Early Retirement Calculator

Q: What is the FIRE number?

The FIRE (Financial Independence, Retire Early) number is the portfolio size at which you can sustainably live off investment returns without working. It is calculated as: FIRE Number = Annual Expenses / Safe Withdrawal Rate. Using the standard 4% SWR: FIRE Number = Annual Expenses × 25. For example, if your annual spending is $50,000, your FIRE number is $1,250,000.

Q: What is the 4% safe withdrawal rate?

The 4% rule (or Bengen Rule) comes from a 1994 study by financial planner William Bengen, who found that a portfolio invested in 50/50 stocks and bonds could sustain a 4% annual withdrawal rate for at least 30 years through any historical market cycle. For early retirees with a 40–50 year horizon, many experts recommend 3–3.5% to account for longer time periods and sequence-of-returns risk.

Q: How does savings rate affect early retirement?

Savings rate is the most powerful variable in early retirement planning. Starting from $0: a 10% savings rate takes about 43 years to reach FIRE; a 25% rate takes about 32 years; a 50% rate takes about 17 years; a 75% rate takes about 7 years. The math works because a higher savings rate both accelerates portfolio growth and reduces the expenses you need to cover - lowering your FIRE number simultaneously.

Q: What are the different types of FIRE?

LeanFIRE: retire on a very frugal budget (typically under $25,000/year). FatFIRE: retire with a generous lifestyle (often $100,000+/year). BaristaFIRE: semi-retire with part-time work covering basic expenses while the portfolio continues growing. CoastFIRE: reach a portfolio large enough that, with no further contributions, it will reach full FIRE by a target age through compounding alone.

Find your FIRE number and the years until you can retire early.

⏰ What is FIRE (Financial Independence, Retire Early)?

FIRE stands for Financial Independence, Retire Early - a movement focused on extreme saving and investing to achieve financial independence far before traditional retirement age. The core concept is simple: if your investment portfolio generates enough passive income to cover all your living expenses, you no longer need to work for money. The portfolio size that achieves this is called the FIRE number.

The FIRE number is most commonly calculated using the 4% rule: multiply your annual expenses by 25. If you spend $50,000 per year, your FIRE number is $1,250,000. A portfolio of that size, invested in a diversified mix of stocks and bonds, has historically supported a 4% annual withdrawal (inflation-adjusted) for at least 30 years in nearly all historical market conditions. For early retirees with a 40–50 year horizon, many advocates use a more conservative 3–3.5% withdrawal rate, translating to a 28–33x multiplier.

The path to FIRE depends primarily on your savings rate - the percentage of after-tax income you save and invest. A 10% savings rate might take 40+ years; a 50% savings rate can achieve FIRE in under 20 years from a zero start. This calculator models both the FIRE number and the years to reach it, accounting for compound growth of existing savings and regular contributions.

📐 FIRE Calculation Formula

FIRE Number = Annual Expenses / Safe Withdrawal Rate

Years to FIRE = log(FN × r / AS + 1) / log(1 + r)

FN = FIRE Number (Annual Expenses / SWR)

r = Annual real return rate

AS = Annual savings (Income × Savings Rate)

CS = Current savings balance

SWR = Safe Withdrawal Rate (e.g., 0.04 for 4%)

The FIRE Number formula derives from the safe withdrawal rate - the percentage of a portfolio you can withdraw each year without depleting it. Dividing annual expenses by the SWR gives the portfolio size needed. The years-to-FIRE formula solves for the time it takes a portfolio, growing at rate r with annual contributions, to reach the FIRE Number. The current savings balance accelerates the timeline as it already has a head start on compounding.

📖 How to Use This Calculator

Steps

Enter your annual income and savings rate - savings rate is the key variable. Even a 5% increase in savings rate can shorten your timeline by years.

Enter current savings and annual expenses - expenses determine your FIRE number. Reducing expenses both lowers the target and increases savings simultaneously.

Set SWR and expected return - use 4% SWR for a 30-year retirement, 3.5% for 40+ years. Use 5–7% for nominal return or 3–5% for real (inflation-adjusted) return.

Click Calculate to see your FIRE number, years to reach it, annual savings amount, and gap remaining.

💡 Example Calculations

Example 1 - 30-Year-Old with 30% Savings Rate

Income = $80,000 | Savings Rate = 30% | Current Savings = $50,000 | Expenses = $56,000 | SWR = 4% | Return = 7%

Annual savings = $80,000 × 30% = $24,000/year

FIRE Number = $56,000 / 4% = $1,400,000

Gap = $1,400,000 − $50,000 = $1,350,000 to accumulate

Years to FIRE ≈ 23 years (retire at ~53) with $24,000/year at 7%

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Example 2 - High Savings Rate FIRE (50%)

Income = $100,000 | Savings = 50% | Current Savings = $0 | Expenses = $50,000 | SWR = 3.5% | Return = 7%

Annual savings = $50,000 | FIRE Number = $50,000 / 3.5% = $1,428,571

Years to FIRE ≈ 17 years from $0 at 50% savings rate and 7% return

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❓ Frequently Asked Questions

What is the FIRE number?+

The FIRE number is the portfolio size at which you can sustainably live off investment returns. It is calculated as: FIRE Number = Annual Expenses / Safe Withdrawal Rate. Using the standard 4% SWR: FIRE Number = Annual Expenses × 25. For $50,000/year in expenses, the FIRE number is $1,250,000.

What is the 4% safe withdrawal rate?+

The 4% rule comes from a 1994 study by financial planner William Bengen, who found that a 50/50 stock/bond portfolio could sustain a 4% annual withdrawal for at least 30 years through any historical market cycle. For early retirees with 40–50 year horizons, many experts recommend 3–3.5% to account for longer periods and sequence-of-returns risk.

How does savings rate affect early retirement?+

Savings rate is the most powerful variable in FIRE planning. From $0: 10% savings rate takes ~43 years; 25% takes ~32 years; 50% takes ~17 years; 75% takes ~7 years. A higher savings rate both accelerates portfolio growth and reduces expenses - lowering your FIRE number and shrinking the gap simultaneously.

What are the different types of FIRE?+

LeanFIRE: retire on a frugal budget (under $25,000/year). FatFIRE: retire with a generous lifestyle ($100,000+/year). BaristaFIRE: semi-retire with part-time work covering basics while the portfolio grows. CoastFIRE: reach a portfolio large enough that, with no further contributions, it will reach full FIRE by target age through compounding alone.

Do I need to account for inflation in FIRE planning?+

Yes. Most FIRE calculations use real (inflation-adjusted) returns - typically 7% nominal minus 2–3% inflation = 4–5% real return. The 4% SWR historically accounts for inflation by adjusting withdrawals upward each year. Using real return rates in this calculator means the FIRE number and timeline already account for maintaining purchasing power.

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📌 Quick Tips

💡The FIRE number is typically 25x your annual expenses (based on the 4% safe withdrawal rate). Save 25 times what you spend per year to retire at any age.

💡Your savings rate is the single most powerful lever for early retirement - a 50% savings rate gets you to FIRE in about 17 years from a $0 start.

💡Early retirees often need a longer runway - 40–50 years - which requires a more conservative withdrawal rate (3–3.5%) compared to the standard 4%.