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FIRE Calculator -- Early Retirement

Calculate your FIRE number and how many years until you can reach financial independence with the 4% rule.

Sources: Trinity Study -- Safe Withdrawal Rates (4% Rule) · Mr. Money Mustache -- The 4% Rule

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How the FIRE Calculator Works

This tool calculates your FIRE number -- the wealth needed to reach financial independence -- and estimates how many years it will take with your current savings rate.

The 4% Rule

The foundation of the FIRE calculation is the 4% rule, derived from the famous Trinity Study (1998). The principle is simple: FIRE Number = Annual Expenses x 25

If your annual expenses are $30,000, the FIRE number is $750,000. With this invested wealth, you can withdraw 4% the first year ($30,000) and adjust for inflation in subsequent years, with a 95% probability that the capital lasts at least 30 years.

How Long Does It Take to Reach FIRE

The time required depends on three factors: Savings rate (the most determinant factor), Capital already accumulated (every dollar already invested reduces time), and Investment returns (a 5% real return halves the time compared to a checking account).

FIRE Variants

The FIRE movement has several "flavors": Lean FIRE (frugal budget), Regular FIRE (average lifestyle), Fat FIRE (comfortable lifestyle), Coast FIRE (enough invested to grow to FIRE number by retirement age without further contributions), and Barista FIRE (work part-time to cover current expenses while capital grows).

Making FIRE Realistic

FIRE is achievable with discipline and a realistic plan. Start by tracking all expenses, maximize your savings rate, invest consistently in low-cost index funds, and use this calculator regularly to track progress toward your goal.

Frequently Asked Questions

What is the FIRE movement?▼
FIRE (Financial Independence, Retire Early) is a movement aimed at achieving financial independence as soon as possible. The idea is to accumulate enough wealth to generate passive income that covers living expenses, allowing you to "retire" from traditional work.
How does the 4% rule work?▼
The 4% rule comes from the Trinity Study (1998): withdrawing 4% of the portfolio the first year and adjusting for inflation in subsequent years, the wealth has a 95% probability of lasting at least 30 years. The FIRE number is therefore annual expenses x 25 (the inverse of 4%).
Is a 5% return realistic?▼
A real return (after inflation) of 4-5% is in line with historical returns of a balanced 60/40 stock/bond portfolio. After taxes (which vary by country), the nominal return needs to be about 7-8% to achieve 5% real with 2% inflation.