FIRE Calculator

FIRE stands for Financial Independence, Retire Early. It is a lifestyle movement built around aggressively saving and investing — typically 50–70% of income — to build a portfolio large enough to support living expenses indefinitely through investment returns alone. Once you reach your FIRE number, you no longer need earned income to cover your costs. You can choose to stop working entirely, shift to part-time or passion work, or simply gain the freedom to work on your own terms. The movement gained mainstream attention in the 2010s through blogs, books like 'Your Money or Your Life,' and communities such as r/financialindependence. FIRE is not one-size-fits-all — it ranges from frugal 'Lean FIRE' to comfortable 'Fat FIRE' depending on your target lifestyle.

The 4% rule is a safe withdrawal rate guideline that originated from the Trinity Study (1998), which analyzed historical U.S. stock and bond market data. It found that a retiree withdrawing 4% of their portfolio in year one, then adjusting for inflation each year, had a very high probability of not running out of money over a 30-year retirement. The inverse — the 'Rule of 25' — says you need 25 times your annual expenses saved to retire (since 1/0.04 = 25). While the 4% rule is a useful starting point, critics note it was calibrated for traditional 30-year retirements and may be too aggressive for early retirees with 40–60 year horizons. Many FIRE practitioners use a more conservative 3–3.5% withdrawal rate, or supplement with part-time work (Barista FIRE) to reduce portfolio draws in early years.

Lean FIRE targets a frugal, minimalist retirement — typically annual expenses under $40,000. It requires a smaller portfolio (e.g., $40,000 / 0.04 = $1,000,000) but demands a permanently low-cost lifestyle with little room for lifestyle inflation. Fat FIRE targets a comfortable or luxurious retirement — annual expenses of $80,000–$150,000 or more — requiring a larger portfolio ($2,000,000–$3,750,000+) but offering greater flexibility, travel, and discretionary spending. Barista FIRE is a hybrid where you stop full-time work before reaching your full FIRE number and cover remaining expenses with part-time or flexible work (the name comes from working at a coffee shop for health benefits). Barista FIRE lets you leave the traditional workforce earlier while your portfolio continues growing, reducing how much you need to save upfront.

Coast FIRE is the amount you need saved today so that — even if you make zero additional contributions — compound growth alone will grow your portfolio to your full FIRE number by your target retirement age. The formula is: Coast FIRE Number = FIRE Number ÷ (1 + annual return rate)^years to retirement. For example, if your FIRE number is $1,000,000, you plan to retire in 25 years, and you expect 7% annual returns: $1,000,000 ÷ (1.07)^25 = approximately $184,249. Once your portfolio hits that coast number, you only need to earn enough to cover current living expenses — your existing savings will do the rest of the work. Many people find Coast FIRE a more achievable intermediate milestone on the way to full FIRE.

Your FIRE number is calculated using the formula: FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate. With the standard 4% rule, that means 25× your expected annual spending. For example: $30,000/year in expenses → $750,000 FIRE number; $50,000/year → $1,250,000; $80,000/year → $2,000,000. The key levers are your savings rate, investment return, and target withdrawal rate. A 50% savings rate on a $80,000 income typically gets you to financial independence in about 17 years from scratch. Each percentage point increase in savings rate meaningfully reduces your time to FIRE. This calculator runs a year-by-year projection to show you exactly when your portfolio will hit your number based on your inputs.

Most FIRE practitioners use a combination of tax-advantaged and taxable accounts. The common 'FIRE stack' starts with contributing enough to a 401(k) to capture any employer match (free money), then maxing a Roth IRA ($7,000 in 2025), then returning to the 401(k) to the annual limit ($23,500 in 2025), and finally investing in a taxable brokerage account. The Roth IRA is especially valuable for FIRE because contributions (not earnings) can be withdrawn penalty-free at any age, providing bridge income before age 59½. A Roth conversion ladder — where traditional 401(k) funds are converted to Roth and withdrawn after a 5-year waiting period — is another strategy for accessing tax-deferred retirement funds early. Index funds with low expense ratios (such as total-market ETFs) are the most common investment vehicle in the FIRE community.