FIRE Calculator
Discover your Financial Independence number and how long it will take to get there.
Your FIRE Projections
Your FIRE Number
$1,125,000
Years Until FIRE
18
Age at Retirement
48
Your current savings rate is 40.0%
What is FIRE?
FIRE stands for "Financial Independence, Retire Early." It's a movement of people dedicated to aggressive saving and investing with the goal of retiring far earlier than traditional timelines. The core idea is to save a large portion of your income to build up a portfolio that can fund your lifestyle indefinitely.
Your "FIRE Number"
This is the amount of money you need to have invested to be considered financially independent. A common rule of thumb is that your FIRE number is 25 times your estimated annual expenses in retirement. This is based on the 4% rule, which suggests you can safely withdraw 4% of your portfolio each year without depleting it.
The Importance of Savings Rate
Your savings rate—the percentage of your after-tax income you save—is the single most important factor in how quickly you can reach FIRE. A higher savings rate not only means you accumulate wealth faster, but it also means you're learning to live on less, which reduces your ultimate FIRE number.
Frequently Asked Questions (FAQ)
Is the 4% rule always reliable?
The 4% rule is a guideline based on historical market performance. While it's a solid starting point, it's not foolproof. Some people opt for a more conservative 3.5% withdrawal rate for a higher chance of success, especially for very long retirements. Factors like market volatility and inflation can impact its effectiveness.
What's the difference between Lean FIRE and Fat FIRE?
Lean FIRE refers to retiring with a smaller portfolio that covers basic living expenses, requiring a very frugal lifestyle. Fat FIRE involves accumulating a much larger nest egg to support a more lavish lifestyle in retirement, with plenty of room for travel, hobbies, and luxuries.
What if my income or spending changes?
That's completely normal. This calculator is a snapshot based on your current numbers. If you get a raise or find ways to cut costs, your timeline to FIRE will likely shorten. Revisit the calculator periodically to update your progress and see how your projections have changed.