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Financial Independence, Retire Early (FIRE) Calculator: Guide Your Path

Try our FIRE calculator to discover how much you'll need to retire early and how soon you can get there.
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Our FIRE calculator is designed to give you a rough idea of two things:

  1. How much money you need to retire early (based upon your current and projected lifestyle)
  2. When you can retire early

You can (and should) tweak the numbers to see how different variables affect your outcome. These variables include:

Be sure to read about how the FIRE calculator works and important disclaimers following the calculator.

How the FIRE Calculator works

The purpose of the calculator is to help you determine what’s necessary for you to achieve FIRE status. It can help you to create specific monetary goals, and to know what steps you need to take now to reach those goals.

To use the FIRE calculator you’ll need to provide the following information:

  • Current age
  • After-tax annual income
  • Yearly expenses/cost of living
  • Current investment portfolio amount
  • Yearly contributions toward your investment portfolio
  • Your expected rate of return on your investments (you can use the slider to adjust the percentage)
  • Your current savings account balance (from all accounts)
  • The percentage of income you contribute to your savings accounts
  • Your savings rate of return (interest rate)
  • Your estimated retirement expenses on an annual basis, including income taxes

Once you’ve provided the above information, you can hit the “Calculate” button near the bottom.

You will then be shown your FIRE goal, which is the amount of money you should have to maintain your current standard of living once you reach retirement. The calculator will also provide your FIRE age, which is the age when you can expect to reach financial independence, achieve FIRE and be able to retire.

Feel free to run different scenarios through the calculator. You may find you’ll need to contribute more money to your investment and retirement accounts, or experiment with different rates of return to meet your goals.

The F.I.R.E. Movement: Achieving Financial Independence to Retire Early

The F.I.R.E. Movement, which stands for Financial Independence, Retire Early, has captured the imagination of many in the financial community. With a strategic approach to savings and investments, the goal is to retire long before the traditional age. But what does it entail, and is it right for you?

The Philosophy Behind F.I.R.E.

At its core, the F.I.R.E. Movement revolves around the concept of freeing oneself from the conventional working cycle well before the age of 65. This is achieved by pursuing aggressive savings strategies, often targeting a savings rate of 50-75% of the annual growth rate one’s income. The math is simple: the less you spend and the more you save and invest, the quicker you can achieve financial freedom.

Decoding the F.I.R.E. Strategy

  1. Aggressive Savings: Contrary to popular belief, the journey to early retirement is not just about earning more. It is equally about spending less. Maintaining a frugal lifestyle allows devotees to save a substantial part of their income.
  2. Investment Prowess: Merely saving isn’t enough. F.I.R.E. enthusiasts often look to grow their savings through wise investments, maximizing returns, and leveraging the power of compound interest.
  3. Financial Independence over Early Retirement: For many in the F.I.R.E. community, the ultimate goal isn’t just early retirement. It’s about having the freedom to choose one’s path without being tethered to a full-time job.

Invaluable Insights from the F.I.R.E. Movement

  1. The Power of Planning: Start by envisioning your retirement. Understand your goals and chart out a roadmap. The earlier you start, the more achievable your goals become.
  2. Expenses in Check: Financial discipline is key. Regularly review your expenses, differentiate between needs and wants, and stay committed to your budget.
  3. Income Augmentation: While keeping expenses low is vital, looking for avenues to increase your income can accelerate your journey. This could be in the form of promotions, side hustles, or strategic investments.
  4. Prioritize Investments: A cornerstone of the F.I.R.E. philosophy is to make investing habitual. Even if you aren’t saving half of your income, consistently allocating a portion to investments can work wonders over time.

Considering Challenges: Is F.I.R.E. Suitable for All?

The F.I.R.E. Movement, while revolutionary, isn’t without its challenges:

  1. High Income Requirement: Realistically, to save aggressively, a substantial income is often necessary. However, one doesn’t need a six-figure salary to start on the path to financial freedom.
  2. Credit Card Caveats: Some F.I.R.E. advocates encourage using credit cards for rewards. However, the risks can outweigh the benefits if not managed meticulously.
  3. Job Satisfaction: While the allure of early retirement is undeniable, it’s vital to find joy in your profession. Instead of solely aiming to retire early, focus on a fulfilling career journey.

A Stepwise Path to Early Retirement

  1. Debt Elimination & Emergency Funds: Begin by eliminating liabilities and setting up a robust emergency fund to tackle unforeseen challenges.
  2. Allocate 15% to Retirement Accounts: Consistently save a part of your income in tax-advantaged retirement accounts, ensuring you pick strong mutual funds.
  3. Accelerate Mortgage Repayments: Owning your home outright can significantly reduce your monthly expenses, bringing early retirement closer.
  4. Max Out Retirement Contributions: With a home paid off and no debt, consider raising your retirement contributions.
  5. Bridge the Retirement Gap: If aiming for ultra-early retirement, a taxable investment account can act as a bridge until you can withdraw from retirement accounts without penalties.

In conclusion, while the F.I.R.E. Movement offers a tantalizing proposition, it’s essential to tailor its principles to individual needs and circumstances. With meticulous planning, discipline, and determination, the dream of early retirement can become a reality for many.

How do I calculate my FIRE number?

Ah, the elusive FIRE number! It’s the magic figure every FIRE enthusiast is chasing, the amount of money you need saved to declare financial independence and possibly retire early. But how is this number determined? Let’s break it down step by step.

What is the FIRE number?

Before diving into calculations, it’s essential to understand what the FIRE number represents. In a nutshell:

  • It’s your safety net: This is the amount that, when invested wisely, should cover your living expenses indefinitely without you needing to work for money again.
  • Tailored to you: Everyone’s FIRE number is unique, reflecting individual lifestyles, desires, and needs.

Factors to consider

Your FIRE number isn’t just a random figure; it’s derived from various aspects of your current and projected future lifestyle. Consider:

  • Annual expenses: The most significant factor. How much do you (and will you) spend in a year?
  • Anticipated lifespan: While no one can predict the future, it’s good to have an estimate for planning purposes.
  • Expected rate of return: How much do you expect your investments to return each year?
  • Inflation: Over time, the value of money diminishes. Your FIRE number should account for this.
  • Contingency plans: Unexpected expenses or changes in your life can pop up. It’s good to have a buffer.

The 4% Rule

A popular method in the FIRE community is the 4% Rule, also known as the Safe Withdrawal Rate (SWR). Here’s how it works:

  • Basics of the 4% Rule: The idea is that if you withdraw 4% of your investments in the first year of retirement and adjust for inflation after that, you’re unlikely to run out of money for at least 30 years.
  • Calculating your number: Simply take your annual expenses and multiply by 25. For example, if you spend 1,000,000 ($40,000 x 25).

Adjusting for personal circumstances

The 4% Rule is a useful guideline, but it’s not one-size-fits-all. To tailor it to your needs:

  • Adjust the withdrawal rate: If you want to be more conservative, you might consider a 3.5% or 3% withdrawal rate, which would mean multiplying your annual expenses by 28.5 or 33.3, respectively.
  • Consider other income sources: If you have passive income, such as rental properties or royalties, this can lower the amount you need to save.
  • Remember healthcare: Especially for those in countries without universal healthcare, accounting for medical expenses is crucial.

Tools and resources

There are several online calculators and apps to help you determine your FIRE number, taking into account factors like projected returns and inflation. While these are handy, remember they’re just tools; always apply your judgment and perhaps consult with a financial planner.

Some important FIRE disclaimers

The basic math of early retirement — the “4% rule” — is simple: If you save 25 times your annual expenditures, you can then withdraw 4% of cash from your investment portfolio each year to live on.

But this is a dramatic oversimplification that depends on achieving a certain level of long-term investment returns and avoiding long periods of high inflation. (It also requires that you never increase your spending and withdraw an income growth rate of more than 4% a year).

The real world is not a spreadsheet. Your investment returns may vary. You’re also human, and may change your mind someday about how much you want to spend.

Keep this in mind. Test lots of scenarios. FIRE is a journey, not a destination.

If you don’t already use Empower, I highly recommend their powerful free tools, including Investment Checkup and Retirement Planner. The latter is one of the best retirement calculators out there and it’s 100% free. Key features include the ability to run different scenarios and form a full annual spending plan.


Empower is a hybrid digital wealth management company and finance app. In addition to paid investment management and advisory services, it offers a number of useful free tools to help with everything from net worth tracking to saving and retirement planning.

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  • App is completely free to use
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FIRE Income: Plan for Many Sources

When it comes to achieving Financial Independence, Retire Early (FIRE), the approach often doesn’t revolve around just saving every penny. It’s also about diversifying your income sources. Think of it as planting many seeds in your financial garden. Some might grow quickly, some might take time, but in the end, you’ll have a lush forest of revenue streams that can support your retirement dreams. Let’s dive into the concept of diversifying your FIRE income.

1. Why Multiple Income Streams?

Remember the old saying, “Don’t put all your eggs in one basket?” This rings especially true in the world of finance. Having multiple sources of income can cushion you against the unpredictable nature of the economy. One source might dry up, but you’ll have others to fall back on. This provides peace of mind and stability, essential ingredients for a stress-free early retirement.

2. Start With Investments

For many on the FIRE journey, investments are the bread and butter. This could be in the form of stocks, bonds, or real estate. The beauty of investments is their passive nature. Once you’ve made an informed decision and invested your money, it grows on its own (given you’ve done your homework!). Dividend-yielding stocks or rental properties can provide a consistent income, giving you more freedom and flexibility.

3. Side Hustles and Passion Projects

Remember that hobby you always loved but never had the time to monetize? Early retirement is the perfect chance to turn your passions into profit. Whether it’s crafting, writing, photography, or consulting, there’s potential to generate income. Plus, it doesn’t feel like work when you’re doing what you love!

4. Peer-to-Peer Lending

Platforms like LendingClub or Prosper allow you to act as the bank, lending your money to individuals in exchange for interest payments. This can be a fantastic way to earn passive income while diversifying your portfolio of assets. Just remember, like all investments, there’s a risk involved, so do your research and start small.

5. Online Ventures

The digital world is vast and full of opportunities. Setting up an online store, creating a blog, or even offering freelance services on platforms like Upwork or Fiverr can become significant sources of income. The best part? These can be managed from anywhere in the world, fitting perfectly with the nomadic lifestyle many FIRE enthusiasts aspire to.

6. Real Estate Beyond Rentals

Apart from traditional rental properties, there’s a world of real estate opportunities. Think about REITs (Real Estate Investment Trusts) or platforms like Fundrise that allow for crowdfunded real estate investing. These provide a taste of real estate income without the direct responsibilities of being a landlord.

7. Licensing or Royalties

Have you created something unique? Whether it’s an innovative product, a piece of music, or a book, there’s potential to earn royalties or licensing fees. This is a fantastic way to get rewarded continuously for a one-time effort.

8. Teach or Consult

With experience comes wisdom. As someone who has successfully navigated the path to FIRE, there’s a wealth of knowledge you can share. Offering consultancy services or online courses can not only earn you money but also help others achieve their financial dreams.


The FIRE retirement calculator can help you determine how much money you need to retire earlier than you thought. You’ll also learn at what age you’ll be able to retire (which depends on how much you want to spend each year you’re retired).

About the author

Kevin Mercadante

Kevin has 20+ years of experience covering insurance, mortgages, and banking. He holds a Bachelor’s Degree in Finance from Montclair State University and personal finance experience working in CPA firms and mortgage companies.