This calculator simulates your financial journey through two main stages to determine whether you can rely on Bitcoin investments for retirement.

The calculation starts from your current Bitcoin value and projects year by year until you reach your planned retirement age. Each year, it performs two actions:

1. Increase your holdings: It increases your portfolio value based on the “expected Bitcoin growth rate” you provide.

2. New investment: It adds your “annual Bitcoin purchase amount” to the total.

This way, it calculates your final “retirement fund” amount by the time you retire.

Next, it simulates your retirement life. For each year from your retirement age to your expected lifespan:

1. Inflation adjustment: It calculates your annual living expenses for that year and adjusts them based on the “inflation rate” to reflect rising living costs.

2. Smart withdrawal calculation: It determines how much Bitcoin needs to be sold to cover these expenses. Crucially, it also accounts for capital gains tax, ensuring that just enough Bitcoin is sold to cover both your living expenses and the taxes on your investment gains.

3. Growth of remaining funds: Any remaining funds in your portfolio will continue to grow at the expected rate.

Finally, the calculator determines whether your retirement fund can support your entire retirement. If the funds run out before you reach your expected lifespan, the simulation will show that, under the current plan, you are not yet able to retire.

No—it should be used as a starting point, and you should consult a professional to create a personalized plan.