plan. I noticed when u submit an email u get currently get version 1.2 of the spreadsheet, a friend sent me link to version 1.4 he found on Reddit. Is that an unofficial biuld? It has extea data and workings tabs to see how it allocates funds over the years

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The most single important assumption in your model would be the Super Preservation age. Although the current table shows everyone who was born after 1964 will be able to access their Super at the age of 60, I notice the age tends to increase by one year for each age group with the same one year older. Do you think there is a possibility that the Super Preservation age may continue to increase over time? If so this will make a big difference for younger generation aiming to retire early and how the want to invest.

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Hi AF

Thank you so much for this, and for all the info you’ve generated on FI. I’m with a DBS scheme for the majority of my super (a hangover from when I had no idea about money. The majority of my super payout will be calculated based on a formula, not subject to compounding interest as per usual super. Not ideal for someone on a path to FI). Is there a way I can input this added lump sum payout at preservation age into the calculator?

Thanks again!

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am already retired and when I put in my details it just gave me the current date and nothing else to do with it.

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also the calculator only showed the cash I have for the start. the super I have was wrong as it was not used. only the cash was used to draw your graps.

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Please send me calculator and keep me in the loop. Many thanks.

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Hi Aussie Firebug,
I downloaded your calculator the other day, and I then made a yearly count-down to see how the balances would work year by year using inflation adjusted future values. When I use your example values saved in the FIRE calculator, in my calculation the money would run out too early during the FIRE period before gaining access to super at 60. And also, the super balance would not last as long as what your calculator suggests.
I have been digging deep in trying to understand where the difference comes from – because my calculator shows future values and yours shows present values, it is not very easy to work out.
However, one question springs to my mind about the way you determine that $1.5M is needed for super balance at age 60 by using the PV function and 4% rule. The function is using the 60K withdrawal value to determine that $1.5M is needed in 23 years time. Shouldn’t that $60K be first adjusted by yearly inflation so that you would use the withdrawal future value?
Anyway, if you were interested, I’d be happy to send my spreadsheet to you in case you could explain the difference between the calculations.
Regardless, your calculator has been a great help in getting me thinking about all sorts of retirement aspects, so thanks heaps.

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Thanks mate you sharing this. Can you explain the household income post tax per year (your youtube clip does not have that row). if I make this amount more the “how long in years will it take you to reach FIRE” increases. I thought that the more post tax income would make my years to FIRE decrease. Not sure if I am doing something wrong?
Again thank you for sharing this tool

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Hi,
I have received the master calculator in my email but after I save it as an MSexcel file, I still can’t make any edits to it.

Can you please tell me where I might be going wrong

Cheers

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Hi. The email/download link doesn’t seem to be working at the moment.

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Hi. I’m trying to access the calculator and also your email updates. Have entered email details a few times and using different browsers. Even though it says success I don’t seem to be receiving anything…
Hoping you can send through to me and add me to your distribution list?

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Hey mate,

Step 2 Super -> cell B7 =PV(‘Step 1 Pre Super’!B10,’Step 1 Pre Super’!B17-1.71,0,-B5)

What’s with the 1.71 years?

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Mate, this is fantastic! Love your blog and realising how effortless achieving FIRE can be!

Quick question, after I reach the pre-super number, you say these savings are used to last until preservation age? But at the same time, all of my income goes into my super account for 3 years to ensure it grows to the accurate number at preservation age right? So i’ll need to continue to work for a few years after I achieve the pre-super number and live off the interest and some of the pre-super savings each year?

Sorry if it sounds like a stupid question, just can get my head around it!

Thanks,

Kurt

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Thanks for getting back to me so quickly!

Your thinking is similar to mine, I would rather build my FI number outside of super (which I should be able to do well before retirement) so I can use it earlier, then have the luxury of some extra funds waiting for me when I turn 60!

Looking forward to continuing the quest for FIRE!

Kurt

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Managed to down load the calculator but unable to fill in the cells.
Need advise thankyou

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Hello.
I like the potential in your calculator.
But, in playing around with the calculator, it appears to me that the Interest Made on the Pre-Super Deposits doesn’t account for the annual income tax payable on the interest which would affect the capital growth rate. Am I right?
I know you’ve already noted the absence of any allowance for concessional super contributions but I was wondering if it would be possible to include a nominal or marginal tax rate field for that Pre-Super Interest Made where it is not savings via superannuation contribution? …Especially for those of us who don’t live in a home that we own!
I appreciate that everyone’s tax circ*mstances are different, but an assumption that interest made pre-super, while still working, is not taxed is unrealistic and makes FIRE seem a lot closer than it is. It would be useful to visualise the impact of, say, a nominal tax rate on earnings.

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Great! But a question: how can this calculator take into account salary sacrifice into super?

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Hi I just got this emailed, but I think there’s an error in the spreadsheet version I have. In B28-29 on page 1, B14, 15-18 on page 2 and B4, 6-9 on page 3. Please help I really want to sort this out for myself! =D
Cheers

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Hi, great work on this calculator exactly what I was looking for! I’m a beginner investor and I had a question around the growth rate field. Is that intended to just reflect capital growth or to include things like dividend payments? Do ETFs and LICs on average return 8-9% inclusive of expected dividend returns or is it prudent to forecast dividends at a different rate?

Great work on all this by the way!

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Thanks for this! The best Australian-based calculator there is.

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You really make it appear really easy with your presentation but I to
find this matter to be actually one thing
that I believe I might by no means understand. It kind of feels too
complex and very extensive for me. I’m looking ahead to your
next publish, I’ll try to get the dangle of it!

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I get it now (after reading through the comments) 🙂 – you continue working after the pre-super number is reached, and you live off your saved amount pre-super and put your whole income into super until you reach your super number. Then you can finally FIRE!

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Hey Firebug, this is awesome.

I am curious, is there some logic behind saving the pre super $$ first then putting money into the super to get your post super number?

Maybe it is possible to calculate an amount to voluntarily contribute to super such that the dates are the same, this would bring the retirement date forward a bit I think maybe

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Just wondering what the life expectancy that is presumed in the calculator. From what I can work out I think it has been set at about 83 years of age. Is there a way to adjust that presumption. Thanks

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This is so motivating. Suddenly I can see when I will be financially independent, and it’s not that far away, and now that I can see the horizon, I don’t mind saving even more! Thanks.

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Hi mate, I entered my email address a few times but never got the email. How can i access this calculator?

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Thanks Aussie Firebug! Really appreciate the time and effort you put in to create this. Bonus gratitude for sharing it freely. I’ve found this and your Net Worth spreadsheet to be really useful for helping me start my FIRE journey 🙂

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Hi,

I have a question. On the super phase, when the money potentially “lasts forever” , are you only drawing on the return from your super investment or are you gradually using up your capital amount ?
If you are not using up the capital amount, would it be possible to put in the calculator the option to retire using both the super returns and capital amount? (assuming you don’t want to live money behind to your family, etc). I presume you would achieve FIRE earlier this way ?
I also would like to know a bit more about what happens later on. Once you retire, do you leave your money on your super account or do you switch it to a more lucrative investment (if there is any?).
Also, I am not sure about the rules; once you retire and start accessing super, would it become tax free (instead of 15%)? And if so, does the calculator takes this in consideration?

Thanks !

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Hi Aussie Firebug, thank you so much for sharing this calculator and also your knowledge to help others achieve FIRE. You’re a good example of how FIREd people can create value by helping others outside of the traditional jobs.

I have some questions I hope you can clarify for me:
1. Am I right to assume that your calculator calculates the numbers based on TODAY’s $ value? I see that you calculate interest by deducting the growth rate by the inflation rate. Does this mean that I should be looking at the age at which I can retire instead of the numbers because the numbers will be much higher when I’m odler. In this case, let’s say my Super has to be $1m for me to live off it forever, but actually that $1m is in today’s dollar value, so could potentially be $1m * 3%^years if I want to determine the actual number to FIRE?

2. Your calculator suggests that between hitting our pre-super number and FIREing, we should put all income into our Super. I’m assuming you didn’t take into account the tax on the amount of contributions above the general concessional contribution cap? It’d be something for me to consider if this is the case.

Thanks again Firebug!

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Hi mate, I believe there is an error with a formula in cell B9 within tab “step 2 super”. The formula calls for cell B24 in tab “start here” (total yearly wages after taxes). Instead, I think it should reference the cell B25 in tab “start here” (total yearly savings), because this is the amount that can be contributed towards the super. As is, I think the calculator underestimates the number of years to FIRE.

What are your thoughts mate?

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I cannot thank you enough! This is exactly what is missing for Australians when we have to calculate when we can retire.

Thank you, thank you, thank you.

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Thanks so much for all the work you’ve put into creating and maintaining this calculator – it’s really helpful!

I have one quick question. I’m receiving a small payrise in the next couple of months and when I update the post tax income amount, the number of years to retirement increases, however in reality this would decrease for me as I could save even more money. Is this because the amount calculated that is required for living expenses is based on the post tax income amount? If so, would it be possible to make the yearly living expenses a field that you can do an optional override on so that we can adjust our living expenses and see what impact this has on the end result?

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Thanks for this! So easy to input and play around with numbers as well as interpret the calculations.

Is there a simple way of calculating known leaner savings/regular contribution years?

E.g. upcoming maternity leave will likely result in no savings for that 12 months; then once at school age, plans to reduce work hours will change potential savings rate. I can change the Pre-Super deposit amount but this has no flow on effect on interest, savings and balance totals.

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Thanks for the calculator!
I think that if the strategy is changed to do Step-2 before Step-1, your time to reach FI will definitively be much shorter.
The reason is the tax advantages of super and the fact that your super money will have more time to compound than your out-of-super investments. What do you think?

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Hey man thanks for your template, but there is 1 thing i am not sure how to reflect this.

For example, I have 2 properties and 1 is invenstment and 1 is my own living, and for my investment, this is paying by the teaneant, the rest is paying by myself, so some of my living expense going to the equity build up, how do i reflect that? Since I am not going to hold the invenstment property forever

But on the sheet this is reducing my saving ability

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Well done, great effort.
I’m wondering if you’ve implemented the ATO limits on super eg maximum $110,000 non-concessional contributions per year ($330k with 3 year bring forward) or concessional limit of $27,500 and 15% contribution tax. Also the General Transfer Balance Cap currently $1,900,000.

I tried to check your formulas but even with the named ranges the excel formulas are difficult to read.

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