FIRE Number Calculator
Calculate Your Freedom Number
Your FIRE number is the amount of invested assets you need to live off the returns indefinitely.
Annual Retirement Expenses
Expense Multiplier / Safe Withdrawal Rate (SWR)
Your FIRE Number
$0
Based on a 4.0% Safe Withdrawal Rate.
What's Your FIRE Number?
Your FIRE (Financial Independence, Retire Early) Number is the amount of invested assets you need to accumulate so that you can live off the investment returns indefinitely without ever having to work for money again.
It's most commonly calculated using the 4% Rule, which suggests you can safely withdraw 4% of your portfolio each year. This is equivalent to multiplying your desired annual expenses by 25. This calculator helps you determine your unique FIRE number based on your spending and desired Safe Withdrawal Rate (SWR).
How to Use This Calculator
1. Estimate Annual Expenses
Enter your estimated annual expenses in retirement. This is the most important factor in your calculation. You can sync this with your profile for convenience.
2. Choose a Safe Withdrawal Rate (SWR)
Use the slider to select your desired Safe Withdrawal Rate, which is represented as a multiplier. A multiplier of 25 is equivalent to the popular 4% SWR.
3. Determine Your FIRE Number
The calculator multiplies your annual expenses by your chosen multiplier to determine the total net worth you need to achieve Financial Independence.
The "Why" Behind the 4% Rule
The 4% Rule comes from a famous 1998 study called the "Trinity Study." Researchers analyzed historical stock and bond returns to see how long portfolios would last using various withdrawal rates. They found that a 4% initial withdrawal rate, adjusted for inflation each year, had a very high success rate of lasting for at least 30 years.
This rule is a guideline, not a law. A lower withdrawal rate (like 3.5% or 3%) increases the probability of your money lasting forever, especially for very long retirements. A higher rate increases the risk of running out of money. Your choice depends on your risk tolerance and the length of your expected retirement.
You've Got Your Number. What's Next?
Knowing your goal is the first step. Now you can start planning your journey to reach it.
- Estimate Your Timeline to project how long it will take to reach your FIRE number.
- Optimize Your Savings Rate, your most powerful lever for reaching FI sooner.
- Visualize Your Growth and see how compound interest will build your wealth.
Frequently Asked Questions
What is a FIRE Number?
Your FIRE (Financial Independence, Retire Early) Number is the total amount of invested assets you need to accumulate so that you can live off the investment returns indefinitely without ever having to work for money again. It's typically calculated by multiplying your expected annual expenses in retirement by a number between 25 and 33.
What is a Safe Withdrawal Rate (SWR)?
The Safe Withdrawal Rate is the percentage of your portfolio that you can withdraw each year in retirement with a low probability of running out of money. The 4% rule, based on the Trinity Study, is a common SWR, which corresponds to a FIRE Number that is 25 times your annual expenses.
What are the different types of FIRE?
There are several variations of FIRE, including: 'Lean FIRE' (retiring with a minimal, frugal budget), 'Fat FIRE' (retiring with a large budget for a more luxurious lifestyle), and 'Barista FIRE' (having enough saved to quit a traditional high-stress job and work part-time in a low-stress job to cover current expenses while investments continue to grow).
Should my FIRE number account for taxes?
Yes, this is a critical consideration. The annual expenses you enter should be your estimated post-tax spending. Your withdrawal strategy must account for capital gains and income taxes so that your net withdrawal covers your expenses. Many people use tax-advantaged accounts like a Roth IRA or a Roth Conversion Ladder to minimize taxes in retirement.