Financial Independence, Retire Early (FIRE) Calculator
Calculate your path to financial freedom and early retirement
What is FIRE?
The FIRE (Financial Independence, Retire Early) movement is focused on intense saving and investing that allows people to retire much earlier than traditional retirement plans would allow. The core principle is simple: save and invest a large percentage of your income (often 50-70%) to accelerate your path to financial independence.
Financial independence is typically defined as having enough invested assets to cover your living expenses indefinitely without needing employment income, usually following the 4% rule (or similar withdrawal strategies).
Your FIRE Plan
Your FIRE Results
FIRE Number
$1,000,000
Total investments needed
Years to FIRE
25
Estimated retirement age: 55
Monthly Passive Income at FIRE
$3,333
Coast FIRE: $268,000 needed by age 40
Coast FIRE is when you have enough saved that you no longer need to contribute to retirement accounts to meet your goals.
FIRE Approaches Explained
Lean FIRE
Lean FIRE focuses on minimizing expenses and living frugally. The target is financial independence with minimal expenses, typically under $40,000 per year for a household.
- Lower FIRE number required
- Emphasis on frugality and minimalism
- Faster path to financial independence
- Less buffer for unexpected expenses
Regular FIRE
Regular FIRE balances saving with maintaining a moderate lifestyle. The target typically supports expenses in the $40,000-$100,000 range annually.
- Balanced approach to spending and saving
- More flexibility than Lean FIRE
- Reasonable timeline to independence
- Moderate buffer for lifestyle changes
Fat FIRE
Fat FIRE aims for financial independence without significant lifestyle compromises. The target typically supports expenses over $100,000 annually.
- Higher standard of living in retirement
- Substantial buffer for unexpected expenses
- More luxuries and travel possibilities
- Typically requires higher income to achieve
Understanding Withdrawal Strategies
The 4% Rule
The 4% rule is a guideline for how much a retiree should withdraw from retirement savings each year. This rule states that retirees can withdraw 4% of their portfolio in the first year of retirement and then adjust that amount for inflation each subsequent year.
Based on historical market performance, this approach gives a high probability that your portfolio will last at least 30 years.
Lower Withdrawal Rates
Some FIRE adherents prefer lower withdrawal rates (2.5-3.5%) for increased safety:
- Higher probability of success over long retirements (40+ years)
- Better protection against poor market returns early in retirement
- More suitable for early retirees with longer horizons
- Requires larger nest egg to generate the same income
Variable Withdrawal Strategies
Alternative approaches adjust withdrawals based on market conditions:
- Decrease withdrawals during market downturns
- Increase withdrawals during strong markets
- Maintain a cash buffer for 1-2 years of expenses
- Consider part-time work during poor market periods
Tips to Accelerate Your FIRE Journey
Increase Your Savings Rate
- Reduce housing costs (downsize, house hack, or relocate)
- Minimize transportation expenses (avoid car payments, use public transit)
- Optimize food spending (meal planning, reduce dining out)
- Cut subscription services you rarely use
- Focus on reducing your three largest expense categories
Invest Wisely
- Maximize tax-advantaged accounts (401(k), IRA, HSA)
- Consider low-cost index funds for long-term growth
- Build a diversified portfolio appropriate for your time horizon
- Minimize investment fees and taxes
- Learn about withdrawal strategies including Roth conversion ladders
Increase Your Income
- Develop valuable skills to increase your market value
- Negotiate for raises and promotions
- Consider side hustles or part-time entrepreneurship
- Build passive income streams (rental property, dividends, etc.)
- Job hop strategically if necessary for significant raises
Maintain Perspective
- Focus on increasing happiness, not just cutting expenses
- Build a supportive community with similar goals
- Plan what you're retiring to, not just what you're retiring from
- Consider semi-retirement or "Barista FIRE" as intermediate steps
- Remember that FIRE is a tool for freedom, not an end in itself