FIRE Calculator
Calculate your Financial Independence Retire Early (FIRE) number. Find out when you can retire and how much you need.
Amount Needed for Financial Independence
$1,000,000
Progress to FIRE
Coast FIRE Number
If you reach this amount now, you can stop saving entirely and still hit your FIRE number by age 65 through investment growth alone. You need $43,663 more to reach Coast FIRE.
Monthly Passive Income at FIRE
Using the 4% withdrawal rate, your FIRE portfolio of $1,000,000 will generate $40,000/year in passive income.
Savings Rate: 30.0%
Good progress! A 25%+ savings rate puts you well ahead of most people. Consider ways to increase this further.
FIRE Strategies
- • The higher your savings rate, the faster you reach FIRE - aim for 50%+ if possible
- • Reducing expenses has a double effect: lower FIRE number AND more savings
- • Consider geographic arbitrage - FIRE in lower cost-of-living areas
- • Use tax-advantaged accounts strategically (401k, Roth IRA, HSA)
- • Build multiple income streams to reduce sequence of returns risk
Related Calculators
About This Calculator
The FIRE movement (Financial Independence, Retire Early) has transformed how millions of people think about work, money, and freedom. Unlike traditional retirement planning that assumes working until 65, FIRE practitioners aim to accumulate enough wealth to make work optional—often by their 30s or 40s. The core principle is elegantly simple: save aggressively, invest wisely, and reach a portfolio size that can sustain your lifestyle indefinitely through investment returns.
Your FIRE number is typically calculated as 25 times your annual expenses, based on the 4% safe withdrawal rule from the famous Trinity Study. If you spend $40,000 per year, your FIRE number is $1,000,000. Once you reach that target, you can theoretically withdraw 4% annually ($40,000) and have a 95%+ probability of your money lasting 30+ years—likely much longer.
This FIRE Calculator helps you determine your exact FIRE number, estimate when you can achieve financial independence, and understand variations like Lean FIRE, Fat FIRE, and Coast FIRE. Whether you are just discovering the FIRE movement or are years into your journey, use this calculator to track your progress and optimize your path to freedom. For more traditional retirement planning, try our Retirement Calculator, and to understand how your investments grow, check out our Compound Interest Calculator.
Trusted Sources
How to Use the FIRE Calculator
- 1Enter your current age to establish your starting point for the FIRE journey.
- 2Input your current savings and investments across all accounts (401k, IRA, brokerage, etc.).
- 3Add your annual income (gross) to calculate your savings rate—a critical FIRE metric.
- 4Enter your annual expenses carefully—this is the most important number as it determines your FIRE target.
- 5Set your monthly savings amount—the difference between income and expenses that you invest.
- 6Adjust the expected return rate (7% is a reasonable long-term assumption for a stock-heavy portfolio).
- 7Select your safe withdrawal rate: 4% is traditional, but 3-3.5% is safer for early retirees with 50+ year retirements.
- 8Review your FIRE number, years to FIRE, and explore Lean FIRE, Fat FIRE, and Coast FIRE variations.
Formula
**FIRE Number Formula:**
FIRE Number = Annual Expenses x (100 / Withdrawal Rate)
At 4% withdrawal rate: FIRE Number = Annual Expenses x 25
At 3.5% withdrawal rate: FIRE Number = Annual Expenses x 28.6
At 3% withdrawal rate: FIRE Number = Annual Expenses x 33.3
**Coast FIRE Formula:**
Coast FIRE Number = FIRE Number / (1 + r)^n
Where:
- r = expected annual return rate
- n = years until traditional retirement age
**Savings Rate Formula:**
Savings Rate = (Annual Savings / Annual Income) x 100The FIRE number formula derives from the safe withdrawal rate concept. If you can safely withdraw 4% annually, you need 25 times your annual expenses (100/4 = 25). Lower withdrawal rates require larger portfolios but provide more safety. The Coast FIRE formula calculates how much you need today for compound growth alone to reach your FIRE number by a future date, typically age 65. The savings rate formula measures what percentage of your income goes toward building wealth—the single most important metric in the FIRE journey.
Understanding FIRE Types: Lean, Fat, Coast, and Barista FIRE
The FIRE Movement Has Many Paths to Freedom
Not everyone pursuing FIRE wants the same lifestyle. The community has developed several variations to match different goals and risk tolerances:
Lean FIRE
- Target: 25x of a minimalist budget (typically $20,000-$40,000/year)
- FIRE Number: $500,000-$1,000,000
- Lifestyle: Frugal living, often in low-cost areas or abroad
- Pros: Achievable faster, teaches contentment
- Cons: Less margin for error, limited lifestyle flexibility
Regular FIRE
- Target: 25x of current comfortable expenses
- FIRE Number: Typically $1,000,000-$2,000,000
- Lifestyle: Maintain current standard of living
- Pros: Balanced approach, sustainable long-term
- Cons: Takes longer than Lean FIRE
Fat FIRE
- Target: 25x of an enhanced lifestyle budget
- FIRE Number: $2,500,000+
- Lifestyle: Premium experiences, nicer home, travel
- Pros: More cushion, ability to splurge
- Cons: Requires higher income or longer accumulation
Coast FIRE
- Concept: Save enough now that compound growth will reach FIRE by traditional retirement age
- Example: $250,000 at age 30 grows to $2M+ by 65 at 7% returns
- Lifestyle: Can stop aggressive saving, work for current expenses only
- Pros: Reduces stress, allows career flexibility early
- Cons: Still requires some work income
Barista FIRE
- Concept: Reach partial FIRE, then work part-time for benefits/income
- Example: $500,000 portfolio + part-time income covering gap
- Lifestyle: Semi-retirement with flexible work
- Pros: Earlier "retirement," healthcare benefits
- Cons: Not fully work-optional
For more on building your investment portfolio, see our Investment Calculator.
The 4% Rule: Foundation of FIRE Math
Why 25x Your Expenses is the Magic Number
The 4% rule emerged from the Trinity Study (1998), which analyzed historical stock and bond returns to determine sustainable withdrawal rates. The key findings:
The Core Principle:
- Withdraw 4% of your portfolio in year one
- Adjust for inflation each subsequent year
- Your portfolio has a 95%+ success rate of lasting 30 years
The Math:
| Annual Expenses | FIRE Number (25x) | 4% Withdrawal |
|---|---|---|
| $30,000 | $750,000 | $30,000/year |
| $40,000 | $1,000,000 | $40,000/year |
| $50,000 | $1,250,000 | $50,000/year |
| $60,000 | $1,500,000 | $60,000/year |
| $80,000 | $2,000,000 | $80,000/year |
| $100,000 | $2,500,000 | $100,000/year |
Important Caveats for Early Retirees:
-
Longer Time Horizons: The original study assumed 30-year retirements. FIRE practitioners might need 50-60 years.
-
Consider Lower Rates:
- 3.5% withdrawal rate: 28.6x expenses (safer)
- 3% withdrawal rate: 33.3x expenses (most conservative)
-
Flexibility Matters: Being willing to reduce spending during market downturns dramatically improves success rates.
-
Healthcare Costs: Early retirees must budget for health insurance before Medicare at 65.
Modern Research Updates: Recent studies suggest the 4% rule remains valid, though some researchers advocate for:
- Variable percentage withdrawal (VPW) strategies
- Guardrails approach (adjust spending based on portfolio performance)
- Bucket strategies for managing sequence of returns risk
The Power of Savings Rate
Why Savings Rate Matters More Than Income
In FIRE, your savings rate determines your timeline more than your income. Someone earning $50,000 who saves 50% will reach FIRE faster than someone earning $200,000 who saves 10%.
Savings Rate and Years to FIRE:
| Savings Rate | Years to FIRE* |
|---|---|
| 10% | 51 years |
| 20% | 37 years |
| 30% | 28 years |
| 40% | 22 years |
| 50% | 17 years |
| 60% | 12.5 years |
| 70% | 8.5 years |
| 80% | 5.5 years |
| 90% | Under 3 years |
*Assuming 5% real returns, starting from $0
Why High Savings Rates Have Double Impact:
-
More Money Invested: Obviously, saving more accelerates wealth building.
-
Lower Expenses = Lower FIRE Number: If you save 70% of your income, you only need to replace 30%. Lower expenses mean a smaller target.
Strategies to Increase Savings Rate:
Income Side:
- Negotiate raises (5-15% increases possible)
- Develop high-income skills
- Start side businesses or freelancing
- Invest in career advancement
Expense Side:
- Housing hacking (rent out rooms, house hack)
- Transportation optimization (used cars, biking)
- Food costs (meal prep, reducing dining out)
- Eliminate lifestyle inflation with raises
The Big Three: Housing, transportation, and food typically consume 70%+ of budgets. Optimizing these has more impact than cutting lattes.
To track your overall finances, try our Budget Calculator and Net Worth Calculator.
Investment Strategies for FIRE
Building a Portfolio to Last Decades
FIRE portfolios must sustain withdrawals for potentially 50+ years. Here are the most common approaches:
The Simple Three-Fund Portfolio:
- US Total Stock Market Index (50-70%)
- International Stock Index (20-30%)
- US Bond Index (10-20%)
This provides global diversification at rock-bottom costs (0.03-0.10% expense ratios).
Asset Allocation by FIRE Stage:
| Stage | Stocks | Bonds | Notes |
|---|---|---|---|
| Accumulation (far from FIRE) | 90-100% | 0-10% | Maximize growth |
| Approaching FIRE (5 years) | 80-90% | 10-20% | Start adding stability |
| At FIRE | 70-80% | 20-30% | Balance growth and preservation |
| Post-FIRE (10+ years) | 60-75% | 25-40% | Traditional glide path |
Key Investment Principles for FIRE:
-
Keep Costs Low:
- Index funds vs. actively managed: 0.03% vs 1%+
- On $1M portfolio over 30 years, 1% extra fees costs $300,000+
-
Tax Optimization:
- Maximize 401(k) for tax deduction
- Use Roth IRA for tax-free growth
- HSA as stealth retirement account
- Tax-loss harvesting in taxable accounts
-
Stay the Course:
- Avoid panic selling in downturns
- Markets have always recovered historically
- Time in market beats timing the market
-
Rebalance Annually:
- Maintain target allocation
- Sell high (winners) to buy low (laggards)
For investment growth projections, use our Compound Interest Calculator.
Common FIRE Mistakes to Avoid
Pitfalls That Derail FIRE Dreams
The path to financial independence has many potential stumbling blocks. Learn from others who have made these mistakes:
Mistake 1: Underestimating Expenses
- Problem: Using current expenses without accounting for healthcare, home maintenance, increased leisure spending
- Solution: Track expenses meticulously for 6-12 months; add 10-20% buffer
Mistake 2: Ignoring Healthcare Costs
- Problem: Health insurance before Medicare (age 65) can cost $500-$2,000/month per person
- Solution: Factor in ACA marketplace costs, consider part-time work with benefits (Barista FIRE)
Mistake 3: Aggressive Withdrawal Rate
- Problem: 5%+ withdrawal rates significantly increase failure probability
- Solution: Use 3.5-4% for 30+ year retirements; build in spending flexibility
Mistake 4: Sequence of Returns Risk
- Problem: A major market crash in early retirement years can devastate portfolio longevity
- Solution: Keep 2-3 years expenses in cash/bonds; have flexible spending plan
Mistake 5: Lifestyle Inflation
- Problem: Expenses grow with income, FIRE number keeps moving
- Solution: Bank raises and bonuses directly to investments; practice lifestyle contentment
Mistake 6: Neglecting Tax Planning
- Problem: Withdrawing from wrong accounts or poor tax timing
- Solution: Understand Roth conversion ladders, capital gains harvesting, ACA subsidy optimization
Mistake 7: Burnout Before FIRE
- Problem: Extreme frugality leads to quitting the journey
- Solution: Balance savings with quality of life; build sustainable habits
Mistake 8: No Post-FIRE Purpose
- Problem: Depression and boredom after leaving work
- Solution: Develop hobbies, relationships, and purpose before retiring
Sequence of Returns Risk Explained
The Biggest Threat to Early Retirees
Sequence of returns risk is the danger that poor investment returns early in retirement can permanently impair your portfolio—even if average returns over the full period are good.
Why Timing Matters:
Scenario A: Good Returns First
- Year 1-5: +15% average → Portfolio grows while withdrawing
- Year 6-10: -5% average → Portfolio has cushion to weather losses
Scenario B: Bad Returns First
- Year 1-5: -5% average → Portfolio shrinks while withdrawing
- Year 6-10: +15% average → Smaller base means less recovery
Both scenarios have the same 5% average return, but Scenario A succeeds while Scenario B may fail.
Real Example:
Starting with $1,000,000, withdrawing $40,000/year:
| Year | Bad Start | Good Start |
|---|---|---|
| 0 | $1,000,000 | $1,000,000 |
| 1 | $860,000 | $1,110,000 |
| 2 | $740,000 | $1,231,000 |
| 3 | $636,000 | $1,364,000 |
| 5 | $472,000 | $1,674,000 |
| 10 | $521,000 | $2,158,000 |
Same average returns, vastly different outcomes!
Mitigation Strategies:
- Cash Buffer: Keep 2-3 years expenses in cash or short-term bonds
- Flexible Spending: Reduce withdrawals during down years
- Bond Tent: Temporarily increase bond allocation around retirement
- Part-Time Work: Barista FIRE provides income during early vulnerable years
- Dividend Focus: Companies rarely cut dividends even when stock prices fall
The FIRE Advantage: Early retirees have more flexibility—you can return to work if needed, which traditional retirees at 65+ often cannot.
Pro Tips
- 💡Track every expense for at least 3 months to get your true spending baseline. Most people underestimate their expenses by 20-30%. This number determines your FIRE target, so accuracy is critical.
- 💡Focus on the big three expenses: housing, transportation, and food. These typically consume 70%+ of budgets. House hacking (renting rooms or multi-family) can cut housing costs by 50% or more.
- 💡Automate your savings by setting up automatic transfers on payday. You can`t spend what you never see. Treat your FIRE savings like a non-negotiable bill.
- 💡Max out tax-advantaged accounts in this order: 401(k) up to employer match (free money), HSA if eligible (triple tax advantage), Roth IRA, then remaining 401(k) space.
- 💡Calculate your Coast FIRE number early. Knowing when you hit Coast FIRE provides psychological freedom and career flexibility, even if you continue saving.
- 💡Build a flexible spending plan rather than rigid budgets. Being able to reduce spending during market downturns by 10-20% dramatically improves portfolio survival rates.
- 💡Keep 2-3 years of expenses in cash or short-term bonds as you approach FIRE. This buffer protects against sequence of returns risk in early retirement years.
- 💡Consider geographic arbitrage—retiring in a lower cost-of-living area or country can reduce your FIRE number by 30-50% while potentially improving quality of life.
- 💡Do not neglect healthcare planning. Budget $500-$2,000/month per person for pre-Medicare coverage. Consider Barista FIRE (part-time work with benefits) as a bridge.
- 💡Run Monte Carlo simulations with different withdrawal rates and market scenarios. Tools like FIRECalc and cFIREsim help stress-test your FIRE plan.
- 💡Build multiple income streams before retiring: dividends, rental properties, royalties, or part-time passion work. This reduces reliance on the 4% rule alone.
- 💡Plan for post-FIRE purpose. Depression and boredom are real risks when work disappears. Develop hobbies, relationships, and meaningful activities before you retire.
Frequently Asked Questions
Your FIRE number is personal and depends entirely on your expected annual expenses. The formula is: Annual Expenses x 25 (for a 4% withdrawal rate). If you spend $40,000/year, your FIRE number is $1,000,000. If you spend $60,000/year, it`s $1,500,000. For early retirees with 50+ year time horizons, consider using 28-33x expenses (3-3.5% withdrawal rate) for extra safety. The "right" FIRE number is one that covers your desired lifestyle sustainably.
