FIRE Calculator — Financial Independence & Early Retirement
Calculate when you can achieve financial independence and retire early. Find your FI number, see your timeline, and compare different FIRE strategies.
How to Use This FIRE Calculator
- Enter your annual income — Your total pre-tax household income.
- Enter your annual expenses — What you spend per year (the lower this is, the faster you reach FIRE).
- Enter your current savings — Total invested assets you already have.
- Set your expected return — Historical stock market average is ~7% after inflation.
- Set inflation rate — Historical average is ~3%.
- Click Calculate — See your FI number, timeline, and year-by-year projection.
What Is FIRE?
FIRE stands for Financial Independence, Retire Early. It's a movement built around the idea that by saving a much higher percentage of your income (typically 50%+), you can achieve financial independence and retire decades earlier than the traditional age of 65.
The core principle is simple: the more you save, the less you need to live on, and the faster your investments grow. This creates a double benefit — you save more money each year AND your target number is lower because your expenses are lower.
The 4% Rule
The FIRE movement is built on the 4% rule (also called the Trinity Study). It states that if you withdraw 4% of your portfolio in the first year of retirement, and adjust that amount for inflation each subsequent year, your portfolio has a very high probability of lasting 30+ years.
(Because 1 / 0.04 = 25)
For example, if you spend $40,000 per year, your FI number is $1,000,000. Once you have $1M invested, you can theoretically live off 4% withdrawals indefinitely.
Types of FIRE
- Lean FIRE: Living on less than $40,000/year. Requires a smaller portfolio (~$1M or less) but means a more frugal lifestyle.
- Regular FIRE: Living on $40,000-$100,000/year. The middle ground that most FIRE seekers target.
- Fat FIRE: Living on $100,000+/year. Requires a larger portfolio ($2.5M+) but maintains a comfortable lifestyle.
- Barista FIRE: Reaching enough savings to cover most expenses, but working part-time for supplemental income and health insurance.
- Coast FIRE: Having enough saved that you don't need to contribute more — just let compounding grow it to your FI number by traditional retirement age.
How Savings Rate Affects Your FIRE Timeline
Your savings rate is the single most important factor in how quickly you reach FIRE:
- 10% savings rate: ~51 years to FIRE
- 25% savings rate: ~32 years to FIRE
- 50% savings rate: ~17 years to FIRE
- 65% savings rate: ~10 years to FIRE
- 75% savings rate: ~7 years to FIRE
This assumes a 5% real return (after inflation). The math is powerful — going from 10% to 50% savings rate cuts your working years from 51 to 17, a reduction of 34 years!
FIRE Calculation Formula
Our calculator uses a year-by-year simulation that accounts for:
- Annual savings from income minus expenses
- Investment growth at your expected return rate
- Inflation impact on expenses (your FI number grows with inflation)
- Income and expense growth over time
Savings = Income × (1 + incomeGrowth) - Expenses × (1 + inflationRate)
Portfolio = (Previous Portfolio + Savings) × (1 + returnRate)
FI Number = Expenses × (1 + inflationRate)^Year × 25
FIRE achieved when Portfolio ≥ FI Number