Example FIRE calculation
If you spend $40,000 per year and use the 4% rule, your rough FIRE number is $1,000,000: $40,000 x 25.
Financial independence
FIRE calculator
A FIRE calculator estimates the portfolio size required to support annual spending without relying on active income. Use it to test savings rate, expenses, and withdrawal assumptions.
Estimate your financial independence number, savings gap, and retirement timeline with a free FIRE calculator for long-term planning.
Annual expenses x 25 = approximate FIRE number
FIRE planning mistakes to avoid
- Using gross income instead of actual yearly spending.
- Ignoring taxes, health care, housing, and inflation.
- Treating one return assumption as a certain future outcome.
How to estimate your FIRE number
- 1. Enter annual spending, not just income.
- 2. Choose a withdrawal rate that matches your risk tolerance.
- 3. Add current savings and monthly contributions.
- 4. Compare conservative and optimistic return assumptions.
FIRE calculator FAQ
What does FIRE mean?
FIRE means Financial Independence, Retire Early. It focuses on building enough invested assets to cover living expenses.
What is the 25x rule?
The 25x rule estimates a FIRE number by multiplying annual expenses by 25, which corresponds to a 4% withdrawal rate.
Is a FIRE calculator a retirement guarantee?
No. It is a planning estimate. Real results depend on market returns, inflation, taxes, spending changes, and personal risk tolerance.