This FIRE calculator shows two things: your FIRE number, the amount you need invested to live off your portfolio, and your FIRE age, the age you could reach it at your current savings rate.
Enter amounts in today’s dollars. For help choosing a return, see what rate of return to use for retirement planning.
How to use the FIRE calculator
- Your age: your current age.
- After-tax annual income: your take-home pay for the year.
- Current annual expenses: what you spend in a year now.
- Existing investments: the current balance of your retirement and brokerage accounts.
- Annual investment contributions: how much you add to those accounts each year.
- Investment rate of return: the yearly return you expect on your investments.
- Cash in savings: your current savings account balance.
- Percentage of income contributed to your savings: the share of your income you put into savings each year. Set it to 0 if you only invest.
- Savings rate of return: the interest rate on your savings.
- Projected annual expenses in retirement: what you expect to spend each year once you retire, including taxes.
Click Calculate to see two results:
- Your FIRE number is 25 times your projected retirement spending. That’s the amount the 4% rule (below) says can support your spending.
- Your FIRE age estimates when your investments and savings could reach your FIRE number at the rates you entered.
Run several scenarios. Small changes to your savings rate or retirement spending can move your FIRE age by years.
How to calculate your FIRE number: the 4% rule
The 4% rule says you can withdraw 4% of your portfolio in your first year of retirement, then raise that amount with inflation each year, with a low chance of running out of money over 30 years. It’s based on historical U.S. stock and bond returns.
To find your FIRE number, multiply your yearly retirement spending by 25. If you’ll spend $40,000 a year, your FIRE number is $1,000,000 ($40,000 × 25).
Early retirees often plan for more than 30 years, so many choose a lower withdrawal rate:
| Withdrawal rate | Multiply spending by | FIRE number at $40,000 a year |
|---|---|---|
| 4% | 25 | $1,000,000 |
| 3.5% | 28.6 | $1,142,857 |
| 3% | 33.3 | $1,333,333 |
Other income lowers the number. If rental income or a part-time job will cover $10,000 a year, you only need to fund the remaining $30,000.
Types of FIRE
- Lean FIRE: retiring on a tight budget, with a smaller FIRE number and an earlier date.
- Fat FIRE: retiring with a larger budget, which needs a much bigger portfolio.
- Barista FIRE: leaving full-time work but keeping a part-time job to cover some expenses or get health insurance.
- Coast FIRE: saving enough early that, with no more contributions, growth alone reaches your FIRE number by a traditional retirement age.
What is the FIRE movement?
FIRE stands for financial independence, retire early. The idea is to save and invest a large share of your income, often 50% or more, so your investments can cover your living costs decades before 65.
For many people, the goal is independence more than retirement: the option to work less, change careers, or stop working on their own schedule.
Is FIRE right for you?
- It takes a high savings rate. That’s easier on a higher income, but cutting expenses matters as much as earning more.
- Healthcare is the biggest unknown. In the U.S., retiring before Medicare eligibility at 65 means paying for your own coverage.
Steps to prepare for early retirement
- Pay off high-interest debt and build an emergency fund.
- Save consistently in tax-advantaged accounts such as a 401(k) and IRA.
- Consider paying down your mortgage early. No housing payment lowers the spending your portfolio has to cover.
- Raise contributions as debts disappear, up to the annual limits.
- Build a bridge account. Withdrawals from most retirement accounts before age 59½ usually carry a 10% penalty. A taxable brokerage account can cover the years between early retirement and 59½.
Important FIRE disclaimers
The 4% rule and this calculator are simplifications. They assume steady returns, and real returns vary from year to year. A bad market in the first years of retirement can do lasting damage. Your spending may also change in ways you don’t expect.
Test several scenarios, and use a lower withdrawal rate if you plan to retire very early.
For a more detailed plan, Empower‘s free tools include a retirement planner that lets you model different scenarios and an annual spending plan.
Plan for more than one income source
- Investments: dividend-paying stocks and bond funds can provide steady income.
- Side income: consulting, freelancing, or a hobby business can reduce how much you withdraw.
- Real estate: rental property, or REITs and real estate investing apps if you don’t want to be a landlord.
