FIRE Calculator
Find your Financial Independence number using the common 25x rule (a 4% safe withdrawal rate), and roughly how long it'll take to get there.
Where the 25x / 4% rule comes from
The 4% rule suggests you can withdraw 4% of a portfolio annually with a low risk of running out of money over a long retirement — so the target portfolio is annual expenses divided by that rate, which comes out to 25 times your annual expenses at 4%.
About the FIRE Calculator
The FIRE Calculator estimates the investment portfolio you need to retire early (Financial Independence, Retire Early) and how many years it may take to get there. It uses your annual expenses, a safe withdrawal rate, your current investments, monthly contributions and an expected return.
The classic rule sets your target at annual expenses divided by the withdrawal rate; at 4 percent that is 25 times annual expenses. The 4 percent figure comes from historical research on U.S. portfolios over 30-year retirements, and a longer retirement may call for a lower rate. The projection assumes a constant return, while real markets fluctuate and inflation changes expenses, so use it for rough planning and revisit it yearly.
How to use it
- Enter your annual expenses and a withdrawal rate.
- Enter your current investments and monthly contribution.
- Enter an expected annual return you consider realistic after inflation.
- Read the target amount and estimated years.
Tips and good to know
- Using a real, after-inflation return keeps numbers in today's money.
- Test several return assumptions, including pessimistic ones.
- Include healthcare and taxes in expenses.
Frequently asked questions
Is 4 percent safe?
It is a rule of thumb, not a guarantee.
Should I use nominal or real returns?
Real returns keep the projection in today's purchasing power.
Is it financial advice?
No; consult a qualified adviser.