FIRE Number Calculator
Your FIRE (Financial Independence, Retire Early) number is the amount you need invested to live off withdrawals indefinitely. This calculator uses your annual expenses and a safe withdrawal rate to estimate your target nest egg and how close you are to reaching it.
How it works
Your FIRE number is calculated by dividing your annual expenses by your safe withdrawal rate: FIRE Number = Annual Expenses / Withdrawal Rate. With the classic 4% rule, this means you need 25 times your yearly spending.
The years-to-FIRE estimate grows your current savings each year by your expected return and adds your annual contributions until your balance reaches the target. It uses the formula: new balance = old balance × (1 + return) + contribution, repeated year by year.
Tips
Lowering your annual expenses has a double effect: it reduces your FIRE number AND lets you save more, dramatically shortening your timeline.
The 4% withdrawal rate is a guideline based on historical data. A more conservative 3% to 3.5% rate gives a larger safety margin for early retirees with long horizons.
FAQ
What is a FIRE number?
It's the total amount you need invested so that safe withdrawals cover your living expenses indefinitely, allowing you to retire early without running out of money.
Why is the 4% rule used?
The 4% rule comes from research suggesting a portfolio can sustain 4% annual withdrawals (adjusted for inflation) for 30+ years. Dividing expenses by 4% equals multiplying by 25.
Should I use a lower withdrawal rate?
If you plan a very long retirement (40+ years), many experts suggest 3% to 3.5% for added safety, which raises your FIRE number but reduces the risk of depleting savings.