Guide
Plan your path to Financial Independence, Retire Early (FIRE). Enter your income, expenses, savings rate, and investment assumptions to calculate your FIRE number, years to financial independence, and the age you could retire early.
What Is the FIRE Number?
Your FIRE number is the portfolio size needed to cover annual expenses indefinitely. The classic rule uses the 4% safe withdrawal rate: multiply your annual spending by 25. For $40,000 per year in expenses, your target is roughly $1,000,000 invested.
Conservative planners use a 3.5% withdrawal rate (about 28× expenses) for extra safety. Aggressive planners may use 4.5% if they have flexible spending and multiple income sources.
Savings Rate Is the Biggest Lever
Your savings rate — the percentage of income you invest — has more impact on your FIRE timeline than investment returns. Increasing savings from 20% to 40% can cut years off your journey even with modest market returns.
Track spending ruthlessly for 90 days to find leaks. Every dollar cut from expenses both accelerates savings and lowers your required FIRE number.
FIRE Variations to Consider
Lean FIRE targets minimal expenses; Fat FIRE allows a more comfortable lifestyle. Barista FIRE means partial work covers basics while investments grow. Coast FIRE means you have enough invested that compound growth alone will reach your number by traditional retirement age.
Use this calculator as a starting point, then stress-test with lower returns and higher inflation to build a margin of safety.
Key Takeaways
- FIRE number ≈ annual expenses × 25 (using the 4% rule).
- Raising your savings rate is the fastest way to reach FI sooner.
- Lower expenses reduce both your target and the time to get there.
- Stress-test assumptions — plan for market downturns and inflation.