FIRE Calculator
Find your FIRE number — the total savings needed to live off investments indefinitely — and project how many years until you reach financial independence.
💰 Financial Disclaimer: This calculator is for educational purposes only. Consult a qualified financial professional.
How It Works
Divides your annual retirement expenses by the withdrawal rate to get the FIRE number, then simulates monthly investment growth until you hit that target.
Formula
FIRE Number = Annual Expenses ÷ Withdrawal Rate
4% rule: Annual Expenses × 25 = FIRE Number
Example
Annual expenses $40,000, 4% withdrawal rate:
FIRE Number = $1,000,000
With $100K saved + $2K/month at 7% return → ~17 years to FIRE
When to Use This Calculator
Use when pursuing financial independence to identify your target portfolio size and estimate how many years of saving and investing remain.
Common Mistakes to Avoid
- Ignoring sequence-of-returns risk — early retirement market crashes can permanently deplete portfolios.
- Not budgeting healthcare before 65 — private health insurance is expensive.
- Using nominal returns without adjusting for inflation.
Frequently Asked Questions
What is the 4% rule?
Research shows withdrawing 4% of a diversified portfolio annually (adjusted for inflation) has historically lasted 30+ years.
Lean vs fat FIRE?
Lean FIRE targets minimal spending (under $40K/year). Fat FIRE targets higher lifestyle ($80K+/year).
What return to assume?
7% real return is common (10% historical stock return minus 3% inflation). Use 5–6% for conservative estimates.
Is FIRE realistic for average earners?
Yes — it depends more on savings rate than income. Saving 50% of income allows FIRE in roughly 17 years.
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Last Updated: July 4, 2026