FIRE Calculator

Use this calculator to estimate your FIRE number and how many years it may take to reach financial independence.

What this calculator does

The FIRE calculator estimates the portfolio needed for financial independence based on annual expenses and withdrawal rate. It also estimates years to reach that number.

It uses:

• annual expenses
• current savings
• annual contribution
• expected annual return

FIRE Formula

FIRE Number = Annual Expenses ÷ (Withdrawal Rate ÷ 100)

Where:

• Annual Expenses = yearly spending target
• Withdrawal Rate = percentage withdrawn each year
• FIRE Number = portfolio needed for financial independence
• Years to FIRE = time to reach that portfolio

Example calculation

If:

• Annual expenses = 50,000
• Withdrawal rate = 4%
• Current savings = 100,000
• Annual contribution = 25,000

Then:

• FIRE number = 50,000 ÷ 0.04
• FIRE number = 1,250,000
• Savings grow with contributions and return
• Years to FIRE may be about 18

The estimated FIRE number is 1,250,000.

What is FIRE?

FIRE stands for Financial Independence, Retire Early. It describes saving and investing enough that portfolio withdrawals can cover expenses without needing traditional full-time work.

Why FIRE matters

• turns expenses into a clear asset target
• shows how savings rate affects freedom
• helps compare lifestyle choices
• supports early retirement planning

When to use this calculator

• estimating a financial independence number
• testing annual expense assumptions
• comparing savings rates
• planning early retirement timelines

Common mistakes

• underestimating future expenses
• ignoring taxes and healthcare
• assuming returns are steady
• using FIRE as a fixed date instead of a flexible plan

FIRE vs traditional retirement

FIRE focuses on reaching financial independence earlier through high savings and controlled expenses. Traditional retirement often assumes work continues until a standard retirement age.

Both require matching assets to spending needs.

FAQs

What is FIRE?

FIRE is a financial independence approach where investments can cover expenses, making work optional.

How do you calculate FIRE?

Divide annual expenses by the withdrawal rate, then estimate how long savings and contributions take to reach that target.

What is a good FIRE number?

A common FIRE number is 25 times annual expenses when using a 4% withdrawal rate.

What is the difference between FIRE and traditional retirement?

FIRE aims for independence earlier. Traditional retirement usually targets a later age-based exit.