🔥 FIRE Calculator
Financial Independence, Retire Early
Expected annual expenses in retirement
Default: 7%
Default: 4% (4% rule)
How to Use This Calculator
Enter Your Age and Retirement Goal
Input your current age and your target retirement age. This determines how many years you have to achieve FIRE.
Enter Financial Information
Input your current savings, annual income, and expected annual expenses in retirement. Your annual expenses determine your FIRE number.
Set Return and Withdrawal Rates
Enter your expected annual return (default 7%) and safe withdrawal rate (default 4% for the 4% rule). The 4% rule means you can withdraw 4% of your portfolio annually.
Review Results
See your FIRE number (amount needed to retire), projected savings, and whether you're on track. Adjust your savings rate or timeline if needed.
Formula
FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate
Future Value = PV × (1 + r)ⁿ + PMT × [((1 + r)ⁿ - 1) / r]
Where:
• PV = Present Value (Current Savings)
• PMT = Annual Savings (Income - Expenses)
• r = Annual Return Rate
• n = Number of Years
Example Calculation:
If annual expenses are $45,000, withdrawal rate is 4%, you have $50,000 saved, save $30,000/year, and expect 7% returns over 15 years:
• FIRE Number = $45,000 ÷ 0.04 = $1,125,000
• Future value of current savings = $50,000 × (1.07)¹⁵ = $137,952
• Future value of annual savings = $30,000 × [((1.07)¹⁵ - 1) / 0.07] = $754,631
• Total projected savings = $137,952 + $754,631 = $892,583
• Shortfall = $1,125,000 - $892,583 = $232,417
About FIRE Calculator
FIRE stands for Financial Independence, Retire Early - a movement focused on aggressive saving and investing to achieve financial independence and retire much earlier than traditional retirement age (often in your 30s, 40s, or 50s). The core principle is saving a high percentage of your income (typically 50-70%) and investing it to build enough wealth to live off investment returns. This calculator helps you determine your FIRE number (the amount needed to retire) and whether you're on track to achieve it.
When to Use This Calculator
- FIRE Planning: Calculate your FIRE number and retirement timeline
- Goal Setting: Set realistic FIRE goals based on your income and expenses
- Progress Tracking: See if you're on track to achieve FIRE by your target age
- Strategy Adjustment: Determine if you need to increase savings or adjust timeline
- Motivation: Visualize your path to financial independence
The 4% Rule
The 4% rule is a guideline that suggests you can safely withdraw 4% of your portfolio in the first year of retirement, adjusting for inflation each year, with a high probability of your money lasting 30 years. This rule is based on historical stock market returns. To calculate your FIRE number, divide your annual expenses by 0.04 (or multiply by 25).
FIRE Strategies
- Lean FIRE: Retiring with minimal expenses (often $25,000-$40,000/year)
- Regular FIRE: Retiring with moderate expenses (often $40,000-$100,000/year)
- Fat FIRE: Retiring with higher expenses (often $100,000+/year)
- Barista FIRE: Achieving partial FIRE and working part-time for benefits/extra income
- Coast FIRE: Having enough saved that you can stop contributing and let compound interest work
Why Use Our Calculator?
- ✅ Accurate Calculations: Uses compound interest formulas for precise projections
- ✅ FIRE Number: Calculate exactly how much you need to retire
- ✅ Progress Tracking: See if you're on track to achieve FIRE
- ✅ Scenario Planning: Test different savings rates and timelines
- ✅ 100% Free: No registration or payment required
Tips for Achieving FIRE
- Maximize Savings Rate: Aim for 50-70% savings rate by reducing expenses and increasing income
- Invest Aggressively: Invest in low-cost index funds for long-term growth
- Minimize Expenses: Reduce lifestyle inflation and focus on value
- Increase Income: Pursue raises, side hustles, or career advancement
- Tax Optimization: Maximize tax-advantaged accounts (401k, IRA, HSA)
- Stay Disciplined: Consistency is key - stick to your savings plan
- Track Progress: Regularly review and adjust your FIRE plan
Frequently Asked Questions
What is FIRE?
FIRE stands for Financial Independence, Retire Early. It's a movement focused on aggressive saving (typically 50-70% of income) and investing to achieve financial independence and retire much earlier than traditional retirement age, often in your 30s, 40s, or 50s.
What is the 4% rule?
The 4% rule suggests you can safely withdraw 4% of your portfolio in the first year of retirement, adjusting for inflation each year, with a high probability of your money lasting 30 years. To calculate your FIRE number, divide your annual expenses by 0.04 (or multiply by 25).
How much do I need to retire early?
Your FIRE number depends on your annual expenses. Multiply your annual expenses by 25 (or divide by 0.04) to get your FIRE number. For example, if you need $50,000 per year, you'd need $1,250,000 saved to retire.
What's a good savings rate for FIRE?
FIRE advocates typically aim for savings rates of 50-70% of income. The higher your savings rate, the faster you can achieve FIRE. A 50% savings rate typically allows retirement in about 17 years, while 70% allows retirement in about 8-9 years.
Is FIRE realistic for everyone?
FIRE requires significant sacrifice and discipline. It's more achievable for high earners, but anyone can work toward financial independence. The principles of saving aggressively, investing wisely, and minimizing expenses can benefit everyone, even if full FIRE isn't the goal.
What if I can't save 50% of my income?
Start where you can - even saving 20-30% puts you ahead of most people. Focus on increasing your savings rate over time by reducing expenses and increasing income. Every percentage point improvement accelerates your path to FIRE.