FIRE Calculator - Financial Independence Retire Early
Free calculator to determine when you can achieve financial independence and retire early using the 4% safe withdrawal rule
FIRE Calculator
FIRE Results
What is a FIRE Calculator?
A FIRE Calculator is a free financial tool that helps you determine when you can achieve financial independence and retire early. It calculates your path to FIRE (Financial Independence, Retire Early) based on your current savings, income, expenses, and expected investment returns.
This calculator helps with:
- Retirement planning - Determine when you can stop working
- Savings targets - Calculate how much you need to save monthly
- Investment goals - Set realistic portfolio growth targets
FIRE Calculator Components
Your FIRE calculation includes these key components:
4% Rule
Safe withdrawal rate of 4% annually from your portfolio.
25x Expenses
Target portfolio value of 25 times your annual expenses.
Types of FIRE Strategies
Lean FIRE
Minimalist lifestyle with expenses under $40,000/year. Requires smaller portfolio but may involve lifestyle sacrifices.
Fat FIRE
Maintain current lifestyle with expenses over $75,000/year. Requires larger portfolio and higher savings rate.
How to Use This FIRE Calculator
Enter Current Age
Your current age in years (e.g., 30)
Set Retirement Age
Desired retirement age (e.g., 50 for 20 years early)
Add Financial Details
Current portfolio, income, expenses, and expected returns
Review Results
See your path to financial independence
Benefits of Using This Calculator
- •Clear timeline: Know exactly when you can achieve financial independence.
- •Savings targets: Determine exactly how much you need to save monthly and annually.
- •Reality check: See if your current savings rate will get you to FIRE on time.
- •Investment planning: Understand how different return rates affect your timeline.
Factors That Affect Your FIRE Results
1. Savings Rate
Higher savings rates dramatically reduce time to FIRE. Saving 50% vs 20% can cut your timeline in half.
2. Investment Returns
Market performance significantly impacts your portfolio growth. Even 1-2% difference compounds over time.
3. Expense Levels
Lower expenses reduce your FIRE target. Cutting $10,000 in annual spending reduces your target by $250,000.
Frequently Asked Questions
Common questions about FIRE and early retirement planning
What is the FIRE movement?
FIRE (Financial Independence, Retire Early) is a lifestyle movement focused on achieving financial independence through aggressive saving and investing, allowing you to retire much earlier than traditional retirement age.
What is the 4% safe withdrawal rate?
The 4% rule suggests that you can safely withdraw 4% of your portfolio value annually in retirement without running out of money. This assumes a 30-year retirement and historically safe withdrawal rate.
How much do I need to save for FIRE?
Most FIRE adherents aim to save 25x their annual expenses, following the 4% rule. This means if you spend $40,000 per year, you'll need $1,000,000 invested to safely retire.
What savings rate do I need for FIRE?
To achieve FIRE in 10-20 years, you'll typically need to save 50-75% of your income. Higher savings rates lead to faster financial independence. Use this calculator to determine your target savings rate.
What annual returns should I expect?
Historical stock market returns average 7-10% annually after inflation. For conservative estimates, use 6-7%. Remember that past performance doesn't guarantee future results.
Can I include my home equity in FIRE calculations?
While home equity can be part of your net worth, most FIRE calculators focus on liquid investments. You can sell your home in retirement, but it's generally not considered part of the 4% safe withdrawal calculation.
What expenses should I use for FIRE planning?
Use your current annual expenses as a baseline, but consider that retirement expenses might be 10-20% lower without work-related costs. Don't forget to include taxes and healthcare costs.
How does inflation affect FIRE calculations?
Inflation reduces purchasing power over time. The 4% rule accounts for inflation by using historical data that includes inflationary periods. Consider using real (inflation-adjusted) returns in your calculations.