How this FIRE calculator works
This tool estimates your FIRE number (the investment portfolio size needed to cover your living expenses) and simulates how long it may take you to reach financial independence based on your current savings, annual contributions, and expected investment returns.
What is a FIRE number?
Your FIRE number is typically calculated using the 4% rule, which suggests you can withdraw about 4% of your portfolio per year. A simple way to estimate your FIRE number is:
Annual expenses × 25
Frequently asked questions
Is this calculator accurate?
It’s a planning tool that uses standard assumptions. Real-world results vary based on market performance, taxes, inflation, and changes in your income or expenses.
Does this include inflation?
This version does not model inflation directly. A simple approach is to use a return rate that is closer to your expected real return (after inflation).
What return rate should I use?
Many people use 5–8% as a long-term estimate depending on their investment mix. When in doubt, use a conservative number.
What if I plan to increase contributions over time?
This version assumes a steady annual contribution. Later we can add an option for increasing contributions yearly.
Can I retire early with less than 25× expenses?
Some people use leaner assumptions (like 3–3.5% withdrawal) for more safety, or higher withdrawal rates for more risk. You can experiment by increasing or decreasing your expenses to see different outcomes.