Financial Independence Retire Early (FIRE) Calculator

FIRE Calculator

Calculate your path to Financial Independence and Early Retirement

Financial Information

Annual Living Expenses ($)

Current Savings ($)

Annual Savings ($)

Investment Parameters

Safe Withdrawal Rate (%)

Expected Investment Return (%)

Expected Inflation Rate (%)

Personal Information

Current Age

Target Retirement Age

Life Expectancy

FIRE Projections

FI Number

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USD

Savings needed for financial independence

Years to FI

-

-

Time until financial independence

Savings Rate

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of income

Current savings rate percentage

Progress to FI

$0

FI Number

Detailed Projections

FIRE Strategy Tips

Based on your inputs:

• Consider increasing your savings rate to reach FI faster
• Review your investment portfolio for optimal returns
• Track expenses carefully to identify savings opportunities

This calculator provides estimates only. Actual results may vary. Print Plan

The FIRE (Financial Independence, Retire Early) Calculator is a powerful tool designed to help individuals determine how much they need to save and invest to achieve financial independence and retire early. Whether you aim to retire at 40, 50, or earlier, this calculator helps you estimate your target savings, required investment returns, and sustainable withdrawal rates.

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Key Components of a FIRE Calculator

An effective FIRE calculator should include the following inputs and outputs:

1. Basic Financial Inputs

• Current Age & Target Retirement Age

• Annual Living Expenses (Current & Projected Retirement Spending)

• Current Savings/Investments

• Annual Savings Rate (% of income saved)

2. Investment Assumptions

• Expected Annual Return on Investments (e.g., 5-7% after inflation)

• Withdrawal Rate in Retirement (Typically 3-4% for the "4% Rule")

3. Retirement Projections

• Target Financial Independence Number

  $$\text{FI Number}=\frac{\text{Annual Expenses}}{\text{Withdrawal Rate}}$$

  *(Example: $40,000 expenses ÷ 0.04 = $1,000,000 needed)*

• Years to Reach FI (Based on savings rate and investment growth)

• Projected Portfolio Value Over Time

4. Adjustments & Scenarios

• Inflation Adjustments (Real vs. nominal returns)

• Tax Considerations (Roth vs. Traditional accounts, capital gains)

• Healthcare & Unexpected Costs

• Side Income/Passive Income Streams (Rental income, dividends, etc.)

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How to Calculate Your FIRE Number

Step 1: Determine Annual Expenses

Track your current spending and estimate retirement costs (may be lower if mortgage is paid off).

Step 2: Apply the 4% Rule (or 3.5% for Extra Safety)

$$\text{FI Number}=\text{Annual Expenses}\times 25$$

*(Example: $50,000/year × 25 = $1,250,000 needed)*

Step 3: Estimate Time to Reach FI

Use the Rule of 72 or a compound interest formula:

$$\text{Years to FI}=\frac{\log (\frac{\text{FI Number}}{\text{Current Savings}})}{\log (1+\text{Annual Return})}$$

Step 4: Adjust for Savings Rate

Higher savings rates = faster retirement.
(Example: Saving 50% of income can lead to FI in ~17 years at 7% returns.)

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Example FIRE Calculation

Parameter	Value
Current Age	30
Target Retirement Age	45
Annual Expenses	$40,000
Current Savings	$100,000
Annual Savings Rate	$30,000 (50% of income)
Expected ROI (after inflation)	6%
Withdrawal Rate	4%

Calculations:

• FI Number Needed: $40,000 ÷ 0.04 = $1,000,000

• Years to FI: ~14 years (using compound growth projections)

• Projected Portfolio at 45: ~$1,050,000

(Note: Results vary based on market performance.)

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Types of FIRE Strategies

1. LeanFIRE – Minimalist lifestyle (<$40k/year expenses).

2. FATFIRE – Luxe retirement ($100k+/year spending).

3. BaristaFIRE – Semi-retirement with side income.

4. CoastFIRE – Stop saving early, let investments grow.

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Key Benefits of Using a FIRE Calculator

✅ Clear Financial Goal Setting – Know exactly how much you need.
✅ Track Progress Over Time – Adjust savings and investments.
✅ Test Different Scenarios – "What if" analysis (market crashes, higher spending).
✅ Stay Motivated – Visualize your path to early retirement.