FIRE Calculator (Financial Independence) 💰

Your FIRE Number
$1,000,000
Years to FIRE
21
Savings Gap
$900,000

What is FIRE (Financial Independence, Retire Early)?

FIRE is a lifestyle movement whose goal is financial independence and retiring early. The strategy involves extreme saving (typically 50–75% of income) and investing those savings in low-cost index funds. Once your investments reach a level where they can cover your annual expenses indefinitely (the 25x rule), you are considered financially independent.

The 4% Rule

The '4% Rule' suggests that if you withdraw 4% of your initial retirement portfolio each year (adjusted for inflation), your money has a very high probability of lasting at least 30 years. To find your 'FIRE Number', multiply your annual expenses by 25 (which is the inverse of 4%).

FIRE Goal Example

  1. Annual Expenses = $40,000
  2. FIRE Number (25x) = $40,000 × 25 = $1,000,000
  3. Monthly Savings = $2,500
  4. Expected Return = 7% annual
  5. Time to reach $1M = ~18.5 years
  6. Safe Withdrawal at 4% = $40,000/year

Frequently Asked Questions

Lean FIRE is retiring on a minimalist budget (e.g., <$40k/year), while Fat FIRE is retiring with a more luxurious lifestyle (e.g., >$100k/year). Barista FIRE involves working a part-time job for health benefits or extra cash while living mostly off investments.
While the 4% rule is a great starting point, many experts suggest a more conservative 3.25% or 3.5% withdrawal rate for early retirees (who might need the money for 50+ years) or during high-inflation periods.
Your savings rate is: (Gross Income - Taxes - Expenses) / (Gross Income - Taxes). Increasing this percentage is the fastest way to accelerate your path to FIRE.

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