FIRE Calculator
Calculate your Financial Independence, Retire Early (FIRE) number and savings plan
Calculate Your FIRE Plan
Your current age in years
Age when you want to achieve FIRE
Your gross annual income before taxes
How much you plan to spend annually in retirement
Money you already have saved for retirement
Expected lifespan (affects retirement duration)
Average annual return on your investment portfolio
Expected annual income growth and inflation rate
Percentage of portfolio to withdraw annually (4% rule)
Quick Preset Options
Your FIRE Plan Results
Formula used: FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate
Calculation: $45,000 ÷ 4% = $1,125,000
4% Rule: You can safely withdraw 4% of your portfolio annually without depleting it
FIRE Strategy Analysis
FIRE Scenarios
Lean FIRE
Target: $500K - $750K
Annual expenses: $20K - $30K
Lifestyle: Minimalist, frugal living
Timeline: 10-15 years typically
Standard FIRE
Target: $1M - $2.5M
Annual expenses: $40K - $100K
Lifestyle: Middle-class comfort
Timeline: 15-25 years typically
Fat FIRE
Target: $2.5M+
Annual expenses: $100K+
Lifestyle: Luxury, high spending
Timeline: 20-30 years typically
FIRE Principles
Save Aggressively
20-50% of income
Much higher than traditional 10-15%
Invest Wisely
Index funds, diversification
Low-cost, broad market exposure
Live Frugally
Minimize unnecessary expenses
Focus on value and priorities
4% Rule
Safe withdrawal rate
Withdraw 4% annually in retirement
FIRE Success Tips
Start early to leverage compound interest
Increase income through skills and side hustles
Track expenses and optimize spending
Consider geographic arbitrage
Automate investments and savings
Balance present enjoyment with future goals
Understanding FIRE: Financial Independence, Retire Early
What is FIRE?
FIRE (Financial Independence, Retire Early) is a movement focused on extreme savings and investment to allow for retirement much earlier than traditional methods. The goal is to accumulate assets equal to 25 times your annual expenses.
The 4% Rule
FIRE Number = Annual Expenses ÷ 0.04
The 4% rule suggests you can safely withdraw 4% of your portfolio annually without depleting it, based on historical market performance and the Trinity Study.
Key Benefits
- •Financial freedom and independence
- •Choice to pursue passions without financial pressure
- •Security against job loss or economic downturns
- •More time for family, travel, and personal interests
FIRE Formula Explained
Saveyear = (Amtreq × (r - g)) / ((1 + r)n - (1 + g)n)
- Saveyear: Annual savings required
- Amtreq: FIRE number (total amount needed)
- r: Investment return rate
- g: Salary growth/inflation rate
- n: Years until retirement
Common Challenges
- ⚠️Requires significant lifestyle changes and discipline
- ⚠️Market volatility can affect timeline
- ⚠️Healthcare costs before Medicare eligibility
- ⚠️Inflation risk over long retirement periods
Remember: FIRE requires careful planning and isn't suitable for everyone. Consider consulting with a financial advisor for personalized guidance.
Investment Strategy
- • Low-cost index funds
- • Diversified portfolio
- • Tax-advantaged accounts first
- • Consistent contributions
- • Avoid emotional decisions
Expense Optimization
- • Housing: biggest expense to optimize
- • Transportation: consider alternatives
- • Food: cook at home, meal prep
- • Entertainment: find free/cheap options
- • Subscriptions: audit regularly
Income Growth
- • Develop high-value skills
- • Negotiate salary increases
- • Side hustles and gig work
- • Real estate investing
- • Start a business