Back to Tools

FIRE Calculator

Financial Independence, Retire Early.

FIRE is a movement dedicated to extreme savings and investment that allows proponents to retire far earlier than traditional budgets permit. The core idea is simple: once your portfolio generates enough passive income to cover your expenses, you are free. You no longer need to work; you work only if you want to.

FIRE Number = Annual Expenses × 25

The 4% Rule Explained

The 4% Rule is the backbone of the FIRE movement. It is based on the "Trinity Study," which analyzed market data over decades. The study concluded that if you withdraw 4% of your portfolio in the first year of retirement and adjust that amount for inflation in subsequent years, you have a 95%+ chance of not running out of money for at least 30 years.

Savings Rate: The Most Important Metric

Your time to retirement is driven almost entirely by your Savings Rate (percentage of income saved). Returns matter, but savings rate matters more in the early stages.

  • 10% Savings Rate: You will work for ~51 years.
  • 50% Savings Rate: You will work for ~17 years.
  • 70% Savings Rate: You can retire in under 10 years.