FIRE Calculator
The FIRE (Financial Independence, Retire Early) Calculator helps you determine when you can achieve financial independence and retire early. The FIRE movement is based on the principle of saving and investing a high percentage of your income to build a portfolio that covers your living expenses. The key rule is the 4% rule: you need 25 times your annual expenses invested to be financially independent. This calculator factors in your current savings, annual savings rate, expected return, and annual expenses to project your FIRE number and timeline.
Formula
FIRE Number = Annual Expenses × 25 Years to FIRE = log(FIRE Number ÷ Current Savings) ÷ log(1 + annual return rate) Safe Withdrawal Rate = 4% of portfolio per year
Example
If your annual expenses are $40,000, current savings are $100,000, and you save $30,000 per year at 7% return: FIRE Number = $40,000 × 25 = $1,000,000 With $30,000 annual savings at 7% return, it takes approximately 18 years to reach $1,000,000. After FIRE, you can withdraw $40,000 per year (4% of $1M) indefinitely.
How to Use
- Enter your current annual expenses
- Input your current savings/investments
- Enter your annual savings rate (how much you save per year)
- Set your expected annual investment return (6-8% is typical)
- Review your FIRE number and years to financial independence
Frequently Asked Questions
What is the 4% rule in FIRE?
The 4% rule states that you can withdraw 4% of your investment portfolio annually and it will last 30+ years. This is based on the Trinity Study. Your FIRE number is 25× your annual expenses (100% ÷ 4% = 25).
How much do I need to save for FIRE?
The savings rate depends on your target retirement age. Saving 50% of your income can achieve FIRE in about 17 years. Saving 75% can achieve it in about 7 years. The higher your savings rate, the faster you reach FIRE.
Is the 4% rule still safe?
The 4% rule was based on historical data. Some studies suggest 3.5% is safer given current market conditions and longer retirement periods. Consider a more conservative withdrawal rate for early retirees with 40+ year horizons.
What is leanFIRE vs fatFIRE?
LeanFIRE means living on minimal expenses (e.g., $25,000/year). FatFIRE means a comfortable lifestyle (e.g., $100,000+/year). Your FIRE number scales accordingly: leanFIRE needs ~$625,000, fatFIRE needs ~$2,500,000+.
Should I include my home in my FIRE number?
Generally, no. Your home is not a liquid asset that generates income. Include only investable assets (stocks, bonds, index funds). If you plan to downsize, you can include the expected surplus.