Windfall Impact Calculator
Got a bonus, inheritance, or unexpected money? See exactly how many years closer to freedom it brings you.
Why Windfalls Are FIRE Accelerators
A windfall isn't just extra money - it's compressed time. Every dollar invested early gets more years to compound. A $50,000 windfall at 30 could be worth $200,000+ by 60. That's years of your life you don't have to trade for money.
Time Compression
A single windfall can compress years of savings into an instant wealth boost.
Compound Multiplier
Early windfalls benefit from decades of compound growth - 3-4x potential.
Coast FIRE Trigger
Many windfalls can push you to Coast FIRE - no more mandatory saving needed.
Common Windfall Scenarios
Here's how typical windfalls affect a FIRE timeline (assuming $100k saved, $2k/month contributions):
Actual impact varies based on your current savings, contribution rate, and time to FI
How to Handle a Windfall
Pause Before Acting
Wait 30 days before making major decisions. Park it in a high-yield savings account while you plan.
Max Tax-Advantaged Accounts
Prioritize 401k, IRA, HSA. Reduce your taxable income while supercharging retirement savings.
Invest the Rest Simply
Low-cost index funds in a taxable brokerage account. Don't overthink it - time in market beats timing.
Allow Some Joy
Set aside 5-10% for something meaningful. A small celebration won't derail your progress but will make the journey sustainable.
Frequently Asked Questions
What counts as a windfall?
A windfall is any unexpected or one-time lump sum of money: work bonuses, tax refunds, inheritances, gifts, lottery winnings, home sale proceeds, legal settlements, or selling a business.
How much can a windfall really accelerate FIRE?
It depends on timing and amount. Early in your journey, even $10k can save 6-12 months. A $100k inheritance mid-career might save 3-5 years. The earlier the windfall, the more powerful due to compound growth.
Should I invest my windfall all at once?
Statistically, lump sum investing beats dollar-cost averaging about 2/3 of the time. However, if a large lump sum makes you anxious, spreading it over 3-6 months is fine - the psychological benefit of staying invested matters more.
What if I want to spend some of my windfall?
That's completely valid! A common approach is the "play money" rule - invest 80-90% and use 10-20% for something meaningful. Enjoying some now while securing your future is balanced.
Does this account for taxes on the windfall?
No, enter the after-tax amount. Inheritances are often tax-free, but bonuses are taxed as income. For a $10k bonus, you might only keep $6-7k after taxes depending on your bracket.
Related Calculators
Not financial advice. This calculator is for educational purposes only and does not constitute financial, tax, or investment advice. Results are estimates based on the inputs you provide and historical data. Consult a qualified financial advisor for personalized guidance. Read our editorial guidelines.