Financial Independence, Retire Early (FIRE) is a goal of saving enough to live off investments without needing traditional employment. This calculator estimates your FIRE number and how many years it may take to reach it.
How to use this calculator
- Enter your annual living expenses.
- Enter your safe withdrawal rate (4% is a common starting point).
- Enter your current savings and monthly contributions.
- Enter your expected average annual investment return.
- Review your FIRE number and estimated years to reach it.
Formula
FIRE number = Annual expenses ÷ (Withdrawal rate ÷ 100). Years to FIRE is calculated by projecting compound growth on current savings plus monthly contributions until the balance reaches the FIRE number.
Example
With $50,000 annual expenses and a 4% withdrawal rate, your FIRE number is $1,250,000. Starting with $100,000 and saving $2,000 per month at 7% return may take about 18 years to reach that goal.
Frequently asked questions
What is the 4% rule?
The 4% rule suggests you can withdraw 4% of your portfolio in the first year of retirement and adjust for inflation, with a high probability the money lasts 30 years. It is a guideline, not a guarantee.
Should I include home equity in FIRE savings?
Most FIRE planners count investable assets only. Home equity is typically excluded unless you plan to downsize or rent part of your home in retirement.