FIRE Calculator
Calculate your financial independence number and years to early retirement.
FIRE Summary
Year-by-Year Projection
| Year | Savings | Returns | Balance | % to FIRE |
|---|
Can't find what you need?
Request a ToolHow to Use the FIRE Calculator
This calculator helps you figure out your FIRE number and how many years it will take to reach financial independence. Here is how to use it:
- Enter your annual income. Use your gross annual income from all sources. If your income varies, use a conservative average from the past few years.
- Enter your annual expenses. Include everything you spend in a year: housing, food, transportation, insurance, entertainment, and all other costs. The difference between income and expenses is your annual savings.
- Enter your current savings. This is the total value of all your investments and savings earmarked for retirement or financial independence, including 401(k), IRA, brokerage accounts, and savings accounts.
- Set your expected annual return. A common assumption is 7%, which reflects average stock market returns after inflation. Use a lower number for a more conservative estimate.
- Set your safe withdrawal rate. The default is 4%, based on the Trinity Study. Lower rates (3-3.5%) provide more safety for early retirees with 40+ year retirement horizons.
Results update instantly as you adjust any input. The year-by-year table shows your projected balance growth toward your FIRE number. Use the Share button to save a link with your inputs pre-filled.
About the FIRE Movement
FIRE stands for Financial Independence, Retire Early. The core idea is simple: save aggressively, invest wisely, and build a portfolio large enough that its returns cover your living expenses indefinitely. Your FIRE number is the portfolio size needed to sustain your spending using a safe withdrawal rate.
The movement emphasizes that retirement is not about age. It is about having enough invested assets that work is optional. Many FIRE practitioners continue working on projects they enjoy, but do so by choice rather than financial necessity.
This calculator uses annual compounding to project your path to financial independence. It does not account for taxes, inflation adjustments, or variable spending. For inflation-adjusted projections, reduce your expected return by 2-3%. All calculations run entirely in your browser with no data stored or transmitted.
Frequently Asked Questions
What is the FIRE movement?
FIRE stands for Financial Independence, Retire Early. It is a lifestyle movement focused on extreme savings and investment to achieve financial independence much earlier than traditional retirement age. The goal is to accumulate enough wealth that investment returns cover all living expenses, making paid work optional. Practitioners typically save 50-70% of their income and invest in low-cost index funds.
What is a FIRE number?
Your FIRE number is the total amount of money you need invested to cover your annual expenses indefinitely. It is calculated by dividing your annual expenses by your safe withdrawal rate. For example, if you spend $40,000 per year and use a 4% withdrawal rate, your FIRE number is $1,000,000. Once your portfolio reaches this number, you can withdraw enough each year to cover expenses without depleting the principal over time.
What is the 4% rule?
The 4% rule comes from the 1994 Trinity Study. It states that if you withdraw 4% of your portfolio in the first year of retirement and adjust that amount for inflation each year, your portfolio has a high probability of lasting at least 30 years. For early retirees who may need their money to last 40-50 years, many financial planners recommend a more conservative rate of 3-3.5% to increase the margin of safety.
How do I increase my savings rate?
Increasing your savings rate is the most powerful lever for reaching FIRE faster. Focus on the biggest expenses first: housing (consider house hacking or downsizing), transportation (buy used cars, reduce to one vehicle), and food (cook at home more). On the income side, negotiate raises, develop higher-paying skills, or add side income. Even small increases in savings rate can shave years off your FIRE timeline due to the compounding effect.