FIRE Calculator
Calculate your Financial Independence number and how many years until you can retire early based on your savings rate and investments.
How the FIRE Calculator Works
This calculator determines your Financial Independence number — the portfolio size needed to cover your annual expenses using only investment returns. It then projects how many years of saving and investing it will take to reach that number, based on your current savings rate and expected returns.
The FIRE Number Formula
Your FIRE number equals your annual expenses divided by your safe withdrawal rate. At the default 4% withdrawal rate, you need 25 times your annual expenses. For example, if you spend $40,000 per year, your FIRE number is $1,000,000. The calculator then uses compound growth with regular contributions to determine when your portfolio reaches that target.
The Power of Savings Rate
Your savings rate is the single most important factor in reaching FIRE. It works doubly in your favor: saving more means you invest more AND you prove you can live on less, which lowers your FIRE number. Someone saving 50% of their income can reach FIRE in roughly 17 years regardless of income level, while someone saving 20% needs about 37 years.
Making FIRE Realistic
Consider healthcare costs carefully — they're a major expense before Medicare eligibility at 65. Build in a buffer above your FIRE number for unexpected expenses. Having flexible income sources (part-time work, rental income, side projects) adds security. Remember that your spending may change in retirement, and plan for both inflation and sequence-of-returns risk in early years.
Frequently Asked Questions
What is the FIRE movement?
FIRE stands for Financial Independence, Retire Early. It's a lifestyle movement focused on aggressive saving and investing — typically 50-70% of income — to build enough wealth to retire decades earlier than traditional retirement age. The goal is reaching a portfolio large enough to sustain your living expenses indefinitely.
What is the 4% rule?
The 4% rule, based on the Trinity Study, suggests that you can safely withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, with a very high probability of your money lasting 30+ years. Your FIRE number is your annual expenses divided by 0.04 (or multiplied by 25).
What are the different types of FIRE?
LeanFIRE targets a frugal lifestyle with annual expenses under $40,000. Regular FIRE aims for a comfortable middle-class lifestyle. FatFIRE targets a luxurious lifestyle with $100,000+ in annual spending. BaristaFIRE means having enough to cover most expenses but working part-time for extras and health insurance.
Is a 4% withdrawal rate still safe?
The 4% rule has been debated, especially with changing market conditions. Some experts now recommend 3.5% for extra safety, especially for early retirees with 40-50 year time horizons. Others argue that flexibility in spending during down markets makes 4% or even higher rates viable. This calculator lets you adjust the rate.