FIRE Calculator

Category: Retirement
- May 02, 2025
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Calculate when you can achieve Financial Independence and Retire Early based on your savings rate, expenses, and investment returns.

Current Financial Status

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Income & Expenses

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Investment Parameters

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Advanced Options

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About FIRE (Financial Independence, Retire Early)

FIRE is a financial movement focused on extreme savings and investment to enable early retirement. The core principles involve saving a significant portion of your income (often 50-70%) and investing it to build a portfolio that can sustain your expenses indefinitely.

Key FIRE Concepts
  • The 4% Rule: A commonly used guideline suggesting that you can safely withdraw 4% of your portfolio value annually in retirement without depleting your savings.
  • Savings Rate: The percentage of your income that you save. This is the most important factor in determining how quickly you can achieve FIRE.
  • FIRE Number: The amount of money you need to have invested to support your lifestyle indefinitely, typically calculated as 25 times your annual expenses (for a 4% withdrawal rate).
  • Financial Independence: The point where your passive income from investments exceeds your expenses, making paid work optional.
FIRE Variations
  • Traditional FIRE: Focused on accumulating 25-30 times your annual expenses before retiring.
  • Lean FIRE: Retirement on a minimal budget, often under $40,000 per year for a household.
  • Fat FIRE: Retirement with a more generous budget, typically over $100,000 per year.
  • Barista FIRE: Semi-retirement where you work part-time to cover some expenses while your investments grow.
  • Coast FIRE: Having enough invested that you only need to cover your current expenses, without adding more to your retirement accounts.

Understanding the FIRE Calculator

The FIRE Calculator helps you find out when you can achieve Financial Independence and Retire Early. It takes into account your savings rate, expenses, and expected Investment-roi-calculator/">investment returns. By entering your details, you can see how long it will take to reach your Retirement goals.

Your Financial Snapshot

To use the calculator, you'll start with your current financial status. Input your age and current savings. Knowing where you stand is essential for planning your future. You can see how your current savings stack up against your retirement dreams.

Income and Spending Insights

Next, you’ll provide information about your income and expenses. This includes your annual income after tax and your yearly expenses. This information is key because it helps calculate your savings rate. A clearer picture of your cash flow will guide your FIRE journey.

Important Investment Factors

Investment parameters play a major role in your calculations. You’ll enter expected annual returns, your safe withdrawal rate, and the expected inflation rate. These numbers can significantly affect how much money you need to retire comfortably.

Advanced Features of the FIRE Calculator

  • Post-retirement income: If you plan to earn money after retiring, you can include that.
  • Expected tax rate: Estimate your tax rate during retirement for a more accurate result.
  • adjust for inflation: Decide whether or not you want to adjust your expenses for inflation.

These advanced options allow for a tailored approach to your retirement planning. They help you consider various scenarios to achieve your goals.

Getting Your Results

Once you input all necessary information, the calculator provides several results. You’ll see how many years until FIRE and what your retirement age will be. Additionally, it shows your final portfolio value and annual withdrawal amounts. This gives you a strong idea of your financial future.

Understanding Your FIRE Number

Your FIRE number is the amount you need to retire comfortably. The calculator uses the 4% rule to give you a target amount. For instance, if your annual expenses are $40,000, you’ll need $1,000,000 to support your lifestyle. Knowing this number helps you work towards your goal strategically.

About the FIRE Movement

The FIRE movement focuses on saving aggressively and investing wisely to retire early. Key concepts include the 4% rule, savings rate, and financial independence. By understanding these principles, you can make informed decisions about your finances and work towards a more fulfilled retirement.