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FIRE Calculator

Enter your age, savings, yearly saving, the yearly spending you want in retirement and your assumed return, inflation and withdrawal rate. The calculator finds the first year your portfolio can cover your spending and shows your FIRE number.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

Your FIRE number is the yearly spending you want divided by the withdrawal rate. At the common 4% rule of thumb it is 25 times your yearly spending, so $50,000 of spending needs $1,250,000.

Each year the balance grows by the return and you add your saving, which the calculator raises with inflation. The target also rises with inflation, because the same lifestyle costs more later. The first year the balance reaches the inflated target is your financial independence date.

The 4% figure comes from historical studies of 30 year retirements. Someone retiring at 40 needs the money to last longer, so many people use 3.25% to 3.5% for early retirement. Try a lower rate to see how much later it moves your date.

Assumptions and limits

  • Return and inflation are assumed to be the same every year. Real markets move up and down, and the order of returns matters a lot in the first years of retirement.
  • Taxes, health insurance before Medicare, Social Security and one-off costs are not included. Spending is the amount you need to withdraw.
  • This is an estimate, not financial advice.

Frequently asked questions

What is a FIRE number?

The portfolio that can fund your spending at your chosen withdrawal rate: yearly spending divided by the rate. With 4% that is 25 times your yearly spending.

What is the 4% rule?

A rule of thumb that you can withdraw 4% of your portfolio in the first year of retirement, then adjust that amount for inflation, and your money has historically lasted about 30 years. It is not a guarantee.

Should I use a lower withdrawal rate if I retire early?

Many people do, because the money has to last 40 or 50 years. A rate of 3.25% to 3.5% means a larger portfolio but more safety.

Why does inflation matter so much?

It raises both your future spending and the target. A 3% inflation rate makes $50,000 of spending today become about $90,000 in 20 years.

Does this include Social Security?

No. If you will receive Social Security, your portfolio may need to cover less, which would bring the date forward. Use the Social Security estimate calculator to see the amount.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Your age = 32; Savings and investments now ($) = 120000; You save each year ($) = 30000; Yearly spending in retirement, in today’s dollars ($) = 50000; Expected yearly investment return (%) = 7; Expected yearly inflation (%) = 3; Withdrawal rate (%) = 4.

  • Years to financial independence 22
  • Age you reach it 54
  • Your FIRE number (today’s dollars) $1,250,000.00
  • Portfolio needed then $2,395,129.26
  • Yearly spending then $95,805.17
  • Real return after inflation 3.88%

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.