FIRE Calculator
Calculate your path to Financial Independence and Retire Early (FIRE). Find out how much you need to save and how long it will take to achieve financial freedom.
FIRE Calculator (Financial Independence / Retire Early)
Find out how much you need to save and when you can stop working, based on your income, spending, and expected returns.
4% is the traditional safe withdrawal rate
What is FIRE?
FIRE (Financial Independence, Retire Early) is a movement focused on extreme savings and investment to allow early retirement. The goal is to accumulate enough assets to cover your living expenses indefinitely through investment returns.
The 4% Rule:
The cornerstone of FIRE planning is the 4% safe withdrawal rate. This rule suggests you can withdraw 4% of your portfolio annually in retirement without running out of money. Your FIRE number is calculated as: Annual Expenses ÷ 0.04
Types of FIRE:
- Lean FIRE: Living on a minimal budget (under $40k/year)
- Regular FIRE: Maintaining a middle-class lifestyle ($40-80k/year)
- Fat FIRE: Retiring with a higher standard of living ($100k+/year)
- Barista FIRE: Semi-retiring with part-time work to cover expenses
- Coast FIRE: Having enough saved that you can stop contributions and let it grow
Key Steps to Achieve FIRE:
- Calculate your FIRE number (25x annual expenses)
- Maximize your savings rate (50%+ is common in FIRE community)
- Invest consistently in low-cost index funds
- Reduce expenses and increase income
- Track your progress regularly
- Consider tax-advantaged accounts (TFSA, RRSP in Canada)