About the FIRE Calculator
FIRE stands for financial independence, retire early, and the whole movement rests on one number: the portfolio that can fund your spending indefinitely. Under the widely used 4 percent rule that number is 25 times your annual spending, derived from research showing a diversified portfolio historically survived 30 years of withdrawals at that rate. Choose a lower withdrawal rate for a longer or more cautious retirement.
The striking result is that your savings rate, not your income, drives the timeline. Someone saving half their take-home pay reaches independence in roughly 17 years regardless of the absolute numbers, because a high savings rate both builds the portfolio faster and shrinks the portfolio needed. Cutting spending therefore counts twice, which is why the calculator shows your savings rate alongside the target.
How to use the FIRE Calculator
- Enter your annual take-home income and your annual spending.
- Add what you already have invested and the real return you expect after inflation.
- Adjust the safe withdrawal rate if you want a more or less cautious plan, then read your FIRE number and timeline.