FIRE (Financial Independence, Retire Early) Calculator
This calculator helps you estimate how much you need to save and invest to achieve financial independence and retire early.
Enter your current financial situation and goals to calculate your FIRE number, projected savings, and years until retirement.
Enter Your Financial Details
Understanding FIRE Calculations
What is the FIRE Number?
Your FIRE number is the total amount of savings you need to achieve financial independence. It's calculated using your annual expenses and a safe withdrawal rate (typically 3-4%). The formula is:
FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate
For example, if you need $40,000 annually and use a 4% withdrawal rate: $40,000 ÷ 0.04 = $1,000,000.
The 4% Rule
The 4% rule suggests you can withdraw 4% of your portfolio annually (adjusting for inflation) with high confidence it will last 30+ years. This is based on historical market performance.
Key Factors Affecting FIRE
- Savings Rate: The percentage of income you save dramatically impacts time to FIRE
- Investment Returns: Higher returns accelerate growth but involve more risk
- Expenses: Lower expenses reduce your FIRE number and required savings
- Withdrawal Rate: More conservative rates (3-3.5%) increase safety but require larger portfolios
FIRE Calculation Examples
Click on an example to see how different scenarios affect FIRE calculations:
Example 1: Aggressive Early Retirement
Scenario: 30-year-old aiming to retire at 45 with modest expenses.
Inputs:
- Current Age: 30
- Retirement Age: 45
- Annual Expenses: $30,000
- Current Savings: $50,000
- Annual Savings: $40,000
- Pre-Return: 7%
- Withdrawal Rate: 4%
Calculations:
- FIRE Number = $30,000 ÷ 0.04 = $750,000
- Projected savings grow to ~$1,050,000 by age 45
- Years to FIRE: 15
Conclusion: This plan succeeds with $300k buffer above the FIRE number.
Example 2: Traditional Retirement with FI
Scenario: 40-year-old planning traditional retirement at 65 with higher expenses.
Inputs:
- Current Age: 40
- Retirement Age: 65
- Annual Expenses: $60,000
- Current Savings: $300,000
- Annual Savings: $20,000
- Pre-Return: 6%
- Withdrawal Rate: 3.5%
Calculations:
- FIRE Number = $60,000 ÷ 0.035 = $1,714,286
- Projected savings grow to ~$2,050,000 by age 65
- Years to FIRE: 25
Conclusion: More conservative approach succeeds with safety margin.
Example 3: LeanFIRE Approach
Scenario: Minimalist aiming for early retirement with very low expenses.
Inputs:
- Current Age: 25
- Retirement Age: 40
- Annual Expenses: $20,000
- Current Savings: $10,000
- Annual Savings: $30,000
- Pre-Return: 7%
- Withdrawal Rate: 4%
Calculations:
- FIRE Number = $20,000 ÷ 0.04 = $500,000
- Projected savings grow to ~$650,000 by age 40
- Years to FIRE: 15
Conclusion: Achievable with disciplined savings and low expenses.
Example 4: FatFIRE High-Income Earner
Scenario: High earner wanting luxurious early retirement.
Inputs:
- Current Age: 35
- Retirement Age: 50
- Annual Expenses: $100,000
- Current Savings: $500,000
- Annual Savings: $80,000
- Pre-Return: 6%
- Withdrawal Rate: 3.5%
Calculations:
- FIRE Number = $100,000 ÷ 0.035 = $2,857,143
- Projected savings grow to ~$3,200,000 by age 50
- Years to FIRE: 15
Conclusion: Requires high savings but achieves luxurious retirement.
Example 5: CoastFIRE Strategy
Scenario: Partial retirement once basic savings target is met.
Inputs:
- Current Age: 30
- Retirement Age: 45 (Coast), 60 (Full)
- Annual Expenses: $40,000
- Current Savings: $200,000
- Annual Savings: $10,000 (until Coast), $0 (after)
- Pre-Return: 6%
- Withdrawal Rate: 4%
Calculations:
- FIRE Number = $40,000 ÷ 0.04 = $1,000,000
- At 45: Portfolio grows to ~$650,000 with contributions
- From 45-60: Grows to ~$1,050,000 without contributions
Conclusion: Can "coast" after 45 by stopping contributions.
Example 6: Late Starter
Scenario: Beginning FIRE journey at age 50.
Inputs:
- Current Age: 50
- Retirement Age: 65
- Annual Expenses: $50,000
- Current Savings: $100,000
- Annual Savings: $40,000
- Pre-Return: 5%
- Withdrawal Rate: 3.5%
Calculations:
- FIRE Number = $50,000 ÷ 0.035 = $1,428,571
- Projected savings grow to ~$1,200,000 by age 65
- Shortfall: ~$228,571
Conclusion: Would need to reduce expenses, work longer, or increase savings.
Example 7: Variable Withdrawal Strategy
Scenario: Flexible spending in retirement.
Inputs:
- Current Age: 35
- Retirement Age: 50
- Annual Expenses: $40,000 (base) + $20,000 (discretionary)
- Current Savings: $300,000
- Annual Savings: $50,000
- Pre-Return: 7%
- Withdrawal Rate: 3.5% (base), flexible above
Calculations:
- Base FIRE Number = $40,000 ÷ 0.035 = $1,142,857
- Projected savings grow to ~$1,800,000 by age 50
- Can withdraw $63,000 (3.5%) or adjust in market downturns
Conclusion: Flexible approach provides safety during volatility.
Example 8: Geographic Arbitrage
Scenario: Retiring in a lower cost-of-living area.
Inputs:
- Current Age: 32
- Retirement Age: 45
- Annual Expenses: $25,000 (abroad vs. $50,000 home)
- Current Savings: $80,000
- Annual Savings: $45,000
- Pre-Return: 7%
- Withdrawal Rate: 4%
Calculations:
- FIRE Number = $25,000 ÷ 0.04 = $625,000
- Projected savings grow to ~$950,000 by age 45
- Years to FIRE: 13
Conclusion: Geographic arbitrage cuts required nest egg in half.
Example 9: Side Income in Retirement
Scenario: Partial income reduces withdrawal needs.
Inputs:
- Current Age: 38
- Retirement Age: 50
- Annual Expenses: $50,000 ($30,000 after side income)
- Current Savings: $200,000
- Annual Savings: $40,000
- Pre-Return: 6%
- Withdrawal Rate: 3.5%
Calculations:
- Effective FIRE Number = $30,000 ÷ 0.035 = $857,143
- Projected savings grow to ~$1,100,000 by age 50
- Years to FIRE: 12
Conclusion: Side income of $20k/year significantly accelerates FIRE.
Example 10: BaristaFIRE Approach
Scenario: Semi-retirement with part-time work for benefits.
Inputs:
- Current Age: 40
- Retirement Age: 50 (full-time), 45 (part-time)
- Annual Expenses: $40,000 ($20,000 after part-time income)
- Current Savings: $300,000
- Annual Savings: $30,000 (until 45), $10,000 (45-50)
- Pre-Return: 6%
- Withdrawal Rate: 3.5%
Calculations:
- FIRE Number = $20,000 ÷ 0.035 = $571,429
- At 45: Portfolio ~$700,000 (can cover $20k withdrawals)
- At 50: Portfolio ~$900,000 (full retirement)
Conclusion: Transition to part-time work at 45 provides flexibility.
FIRE Calculator FAQs
1. What is the 4% rule in FIRE calculations?
The 4% rule suggests you can withdraw 4% of your portfolio in the first year of retirement, adjusting for inflation each subsequent year, with high confidence your money will last 30+ years. It's based on historical market performance studies.
2. How accurate are FIRE projections?
Projections are estimates based on your inputs and assumed returns. Actual results will vary due to market performance, life changes, and unexpected expenses. Conservative estimates (3-3.5% withdrawal rates) provide more safety.
3. What's the difference between LeanFIRE, FatFIRE and BaristaFIRE?
- LeanFIRE: Retiring with minimal expenses (<$40k/year)
- FatFIRE: Retiring with luxurious lifestyle (>$100k/year)
- BaristaFIRE: Semi-retirement with part-time work
4. Should I include Social Security in my calculations?
For early retirement (before 60), it's generally safest to exclude Social Security as a bonus. For traditional retirement ages, you could include reduced benefits (estimate at ssa.gov).
5. How does inflation affect FIRE numbers?
This calculator uses real returns (after inflation) for simplicity. If you input 7% returns, this assumes ~10% nominal returns minus ~3% inflation. Adjust your expense estimates for future inflation.
6. What investment return rate should I use?
Conservative estimates use 5-7% real returns (after inflation). Historical stock market returns are ~7% real, but your actual returns will vary based on asset allocation and market conditions.
7. How can I accelerate my path to FIRE?
Focus on: 1) Increasing income, 2) Reducing expenses, 3) Optimizing savings rate, 4) Tax-efficient investing, and 5) Considering geographic arbitrage or side incomes in retirement.
8. What's the safest withdrawal rate for early retirement?
For retirements >30 years, many use 3-3.5% instead of 4% for added safety. The "Trinity Study" updated for modern conditions suggests 3.3-3.8% for 40-50 year retirements.
9. Should I pay off my mortgage before FIRE?
It depends on your mortgage rate vs. expected investment returns. Many FIRE followers prioritize investments (expected 7% returns) over paying low-rate mortgages (3-4%), but debt-free living reduces risk.
10. How do healthcare costs factor into FIRE?
Healthcare is often the largest unknown for early retirees. In the US, budget $10k-$20k/year until Medicare at 65. Consider ACA plans, health sharing ministries, or geographic arbitrage to lower costs.
