Your FIRE Number
$1,250,000
25x your annual expenses ($50,000/yr)
Progress to FIRE 8.0%
$100,000 $1,250,000
Years to FIRE 14.0 years
FIRE Age 44
Annual Savings $50,000
Monthly Savings $4,167
Safe Annual Withdrawal $50,000
Monthly in Retirement $4,167

Path to Financial Independence

Understanding FIRE

FIRE (Financial Independence, Retire Early) is about accumulating enough wealth that your investments can cover your living expenses indefinitely.

Why Use This Tool?

The path to financial independence is a marathon, not a sprint. This calculator helps you visualize how small changes in your savings rate or investment returns can dramatically accelerate your retirement date, giving you back years of your life.

The 4% Rule

The 4% safe withdrawal rate comes from the Trinity Study, suggesting you can withdraw 4% of your portfolio annually with low risk of running out of money over 30 years.

  • FIRE Number = Annual Expenses x 25 (inverse of 4%).
  • More conservative: 3.5% withdrawal (28.5x expenses).
  • More aggressive: 4.5% withdrawal (22x expenses).
  • Consider adjusting for longer retirement horizons.

Types of FIRE

Different FIRE approaches exist depending on your lifestyle goals and spending levels.

  • Lean FIRE: Minimal lifestyle, ~$40k/year expenses.
  • Regular FIRE: Moderate lifestyle, ~$60-80k/year.
  • Fat FIRE: Comfortable lifestyle, $100k+/year.
  • Coast FIRE: Save enough early, then let compounding work.
  • Barista FIRE: Part-time work for healthcare/extras.

Savings Rate Matters Most

Your savings rate is the single biggest factor determining how quickly you reach FIRE.

  • 10% savings rate: ~51 years to FIRE.
  • 25% savings rate: ~32 years to FIRE.
  • 50% savings rate: ~17 years to FIRE.
  • 75% savings rate: ~7 years to FIRE.

Key Terms Defined

FIRE Financial Independence, Retire Early. A movement dedicated to a program of extreme savings and investment.
SWR Safe Withdrawal Rate. The percentage of your portfolio you can withdraw annually without running out of money.
FIRE Number The total amount of invested assets needed to cover your living expenses forever.
Savings Rate The percentage of your income that you save and invest each month.