How the FIRE number works
Spending sets the target
Your FIRE number is yearly spending divided by the withdrawal rate. At 4% that's 25 times what you spend: $50,000 a year needs $1.25M.
Savings rate sets the speed
What you keep of your take-home pay matters more than the return. Saving half your income gets most people there in under 20 years.
Lean, regular or fat
Same math, different budgets. Use the lifestyle buttons to see how a $40K, $60K or $100K retirement moves the date.
Limits of this calculator
- It assumes a steady real return every year. Real markets are lumpy, and a crash right after you retire hurts most.
- Income and spending stay flat in today's dollars. Raises, kids or a paid-off mortgage will change the picture.
- Taxes on withdrawals aren't modeled. Enter spending that already includes the taxes you expect to pay.
What next
Questions
What does FIRE stand for?
Financial Independence, Retire Early. Financial independence is the point where investments cover your spending; retiring early is optional.
What is a good savings rate for FIRE?
There is no single number, but rates of 40–60% of take-home pay are common among people who reach FIRE in 10–20 years.
What is the difference between Lean FIRE and Fat FIRE?
Lean FIRE is a frugal budget, often under $40,000 a year for a household. Fat FIRE allows for a comfortable one, often $100,000 or more. The calculation is the same.
Should I count my home equity?
Usually not, unless you plan to sell or downsize. Count only investments you can draw from.