The 4% rule suggests you can safely withdraw 4% of your portfolio in the first year of retirement, and adjust that amount for inflation in subsequent years, with a high probability of your money lasting 30 years or more.

How much money do I need to retire?

A common target is 25 times your annual expenses. For example, if you spend $40,000 per year, you would aim for a portfolio of $1,000,000.

Does this calculator account for inflation?

Yes, our projections typically assume 'real' returns (after inflation) to keep the purchasing power constant in today's dollars.

What is a good savings rate for FIRE?

Most FIRE adherents aim for a savings rate of 50% or higher. However, even saving 25-30% can significantly accelerate your path to financial independence compared to the average 5-10% savings rate.

FIRE Calculator | Early Retirement Planner

What is FIRE?

FIRE stands for Financial Independence, Retire Early. It is a movement dedicated to a lifestyle of aggressive saving and investing that allows followers to retire far earlier than traditional budgets and retirement plans would allow. The core principle is simple: save a significant portion of your income, invest it wisely, and live off the returns.

The 4% Rule (Safe Withdrawal Rate)

A core concept of FIRE is the 4% Rule, also known as the Safe Withdrawal Rate (SWR). This principle, derived from the Trinity Study, suggests that you can withdraw 4% of your investment portfolio annually without running out of money over a 30-year retirement. This means you need to accumulate approximately 25 times your annual expenses to achieve financial independence.

For example, if your annual expenses are $40,000, you would need a portfolio of $1,000,000 (25 × $40,000) to be considered financially independent under the 4% rule.

Different Types of FIRE

The FIRE movement has evolved to accommodate different lifestyles and risk tolerances:

Lean FIRE: Achieving financial independence with a minimalist lifestyle. Lower expenses mean a smaller required portfolio, but with less room for luxuries.
Fat FIRE: Retiring with a larger portfolio that supports a more comfortable or luxurious lifestyle. Requires significantly more savings.
Coast FIRE: Saving enough early in your career that you can stop contributing to retirement accounts. Your existing investments will grow to support retirement without additional contributions.
Barista FIRE: Reaching a point where you can work part-time (enough to cover current expenses) while letting your investments grow. It offers more freedom without fully retiring.

How to Use This Calculator

This tool helps you estimate your path to financial independence:

Years to FIRE: How long until your passive income covers your expenses.
FIRE Number: The total amount you need invested (25x annual expenses).
Savings Rate Impact: See how increasing your savings rate drastically reduces your working years.
Projection Chart: Visualize how your wealth grows over time with compound interest.

The Power of Savings Rate

Your savings rate is the most important factor in reaching FIRE. Unlike investment returns, which are largely out of your control, your savings rate is something you can directly influence. A person saving 50% of their income will reach financial independence much faster than someone saving 10%, regardless of their total income. You can use our Percentage Calculator to help analyze your budget ratios.

To understand how your money grows, investigate our Compound Interest Calculator. For simulating loan payments and understanding debt, use our Loan Simulator.

Important Considerations

While the 4% rule is a helpful guideline, it's not guaranteed. Market conditions, inflation, healthcare costs, and unexpected expenses can all impact your retirement. Consider building in a safety margin, maintaining some income sources, or using a more conservative withdrawal rate (3-3.5%) for added security.

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