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FIRE Calculator

Calculate when you can retire early using the 4% rule and compare FIRE strategies

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What is FIRE?

The Power of FIRE

FIRE stands for Financial Independence, Retire Early. It's a lifestyle movement focused on extreme savings and investing to achieve financial independence much earlier than traditional retirement age (65). The core principle: save and invest aggressively (typically 50-70% of income) so your investments can support your living expenses indefinitely.

By saving 50% of your income, you could potentially retire in just 17 years. At 60% savings, that drops to ~12 years. Compare this to traditional retirement planning at 10-15% savings, which takes 40+ years. Use our{' '} budget planner {' '}to find ways to increase your savings rate and track your progress with our{' '} net worth tracker .

The 4% Rule Explained

Example Calculation

The 4% Rule is the foundation of FIRE calculations. It states that you can safely withdraw 4% of your portfolio annually in retirement (adjusted for inflation) with a very high probability of not running out of money over a 30+ year retirement.

Annual Expenses: $40,000

FIRE Number = $40,000 Ă· 0.04 = $1,000,000

With $1 million invested, you can withdraw $40,000/year (4%) to cover your expenses while your portfolio continues growing at ~7% annually (after inflation).

FIRE Strategies Explained

Lean FIRE

Regular FIRE

Fat FIRE

Coast FIRE

Barista FIRE

Minimalist lifestyle with lower annual expenses (typically $25k-$40k/year). Requires less money to retire but demands frugal living. Best for those who value simplicity and minimal material possessions.

Traditional FIRE approach maintaining your current lifestyle ($40k-$100k/year). Balanced between comfort and early retirement. Most common FIRE target for middle class.

Luxury retirement with higher spending ($100k+/year). No compromises on lifestyle, travel, or comfort. Requires significant wealth accumulation but offers maximum freedom.

Save enough early that investment growth alone will reach your FIRE number by age 65, without additional contributions. You can stop saving and work less stressfully knowing retirement is secured.

Semi-retirement with part-time work covering living expenses while your portfolio grows untouched. Popular for those wanting health insurance benefits (Starbucks, Costco) or social connection from work.

Why the 25x Rule Works

The "multiply by 25" rule comes from inverting the 4% withdrawal rate:

  • • If you withdraw 4% per year: 1 Ă· 0.04 = 25
  • • This assumes your investments grow at least 7% annually (covering 4% withdrawal + 3% inflation)
  • • Your principal remains intact or continues growing
  • • Based on historical stock market performance since 1926

The Trinity Study

The 4% rule is based on the Trinity Study, landmark research published in 1998 analyzing historical portfolio performance from 1926-1995. Key findings:

  • 4% withdrawal rate: 95% success rate over 30 years (75% stocks / 25% bonds)
  • 3% withdrawal rate: Nearly 100% success rate over 30+ years
  • Higher stock allocation: Generally better long-term outcomes
  • Study was updated in 2011 and validated through the 2008 financial crisis

How to Accelerate Your FIRE Journey

1. Increase Your Savings Rate

2. Optimize Your Investments

3. Reduce the Big Three

4. Consider Geo-Arbitrage

The single most powerful factor. Every 10% increase in savings rate can shave 5-10 years off your FIRE timeline. Use our{' '} budget planner {' '}to find areas to cut expenses and increase income (side hustles, career advancement).

Max out tax-advantaged accounts (401k, IRA, HSA). Use low-cost index funds (0.05% expense ratio vs 1%+ saves thousands). Calculate your returns with our{' '} compound interest calculator {' '}to see the power of consistent contributions. Maintain high stock allocation (80-100%) for growth during accumulation phase.

Housing, transportation, and food typically account for 60-70% of expenses. Use our{' '} budget planner {' '}to analyze these categories. House hacking, biking/public transit, and home cooking can dramatically increase your savings rate without feeling deprived.

Your FIRE number depends entirely on your expenses. Living in a lower cost of living area (or country) can cut your FIRE number in half, meaning you reach FIRE twice as fast.

Methodology & Sources

Trinity Study (1998)

Updated Trinity Study (2011)

Bengen's Research (1994)

Vanguard Research - Asset to Income

Historical Market Returns

FIRE Community Resources

Our FIRE calculator is based on academically validated research and historical market data:

The foundational research establishing the 4% safe withdrawal rate based on historical portfolio performance from 1926-1995.

Source: AAII Journal - Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable

Revalidated the 4% rule through the 2000 dot-com crash and 2008 financial crisis, confirming the safety of the withdrawal rate.

Source: Updated Trinity Study PDF

William Bengen's original research that first identified the 4% rule using historical data from 1926-1976.

Source: Determining Withdrawal Rates Using Historical Data

Modern validation of withdrawal rate strategies and portfolio management in retirement.

Source: Vanguard - From Assets to Income

S&P 500 real returns (after inflation): 7% annually from 1926-2023. Used as default expected return rate.

Source: NYU Stern - Historical Returns on Stocks, Bonds and Bills

Additional methodologies and real-world FIRE implementation strategies from leading FIRE blogs and communities.

Disclaimer: This calculator provides educational estimates based on historical data and academic research. Past performance does not guarantee future results. Actual investment returns, inflation, and life circumstances vary. Consider consulting a financial advisor for personalized retirement planning.

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Related Tools

Explore these calculators to accelerate your FIRE journey and manage your plan end‑to‑end:

Budget Planner — raise your savings rate Compound Interest — model contributions and returns Millionaire Calculator — milestone timeline Emergency Fund — stay invested through volatility Retirement Planning Suite — withdrawal strategy Net Worth Tracker — track overall progress Paycheck Breakdown — automate contributions Global Income Percentile — context for income

Key Financial Terms

Understand the essential concepts behind this calculator

FIRE (Financial Independence, Retire Early)

A movement focused on saving aggressively (50-70% of income) to retire decades earlier than traditional retirement age.

Learn more →

Safe Withdrawal Rate (4% Rule)

The percentage of your retirement portfolio you can withdraw annually without running out of money, historically around 4%.

Learn more →

Wealth Building

The process of systematically increasing your net worth over time

Learn more →
View all financial terms in our glossary →

Frequently Asked Questions

Common questions about the FIRE Calculator

FIRE (Financial Independence Retire Early) is a movement focused on extreme savings (typically 50-70% of income) and investing to retire decades earlier than traditional retirement age. It works by building a portfolio large enough that the 4% safe withdrawal rate covers your annual expenses indefinitely, allowing your investments to support your lifestyle without traditional employment.
Learn More

Federal Reserve Survey of Consumer Finances

The most authoritative source for U.S. household net worth data. Conducted every 3 years with ~6,000 families.
→Source: Federal Reserve - Survey of Consumer Finances(2022)

Average vs. Median Net Worth by Age (2022 Data)

• Under 35: Median $39,040 | Average $183,500
• 35-44: Median $135,600 | Average $549,600
• 45-54: Median $246,700 | Average $975,800
• 55-64: Median $364,270 | Average $1,566,900
• 65-74: Median $409,900 | Average $1,794,600
• 75+: Median $335,600 | Average $1,624,100
→Source: Federal Reserve SCF 2022 Chartbook(2022)

Why Average is Higher Than Median

Median represents the middle household (50th percentile). Average is skewed higher by ultra-wealthy households. Median is a better benchmark for typical American households.
→Source: U.S. Census Bureau - Wealth Inequality Visualization(2022)

Net Worth by Income Percentile (2022)

• Bottom 50%: Median $27,970 (2.6% of total wealth)
• 50-90th percentile: Median $379,700 (36.5% of total wealth)
• 90-99th percentile: Median $2,265,000 (36.6% of total wealth)
• Top 1%: Median $16,740,000 (24.3% of total wealth)
→Source: Federal Reserve - Distribution of Household Wealth(2022)

Components of Net Worth

Net worth = Total Assets - Total Liabilities

Assets include: Home equity, retirement accounts (401k, IRA), investment accounts, vehicles, cash/savings

Liabilities include: Mortgage, student loans, credit cards, auto loans, personal loans
→Source: CFPB Financial Education Glossary(2025)

Millionaire Statistics (U.S.)

• ~14.6 million millionaire households in U.S. (2024)
• Represents ~10.8% of all U.S. households
• Average age of first-time millionaire: 59 years old
→Source: UBS Global Wealth Report(2024)

Tip

Focus on your personal financial goals rather than comparisons. These benchmarks provide context, not targets. Your ideal net worth depends on your age, income, goals, and lifestyle.

⚠️ Tip