Retirement

FIRE Calculator

Calculate your Financial Independence, Retire Early number.

Enter your annual expenses, current savings, and monthly savings rate to calculate your FIRE number (using the 4% rule) and estimated years until financial independence.

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Your FIRE Number

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Estimated Years to FIRE

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How to Use This Tool

  1. Enter your annual expenses in retirement.
  2. Enter your current savings and monthly savings rate.
  3. Click Calculate for your FIRE number and estimated years to reach it.

The FIRE Number Formula

FIRE Number = Annual Expenses ÷ Withdrawal Rate

The classic 4% rule (derived from the Trinity Study) suggests that withdrawing 4% of your portfolio annually, adjusted for inflation, has historically had a high probability of lasting 30+ years — equivalent to needing 25 times your annual expenses saved.

What FIRE Means

FIRE (Financial Independence, Retire Early) is a movement focused on aggressive saving and investing to reach financial independence — the point where investment returns can sustainably cover living expenses — much earlier than traditional retirement age.

Variations on the 4% Rule

Some FIRE practitioners use more conservative withdrawal rates (3-3.5%) for extra safety margin, especially for very early retirements with a longer time horizon, while others use closer to 4.5-5% depending on their flexibility to adjust spending.

Important Caveats

This calculator uses average expected returns and doesn't model market volatility, sequence-of-returns risk (poor returns early in retirement), taxes, healthcare costs before Medicare eligibility, or unexpected expenses — all significant considerations for real FIRE planning.

Frequently Asked Questions

What is the 4% rule based on?

It's derived primarily from the Trinity Study, which analyzed historical US market returns and found that a 4% initial withdrawal rate, adjusted annually for inflation, had a high historical success rate over 30-year retirement periods.

Is the 4% rule still considered reliable for early retirees?

It's debated — some argue a lower withdrawal rate (3-3.5%) is more prudent for very long retirement horizons (40+ years) common in early retirement, given uncertainty about future market returns and sequence-of-returns risk.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.