Your FIRE number is the invested amount that can cover your yearly spending forever at a safe withdrawal rate. Enter your spending, savings and contributions to see the target, your progress and your projected FIRE age.
| Withdrawal rate | FIRE number | Time to reach |
|---|
| Monthly saving | Time to FIRE | FIRE age |
|---|
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Turn a vague goal into one number to aim for.
Compare spending less with saving more.
Watch the percentage climb year by year.
FIRE stands for Financial Independence, Retire Early. Once your investments can fund your spending, working becomes optional. The two levers are the size of the target, set by your spending, and how fast you reach it, set by your savings rate and returns.
Cutting spending helps twice: it lowers the FIRE number and frees up money to invest. That is why a high savings rate shortens the time to FIRE so dramatically.
A minimal budget and a smaller target.
Your current lifestyle, fully funded.
A generous budget with a large safety margin.
FIRE number = yearly spending / safe withdrawal rate. With a 4% rate this is 25 times your annual spending, so $40,000 a year needs $1,000,000.
Research on historical US stock and bond returns found that withdrawing 4% of the starting portfolio, adjusted for inflation, lasted at least 30 years in most periods. Early retirees often use 3.25% to 3.5% for longer retirements.
Use a real (after-inflation) return, such as 4% to 6% for a stock-heavy portfolio. Then the FIRE number and your spending stay in today’s money.
Reliable income you will have in retirement, such as a pension, rental income or part-time work. It reduces the spending your portfolio must cover.
Only if you include them. Add the taxes you expect to pay on withdrawals to your yearly spending for a safer target.
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