About FIRE Calculator
The FIRE (Financial Independence, Retire Early) Calculator helps you determine the portfolio size needed to achieve financial independence using the safe withdrawal rate method. Based on the classic 4% rule popularized by the Trinity Study, your FIRE number is calculated as 25 times your annual spending. The tool projects your portfolio growth year by year using your current savings, monthly contributions, and expected annual return, showing exactly when your portfolio will reach your FIRE target. You can adjust variables like return rate, withdrawal rate, and spending to explore different scenarios, including Coast FIRE, Lean FIRE, or Fat FIRE approaches.
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Frequently Asked Questions
What is the FIRE number and how is it calculated?
Your FIRE number is the portfolio size you need to achieve financial independence. It is calculated by dividing your annual spending by your safe withdrawal rate. Using the 4% rule, the FIRE number is 25 times your annual spending (spending / 0.04). For example, if you spend $40,000 annually, you need a $1,000,000 portfolio.
What is the 4% rule?
The 4% rule, based on the Trinity Study, suggests that you can withdraw 4% of your portfolio annually (adjusted for inflation) with a high probability of your savings lasting at least 30 years. It is a widely used guideline for retirement planning, though some experts recommend a lower withdrawal rate in the current low-yield environment.
What are the different types of FIRE?
There are several FIRE approaches: Lean FIRE (retiring on a minimal budget under $40,000/year), Fat FIRE (retiring with a higher spending level over $80,000/year), Coast FIRE (having enough saved so it grows to your FIRE number by retirement age without additional contributions), and Barista FIRE (working part-time to cover some expenses while your portfolio covers the rest).
Is the FIRE Calculator free to use?
Yes, the FIRE Calculator is completely free to use with no registration or limits. It provides projections based on historical average returns and standard withdrawal rate assumptions.