FIRE Calculator: Financial Independence Retire Early
September 27, 2025
What is FIRE? Financial Independence Retire Early Explained
Understanding the FIRE movement and how to calculate your path to financial independence
The FIRE Movement
FIRE (Financial Independence Retire Early) is a lifestyle movement focused on extreme savings and investment that allows participants to retire far earlier than traditional retirement plans would allow. The key principle is to save and invest 50-70% of income to accumulate 25-30 times your annual expenses, enabling you to live off investment returns using the 4% withdrawal rule.
FIRE Variations
LeanFIRE
Living on $40,000 or less per year. Requires approximately $1 million in investments. Focuses on extreme frugality and minimalist lifestyle.
Traditional FIRE
Maintaining your current lifestyle in retirement. Requires 25x your annual expenses. Most common FIRE approach using the 4% withdrawal rule.
FatFIRE
Living luxuriously in retirement with $100,000+ annual expenses. Requires $2.5+ million in investments for a comfortable lifestyle.
BaristaFIRE
Partial financial independence with part-time work covering some expenses. Allows earlier "retirement" with reduced investment requirements.
CoastFIRE
Having enough invested that compound growth will reach FIRE by normal retirement age. Allows you to "coast" without additional retirement savings.
The 4% Rule
The cornerstone of FIRE planning is the 4% withdrawal rule, based on the Trinity Study. This rule suggests that you can safely withdraw 4% of your investment portfolio annually in retirement without running out of money over a 30-year period.
FIRE Number Formula:
FIRE Number = Annual Expenses × 25
Or: FIRE Number = Annual Expenses ÷ 0.04
Example: $60,000 annual expenses × 25 = $1,500,000 FIRE number
Key FIRE Principles
- High Savings Rate: Save 50-70% of income (vs. traditional 10-15%)
- Aggressive Investing: Invest in low-cost index funds for long-term growth
- Expense Optimization: Reduce unnecessary expenses without sacrificing happiness
- Income Maximization: Increase earning potential through career advancement or side hustles
- Geographic Arbitrage: Consider lower-cost living areas to stretch your FIRE number
- Tax Optimization: Use tax-advantaged accounts and strategies
Is FIRE Right for You?
FIRE Might Work If:
- You have a high income relative to expenses
- You're willing to live frugally for years
- You have clear post-retirement goals
- You're comfortable with investment risk
- You want flexibility and time freedom
Consider Carefully If:
- You have high healthcare needs
- You support dependents financially
- You already plan on working for a long time
- You prefer guaranteed income sources
- You're risk-averse with investments
FIRE Calculator
Calculate your path to Financial Independence and Early Retirement with comprehensive parameters
Your FIRE Results
Based on your inputs, here's your path to Financial Independence
FIRE Number
25x annual expenses
Years to FIRE
At age 48
Current Progress
$1,430,000.00 to go
Success Rate
Historical success
Choose Your FIRE Type
Click on a FIRE type below to select it and see your personalized calculations
Financial Breakdown
Risk Assessment
Recommendations
Ready to Start Your FIRE Journey?
Choose the right investment platform to maximize your path to Financial Independence. Compare top brokerages and tax-advantaged accounts to accelerate your FIRE timeline.
FIRE Journey Projection
This chart shows your projected portfolio growth toward different FIRE targets. The solid blue line shows your portfolio, while dashed lines show various FIRE targets.
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