FIRE Calculator
Calculate your Financial Independence Retire Early (FIRE) number. Find out when you can achieve financial freedom based on your savings and lifestyle.
Your Financial Details
Your FIRE Number (Regular FIRE)
Based on $50,000/year at 4% withdrawal
Keep saving! You need $1,150,000 more.
FIRE in 21 years (age 51)
What is FIRE?
FIRE stands for Financial Independence, Retire Early. It's a movement focused on extreme saving and investing to achieve financial independence and the option to retire much earlier than traditional retirement age. The core principle is to save aggressively (often 50-70% of income) and invest in low-cost index funds.
The FIRE Formula: FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate (typically 4%)
Types of FIRE
| Type | Multiplier | Description |
|---|---|---|
| Lean FIRE | 0.7x expenses | Minimalist lifestyle with reduced spending. Budget tightly. |
| Regular FIRE | 1x expenses | Maintain current lifestyle. Standard FIRE approach. |
| Fat FIRE | 1.5x+ expenses | Comfortable or luxury lifestyle. Higher target, more security. |
| Coast FIRE | 0.5x expenses | Have enough invested that compound growth will fund traditional retirement. Can work part-time. |
The 4% Rule
- •Withdraw 4% of portfolio in year one of retirement
- •Adjust for inflation each subsequent year
- •Based on the Trinity Study (1998)
- •95% success rate over 30-year periods historically
- •Requires 25x annual expenses saved (100% ÷ 4%)
Key Considerations
- !Healthcare costs before Medicare eligibility
- !Sequence of returns risk in early years
- !Longer retirement = more years to fund
- !Inflation can erode purchasing power
- !Consider 3-3.5% withdrawal for longer retirements
Savings Rate Impact
| Savings Rate | Years to FIRE | Notes |
|---|---|---|
| 10% | 51 years | Standard retirement timeline |
| 25% | 32 years | Good savings discipline |
| 50% | 17 years | Aggressive FIRE approach |
| 70% | 8.5 years | Extreme FIRE approach |
| 85% | 4 years | Ultra-frugal lifestyle required |
* Assumes 5% real return (after inflation) and starting from $0 savings.
Strategies to Reach FIRE Faster
- 1.Increase savings rate: The single most important factor. Cut expenses or increase income.
- 2.Optimize housing: Consider house hacking, downsizing, or relocating to lower cost areas.
- 3.Avoid lifestyle inflation: Keep expenses stable as income grows.
- 4.Maximize tax advantages: Use 401(k), IRA, HSA, and Roth accounts effectively.
- 5.Keep investment fees low: Use index funds with expense ratios under 0.1%.
- 6.Consider geographic arbitrage: Work in high-income areas, retire in lower-cost locations.