FIRE Calculator
Calculate your Financial Independence Retire Early (FIRE) number, discover when you can retire, and explore different FIRE strategies to achieve your goals.
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Your Financial Information
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Your FIRE Results
FIRE Number
$1,125,000
Amount needed to retire
Years to FIRE
14.7 years
At current savings rate
FIRE Age
50
When you can retire
Savings Rate
44%
$2,917/month
📊 Insights & Recommendations
- •Coast FI is within reach! You need $47,788 more to stop contributing and still retire at 65.
🎯 FIRE Milestones
FIRE Strategy Comparison
Lean FIRE
Minimalist lifestyle (62.5% expenses)
Regular FIRE
Current lifestyle maintained
Fat FIRE
Luxury lifestyle (2.5x expenses)
Coast FIRE
Stop saving, let it grow
Barista FIRE
Part-time work covers 25%
Portfolio Growth Projection
Your portfolio will reach $1,125,000 at age 50
How Savings Rate Affects Time to FIRE
Key Takeaway: Increasing your savings rate has a dramatic impact on how quickly you can achieve FIRE. Every 10% increase in savings rate can shave years off your journey.
What is FIRE?
FIRE stands for Financial Independence, Retire Early. It's a lifestyle movement focused on extreme savings and investing to achieve financial independence much earlier than traditional retirement age (65). The core principle: save and invest aggressively (typically 50-70% of income) so your investments can support your living expenses indefinitely.
The Power of FIRE
By saving 50% of your income, you could potentially retire in just 17 years. At 60% savings, that drops to ~12 years. Compare this to traditional retirement planning at 10-15% savings, which takes 40+ years. Use our budget planner to find ways to increase your savings rate and track your progress with our net worth tracker.
The 4% Rule Explained
The 4% Rule is the foundation of FIRE calculations. It states that you can safely withdraw 4% of your portfolio annually in retirement (adjusted for inflation) with a very high probability of not running out of money over a 30+ year retirement.
Example Calculation
Annual Expenses: $40,000
FIRE Number = $40,000 ÷ 0.04 = $1,000,000
With $1 million invested, you can withdraw $40,000/year (4%) to cover your expenses while your portfolio continues growing at ~7% annually (after inflation).
FIRE Strategies Explained
Lean FIRE
Minimalist lifestyle with lower annual expenses (typically $25k-$40k/year). Requires less money to retire but demands frugal living. Best for those who value simplicity and minimal material possessions.
Regular FIRE
Traditional FIRE approach maintaining your current lifestyle ($40k-$100k/year). Balanced between comfort and early retirement. Most common FIRE target for middle class.
Fat FIRE
Luxury retirement with higher spending ($100k+/year). No compromises on lifestyle, travel, or comfort. Requires significant wealth accumulation but offers maximum freedom.
Coast FIRE
Save enough early that investment growth alone will reach your FIRE number by age 65, without additional contributions. You can stop saving and work less stressfully knowing retirement is secured.
Barista FIRE
Semi-retirement with part-time work covering living expenses while your portfolio grows untouched. Popular for those wanting health insurance benefits (Starbucks, Costco) or social connection from work.
Why the 25x Rule Works
The "multiply by 25" rule comes from inverting the 4% withdrawal rate:
- • If you withdraw 4% per year: 1 ÷ 0.04 = 25
- • This assumes your investments grow at least 7% annually (covering 4% withdrawal + 3% inflation)
- • Your principal remains intact or continues growing
- • Based on historical stock market performance since 1926
The Trinity Study
The 4% rule is based on the Trinity Study, landmark research published in 1998 analyzing historical portfolio performance from 1926-1995. Key findings:
- 4% withdrawal rate: 95% success rate over 30 years (75% stocks / 25% bonds)
- 3% withdrawal rate: Nearly 100% success rate over 30+ years
- Higher stock allocation: Generally better long-term outcomes
- Study was updated in 2011 and validated through the 2008 financial crisis
How to Accelerate Your FIRE Journey
1. Increase Your Savings Rate
The single most powerful factor. Every 10% increase in savings rate can shave 5-10 years off your FIRE timeline. Use our budget planner to find areas to cut expenses and increase income (side hustles, career advancement).
2. Optimize Your Investments
Max out tax-advantaged accounts (401k, IRA, HSA). Use low-cost index funds (0.05% expense ratio vs 1%+ saves thousands). Calculate your returns with our compound interest calculator to see the power of consistent contributions. Maintain high stock allocation (80-100%) for growth during accumulation phase.
3. Reduce the Big Three
Housing, transportation, and food typically account for 60-70% of expenses. Use our budget planner to analyze these categories. House hacking, biking/public transit, and home cooking can dramatically increase your savings rate without feeling deprived.
4. Consider Geo-Arbitrage
Your FIRE number depends entirely on your expenses. Living in a lower cost of living area (or country) can cut your FIRE number in half, meaning you reach FIRE twice as fast.
Methodology & Sources
Our FIRE calculator is based on academically validated research and historical market data:
Trinity Study (1998)
The foundational research establishing the 4% safe withdrawal rate based on historical portfolio performance from 1926-1995.
Source: AAII Journal - Retirement Savings: Choosing a Withdrawal Rate That Is SustainableUpdated Trinity Study (2011)
Revalidated the 4% rule through the 2000 dot-com crash and 2008 financial crisis, confirming the safety of the withdrawal rate.
Source: Updated Trinity Study PDFBengen's Research (1994)
William Bengen's original research that first identified the 4% rule using historical data from 1926-1976.
Source: Determining Withdrawal Rates Using Historical DataVanguard Research - Asset to Income
Modern validation of withdrawal rate strategies and portfolio management in retirement.
Source: Vanguard - From Assets to IncomeHistorical Market Returns
S&P 500 real returns (after inflation): 7% annually from 1926-2023. Used as default expected return rate.
Source: NYU Stern - Historical Returns on Stocks, Bonds and BillsFIRE Community Resources
Additional methodologies and real-world FIRE implementation strategies from leading FIRE blogs and communities.
Disclaimer: This calculator provides educational estimates based on historical data and academic research. Past performance does not guarantee future results. Actual investment returns, inflation, and life circumstances vary. Consider consulting a financial advisor for personalized retirement planning.
Related Tools
Explore these calculators to accelerate your FIRE journey and manage your plan end‑to‑end:
📊 Historical Market Data Sources
• Average annual return (1926-2024): ~10% nominal, ~7% inflation-adjusted
• Standard deviation: ~20% (indicating significant year-to-year volatility)
→ Source: NYU Stern - Historical Returns on Stocks, Bonds and Bills
• S&P 500 average dividend yield: 1.5-2.0% (as of 2024-2025)
• Historical dividend growth rate: ~5.9% annually (1960-2024)
→ Source: S&P Dow Jones Indices
• 10-Year Treasury bonds: ~5% average annual return (1926-2024)
• Corporate bonds (investment grade): ~6% average annual return
→ Source: NYU Stern - Corporate Finance Data
• Long-term average: ~3% annually (1926-2024)
• Recent (2020-2024): 2-8% range with 2022 peak at 8%
→ Source: Bureau of Labor Statistics - Consumer Price Index
Important: Past performance does not guarantee future results. Market returns vary significantly year-to-year. These are long-term historical averages.
Key Financial Terms
Understand the essential concepts behind this calculator
FIRE (Financial Independence, Retire Early)
A movement focused on saving aggressively (50-70% of income) to retire decades earlier than traditional retirement age.
Safe Withdrawal Rate (4% Rule)
The percentage of your retirement portfolio you can withdraw annually without running out of money, historically around 4%.
Wealth Building
The process of systematically increasing your net worth over time
Frequently Asked Questions
Common questions about the FIRE Calculator
💡 Emergency Fund Guidelines & Sources
Financial experts recommend saving 3-6 months of essential expenses as an emergency fund. Those with variable income or single-income households should aim for 6-12 months.
→ Source: Consumer Financial Protection Bureau (CFPB)
According to Federal Reserve data, 40% of Americans would struggle to cover a $400 emergency expense using cash or savings.
→ Source: Federal Reserve - Economic Well-Being of U.S. Households (2023 Report)
The median time to find new employment ranges from 8-20 weeks, varying by industry, location, and economic conditions.
→ Source: Bureau of Labor Statistics - Unemployed Persons by Duration
As of 2024-2025, high-yield savings accounts (HYSA) offer approximately 4.0-4.5% APY, significantly higher than traditional savings accounts (~0.01-0.5%).
→ Source: FDIC - National Rates and Rate Caps
Tip: Keep emergency funds in liquid, FDIC-insured savings accounts for easy access. Don't invest emergency funds in stocks or bonds.
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⚠️ Important Disclaimer
This FIRE Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.