FIRE Calculator
Calculate your FIRE number, years to financial independence, and retirement age based on your savings rate and expenses.
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FIRE (Financial Independence, Retire Early) is the movement of aggressively saving and investing to retire far earlier than traditional retirement age. Your FIRE number is the portfolio size where you can live off investment returns indefinitely. The classic formula: FIRE number = annual expenses × 25 (based on the 4% safe withdrawal rate).
Example
Savings: $50,000
Formulas
FIRE number = Annual expenses ÷ Withdrawal rate At 4%: FIRE number = Annual expenses × 25 At 3%: FIRE number = Annual expenses × 33 Years to FIRE: iterative monthly compound growth until balance ≥ FIRE number
How the FIRE Number Works
The 4% rule comes from the Trinity Study (1998), which found that withdrawing 4% of a portfolio annually (adjusted for inflation) survived almost all 30-year periods in history. So if you spend $50,000/year, you need $1,250,000 invested. At 7% returns, the portfolio grows faster than you withdraw. The higher your savings rate, the faster you reach FIRE — a 50% savings rate typically means FIRE in about 17 years from zero.
Frequently Asked Questions
What is the 4% rule?
The Trinity Study found that withdrawing 4% of your portfolio in year 1, then adjusting for inflation, succeeded in ~96% of 30-year retirement periods from 1926–1995. It's a guideline, not a guarantee.
What if I retire for 40+ years?
For longer retirements, consider a 3–3.5% withdrawal rate. This requires 29–33× expenses but significantly improves longevity odds.
Does this include Social Security or pension?
No — this assumes you fund retirement entirely from your portfolio. If you have other income sources, reduce your 'annual expenses' by that amount.
What return rate should I use?
7% is a common conservative assumption for a diversified stock/bond portfolio in real (inflation-adjusted) terms. Nominal returns are higher (~10% for US equities) but inflation erodes purchasing power.