FU ratio
AssetsThe numbers shown come from a sample profile for illustration – in the calculator you see your own values.
The financial-independence ratio (FU ratio, from the German "finanzielle Unabhängigkeit") is the most important metric in FireLotse. It shows what percentage of your living costs your wealth could already fund – without you having to work.
For the calculation, FireLotse uses your target withdrawal rate of 4% – the share of your wealth you could sustainably withdraw each year. With wealth of €500,000 that would be €20,000 per year or €1,667 per month. This matches the 4% rule of the Trinity Study (1998), which is considered historically safe over 30 years.
Why not "passive coverage"?FireLotse prefers the FU ratio because it is neutral to the type of investment: accumulating ETFs (which do not pay out dividends) are valued fairly – even though they generate no ongoing income, their value is there.
How it is calculated
FU ratio = ((net worth × 4%) ÷ 12) ÷ (living costs + lifestyle) × 100
Good to know
Milestones:25% = a quarter covered · 50% = halfway · 80% = almost a 4-day week · 100% = full independence