Financial Independence, Retire Early (FIRE) is a movement focused on extreme savings and investing to achieve retirement decades before the traditional age. This calculator helps you determine your FIRE number and timeline to freedom.
How This Calculator Works
This calculator projects your path to early retirement:
- Annual Expenses: Your current yearly spending
- Savings Rate: Percentage of income you save
- Current Investments: What you've already saved
- Expected Return: Investment growth rate
- FIRE Number: How much you need invested
- Years to FIRE: Timeline to financial independence
The Formula Explained
FIRE Number = Annual Expenses × 25 (based on 4% withdrawal rule)
Years to FIRE depends on savings rate more than income:
- 10% savings rate ≈ 51 years to FIRE
- 25% savings rate ≈ 32 years
- 50% savings rate ≈ 17 years
- 75% savings rate ≈ 7 years
The math: Higher savings = less needed AND faster accumulation.
Step-by-Step Example
Path to FIRE Analysis
| Current Situation | Value |
| Annual Income | $100,000 |
| Annual Expenses | $60,000 |
| Savings Rate | 40% |
| Current Investments | $150,000 |
| FIRE Calculation | Result |
| FIRE Number (25×) | $1,500,000 |
| Savings per Year | $40,000 |
| Years to FIRE | ~13 years |
At 40% savings rate with $150K head start, FIRE in 13 years!
Frequently Asked Questions
What is FIRE (Financial Independence, Retire Early)?
FIRE is a lifestyle movement focused on extreme saving (50-70%+ of income) to build enough wealth to retire decades early. "Financial independence" means investment income covers expenses—work becomes optional. FIRE adherents typically aim to retire in their 30s-50s rather than 60s.
What is my FIRE number?
Your FIRE number is how much you need invested to retire safely. The standard formula: Annual Expenses × 25, based on the 4% safe withdrawal rate. If you spend $50,000/year, you need $1.25 million. For more security, some use 30× or 33× (3-3.3% withdrawal).
Is the 4% rule safe for 40+ year retirements?
The 4% rule was researched for 30-year retirements. For 40-50+ year early retirements, some concerns exist: (1) More time for bad sequences of returns, (2) More inflation exposure. Many FIRE practitioners use 3-3.5% or plan for flexible spending. Having income sources (part-time work) reduces risk.
What's the difference between LeanFIRE, FatFIRE, and BaristaFIRE?
LeanFIRE: Minimal expenses, smaller portfolio needed (~$40K/year spending). FatFIRE: Maintaining higher lifestyle ($100K+/year spending). BaristaFIRE: Semi-retired with part-time work covering some expenses (smaller portfolio needed). CoastFIRE: Enough invested that compounding alone will fund traditional retirement.
How do I handle healthcare before age 65?
Healthcare is the biggest early retirement challenge in the US. Options: (1) ACA marketplace plans (subsidy-eligible for lower income), (2) Spouse's employer coverage, (3) Part-time work with benefits, (4) Healthcare sharing ministries, (5) Move abroad (lower costs). Budget $10,000-$25,000/year for a family.
How much do I need to save to retire early?
Savings rate is the key variable. At 50% savings rate, you can retire in ~17 years of work. At 25%, it takes ~32 years. At 75%, only ~7 years. The math works because high savings both reduces the amount needed AND accelerates accumulation. Cutting expenses is powerful.
Can I access retirement accounts before 59½?
Yes, using strategies like: (1) Roth conversion ladder—convert IRA to Roth, wait 5 years, withdraw contributions tax-free. (2) Rule 72(t) / SEPP—substantially equal periodic payments. (3) Taxable brokerage accounts—no age restrictions. (4) Roth contributions—can withdraw anytime tax-free. Plan your account access before retiring.
What are the risks of early retirement?
Key risks: (1) Sequence of returns—early market crash depletes portfolio, (2) Healthcare costs, (3) Inflation over 40+ years, (4) Lifestyle creep—spending more than planned, (5) Boredom/purpose—work provides identity for many. Planning for flexibility and having backup income options reduces risks.
Key Points to Remember
- Savings rate matters most: More important than income or returns
- 25× expenses is the target: But consider 30-33× for extra safety
- Healthcare is critical: Budget for it before 65
- Access strategies exist: You can use retirement accounts before 59½
- Flexibility helps: Part-time work or variable spending adds security