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FIRE Calculator (Financial Independence)

Updated · By the CalculatorDash editorial team · How we check our maths

Quick answer

Your FIRE number is yearly spending ÷ safe withdrawal rate, about 25× spending at 4%. Spending $48,000 a year means a target of $1.2 million. With $150,000 invested, $30,000 saved a year and a 5% real return, you'd reach it in about 18 years.

Years to financial independence

$
%
$
$
%

Your FIRE number

$1,200,000

Years to reach it
17.9 years
Progress today
12.5%
Monthly income it supports
$4,000

Uses a steady real return. Real markets vary, and sequence of returns early in retirement matters a lot.

How this calculator works

FIRE stands for Financial Independence, Retire Early. The idea is simple: once your investments are large enough that a safe yearly withdrawal covers your spending, work becomes optional. That target is your FIRE number.

The 4% rule comes from studies of US market history which found that withdrawing 4% of a portfolio in the first year, then adjusting for inflation, survived almost every 30-year period. For retirements of 40 years or more many people plan on 3–3.5%, which means a target of 28–33× spending.

Because this calculator uses a real (after-inflation) return, every figure is in today's money. The fastest lever is usually your savings rate: spending less lowers the target and raises what you invest, at the same time.

The formula

FIRE number
yearly spending ÷ withdrawal rate
Years to reach it
ln((target × r + saving) ÷ (invested × r + saving)) ÷ ln(1 + r)

Worked example

$48,000 ÷ 4% = $1,200,000. Starting with $150,000 and adding $30,000 a year at a 5% real return, the portfolio passes $1.2 million after about 17.9 years.

Tips

  1. 01Track spending for a few months before choosing a number; most people underestimate it.
  2. 02Remember health insurance and taxes on withdrawals in your retirement budget.
  3. 03Coast FIRE is a useful midpoint: enough invested that growth alone reaches your number by traditional retirement age.

Frequently asked questions

What is the 4% rule?

Withdraw 4% of your portfolio in year one and adjust that amount for inflation each year; historically that lasted at least 30 years in almost all US scenarios.

How much do I need to retire early?

Roughly 25 to 33 times your yearly spending, depending on the withdrawal rate you're comfortable with.

What return should I use?

A real return of 4–6% is a common assumption for a stock-heavy portfolio. Lower it if you hold more bonds.