Related tool
SaaS Pricing Calculator
Once you know your Business System Target, back into a realistic SaaS price from your revenue goal, costs, and expected customer count.
Use the calculator →Free Tool · Financial Freedom
Freedom Number Calculator
Two numbers stand between you and freedom. Your Escape Number — the lump sum where investment yields pay your lifestyle forever. And your Business System Target — the monthly revenue that funds your life AND builds that lump sum at the same time.
Free Tool 12
Freedom Number Calculator
Walk through 4 steps. Get your two numbers instantly.
1
Lifestyle
2
Allowance
3
Tax Rate
4
Results
What does your ideal lifestyle cost each month?
Add a line item for each major expense. Be honest — this is your desired lifestyle, not your current one.
Lifestyle Cost
$0
How much monthly allowance do you want?
This is your budget for clothes, gadgets, dining out, entertainment, and everything that doesn't fit a fixed line item.
Lifestyle cost
—
+ Allowance
—
= Gross Living Cost
—
What's your effective tax rate?
Self-employed income gets taxed hard. We gross up your costs to find what you actually need to earn before the government takes its cut.
Gross Living Cost
—
Tax rate
40%
Formula
Gross ÷ (1 − rate)
= Net Living Cost (pre-tax)
—
Your two Freedom Numbers
These are the targets that define financial freedom for your specific lifestyle.
Escape Number
—
The lump sum where a 5% annual yield covers your entire lifestyle cost — indefinitely. Hit this and you never have to work again.
Business System Target
—
Monthly business revenue needed to cover your lifestyle AND fund the money system simultaneously. Pay yourself, pay taxes, and build wealth — all at once.
Taxes (40%)
—/mo
Money System (40%)
—/mo
Lifestyle (20%)
—/mo
Net Living Cost
—
× 12 months
—
÷ 5% yield rate
(conservative safe withdrawal)
= Escape Number
—
Inspired by The Millionaire Fastlane by MJ DeMarco. Built by @chams_builds
Inspired by The Millionaire Fastlane by MJ DeMarco. Built by @chams_builds
How the formula works
The Freedom Number Calculator uses a two-system model: a Money System (passive investments) and a Business System (active income engine). The goal is to reach a point where the money system alone can fund your lifestyle, and the business system accelerates how fast you get there.
- Lifestyle Cost — Sum of all your monthly fixed expenses (housing, transport, travel, etc.)
- Gross Living Cost — Add your monthly allowance for misc spending on top of fixed costs.
- Net Living Cost — Gross up for taxes: Gross ÷ (1 − tax rate). This is what you need to earn before taxes.
- Escape Number — (Net Living Cost × 12) ÷ 5%. At 5% annual yield, this lump sum generates enough to cover your lifestyle indefinitely.
- Business System Target — Gross Living Cost × 5. Of this monthly revenue: 40% covers taxes, 40% feeds the money system, 20% pays for lifestyle. Three levers firing simultaneously.
The 40/40/20 split ensures that every dollar through your business is doing double duty — living your life and building your escape.
Related tool
Side Project Time Budget
Knowing your freedom number is step one. Knowing exactly how many builder hours you have each week to get there is step two.
Use the calculator →