The Paycheck Replacement Formula
The formula is simple: Annual Income Needed / Annual Return Rate = Capital Required. If you need $60,000/year and your investments return 10%, you need $600,000 invested. At 50% return, you only need $120,000.
This is why yield matters so much for financial freedom. Traditional investments require massive portfolios to replace a salary. Higher-yield strategies like DeFi liquidity provision can get you there with a fraction of the capital.
The comparison table above shows this clearly. Use it to set your target, then start building toward it with the strategies in our passive income guide.