FIRE Calculator
Calculate when you can achieve Financial Independence and Retire Early. Enter your income, expenses, savings, and investment returns to see your FIRE date.
How the FIRE Movement Works
FIRE (Financial Independence, Retire Early) is based on a simple principle: save and invest aggressively until your investment portfolio generates enough passive income to cover your living expenses forever. The standard target is 25 times your annual expenses, based on the "4% rule" from the Trinity Study. This means if you spend $40,000 per year, you need $1,000,000 invested to achieve FIRE. The higher your savings rate, the faster you reach FIRE — someone saving 50% of their income can retire in roughly 17 years regardless of salary level, while someone saving 25% takes about 32 years.
Types of FIRE: Lean, Fat, Barista, and Coast
Lean FIRE means achieving financial independence on a minimal budget, typically under $40,000/year in expenses — model your specific Lean FIRE number with our dedicated Lean FIRE calculator. Fat FIRE targets a more comfortable lifestyle with $100,000+ in annual spending. Barista FIRE means having enough invested that you only need a low-stress part-time job to cover remaining expenses and health insurance. Coast FIRE means you have enough saved that compound growth alone will reach your retirement target by traditional retirement age — see the Coast FIRE calculator. Each variation makes the FIRE concept accessible at different income levels and lifestyle preferences.
The 4% Rule and Safe Withdrawal Rates
The 4% rule suggests you can withdraw 4% of your portfolio in the first year of retirement and adjust for inflation annually with a very low chance of running out of money over 30 years. For early retirees with 40-50 year horizons, many experts recommend a more conservative 3.5% or even 3% withdrawal rate. Your FIRE number equals your annual expenses divided by your withdrawal rate: $50,000 / 0.04 = $1,250,000. At 3.5%, the same expenses require $1,428,571. The difference is meaningful but provides extra safety for decades-long retirements.
How to Increase Your Savings Rate
Your savings rate is the single most important variable in the FIRE equation. Housing is typically the largest expense — house hacking, geographic arbitrage, or downsizing can free up 20-30% of income. Transportation is second — driving used cars, biking, or using public transit saves significantly. Food is third — meal prepping and reducing dining out saves hundreds monthly. On the income side, negotiating raises, switching jobs every 2-3 years, and developing side income streams all accelerate FIRE. Even small improvements compound dramatically: increasing your savings rate from 20% to 30% can cut years off your timeline.
Frequently Asked Questions
What is the FIRE movement?
FIRE stands for Financial Independence, Retire Early. It is about saving and investing aggressively (typically 50%+ of income) so your portfolio generates enough passive income to cover expenses, allowing you to stop working decades before traditional retirement age.
What is a FIRE number?
Your FIRE number is 25 times your annual expenses (using the 4% rule). If you spend $40,000/year, your FIRE number is $1,000,000. Once your investments reach this amount, you can safely withdraw 4% annually to cover living costs.
What is the 4% rule?
The 4% rule, from the 1998 Trinity Study, says you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each year, with a very high probability of not running out of money over 30 years.
What is Coast FIRE?
Coast FIRE means you have enough invested that compound growth alone will reach your traditional retirement target by age 65 — you still work but no longer need to save. This allows more flexibility in career choices.
How much do I need to save to retire early?
It depends on your expenses and withdrawal rate. The formula is: Annual Expenses / Withdrawal Rate = FIRE Number. At a 4% withdrawal rate, you need 25x your annual expenses invested.
Is a 7% return realistic?
The US stock market has returned approximately 10% annually before inflation (7% after inflation) over the past century. A diversified index fund portfolio targeting 7% real returns is reasonable for long-term planning, though not guaranteed.