FIRE Calculator
🏠 Free ToolCalculate your FIRE (Financial Independence, Retire Early) number based on the 4% rule. Enter your annual expenses, current savings, monthly savings rate, and expected returns to see when you can achieve financial independence.
How it Works
Our FIRE calculator determines your Financial Independence number using the 4% rule (annual expenses multiplied by 25) and simulates your savings trajectory to show when you will reach it. Enter your annual living expenses, current savings, monthly savings rate, and expected investment return.
The FIRE number represents the portfolio size needed to cover your expenses indefinitely through a 4% annual withdrawal. Once your investments reach this target, you have the option to stop working — your portfolio should sustain your lifestyle through investment returns alone.
The savings trajectory chart shows your projected net worth year by year, accounting for both your monthly contributions and investment growth. Bars that reach the FIRE number line indicate the point at which you achieve financial independence.
Adjust the inputs to explore different scenarios. Increasing your monthly savings by even a small amount can dramatically reduce your years to FIRE, especially when combined with a reasonable expected return. Remember that the 4% rule assumes a diversified portfolio and a 30-year retirement horizon.
Frequently Asked Questions
What is the FIRE number?
Your FIRE number is 25 times your annual expenses, based on the 4% safe withdrawal rate. If you spend €30,000/year, your FIRE number is €750,000. This portfolio should sustain your spending indefinitely.
What is the 4% rule?
The 4% rule states that you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, with a very low probability of running out of money over 30 years. It comes from the Trinity Study.
How can I reach FIRE faster?
The two levers are: increase your savings rate and reduce your expenses. Reducing expenses has a double benefit — it lowers your FIRE number while increasing your savings rate. Even small lifestyle changes can shave years off your timeline.
Is the 4% rule still valid?
The 4% rule has been debated given low interest rates and high valuations. Some experts suggest 3.5% for added safety. The rule works best with a diversified portfolio of stocks and bonds and a flexible spending approach.
What about taxes and healthcare in retirement?
This calculator shows pre-tax figures. In practice, you need to account for taxes on withdrawals and healthcare costs. Consider adding these to your annual expenses estimate for a more conservative calculation.
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