Calculate your FIRE (Financial Independence, Retire Early) number based on your annual expenses and withdrawal rate, and see how many years it will take to reach it given your current savings and contributions.
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Your FIRE number is the portfolio size that can sustainably fund your desired annual expenses using a fixed withdrawal rate, commonly 4%, sometimes called the '25x rule' since dividing by 4% is the same as multiplying by 25. The formula is: FIRE Number = Annual Expenses ÷ (Withdrawal Rate ÷ 100).
For example, if you want 40,000 a year in retirement and plan to withdraw 4% annually, your FIRE number is 40,000 ÷ 0.04 = 1,000,000. This calculator then simulates your current savings and monthly contributions growing at your expected return, month by month, until that target is reached.
A standard retirement calculator typically asks for a fixed retirement age and tells you the corpus you'd have by then. A FIRE calculator flips the question: it starts from a target amount (based on your actual desired spending) and solves for how long it takes to get there, which may be well before a traditional retirement age, the entire premise behind 'retire early'.
The 4% rule comes from historical research (the Trinity Study) suggesting a 4% initial withdrawal, adjusted for inflation each year, had a high historical success rate over a 30-year retirement. Some in the FIRE community use a more conservative 3% to 3.5% for longer retirement horizons, since retiring early means the money needs to last longer.
This calculator will let you know if that happens, which usually means your savings rate or expected return is too low relative to your target expenses. Try increasing your monthly contribution, lowering your desired annual expenses, or revisiting your expected return assumption.
No, this calculator uses your entered expected annual return as a net figure. If your actual returns will be reduced by fees or taxes on gains, use a lower expected return to get a more realistic estimate.
401(k) Calculator
Project your 401(k) balance at retirement, including employer match and salary growth.
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