FIRE Retirement Calculator

Calculate how long it will take to reach financial independence and retire early based on your savings rate and investments.

Disclaimer: This calculator provides estimates based on the information you provide and simplified assumptions. Individual financial situations vary, and market returns are unpredictable. Please consult with a qualified financial advisor before making important financial decisions.

Current Age

Annual Income ($)

Current Savings ($)

Savings Rate (%)

Expected Annual Return (%)

Withdrawal Rate (%)

About Our FIRE Retirement Calculator

Our FIRE (Financial Independence, Retire Early) Calculator is designed to help you map out your journey to financial freedom. By analyzing your current financial situation, savings rate, and investment strategy, it provides estimates on when you could potentially achieve financial independence and retire early.

What is FIRE?

FIRE stands for Financial Independence, Retire Early. It's a movement focused on extreme savings and investment that allows people to retire much earlier than traditional retirement plans would allow. The core principle is to save and invest a significant portion (often 50-70%) of your income for a period of time, allowing you to live off the returns of your investments much earlier than a traditional retirement age.

How the FIRE Calculation Works

The basic formula relies on two key concepts:

1. The 25x Rule (or 4% Rule): You need approximately 25 times your annual expenses saved to retire safely. This is based on a 4% safe withdrawal rate.

2. Savings Rate Impact: The higher your savings rate, the faster you'll reach financial independence.

The time to reach FIRE is calculated using:

How much you currently have saved
How much you save each year (savings rate × income)
Your expected investment returns
Your withdrawal rate in retirement

Key Features:

Calculate the years until you can achieve financial independence
Determine the age at which you can retire early
Calculate the total nest egg required for your retirement
Estimate your annual retirement income
Adjust withdrawal rates to see different scenarios

How to Use:

Enter your current age
Input your annual income
Enter your current savings/investments
Set your savings rate (percentage of income saved)
Enter your expected annual investment return
Set your planned withdrawal rate in retirement
Click "Calculate FIRE Plan" to see your results

Types of FIRE:

Traditional FIRE: Saving around 50-70% of income to retire completely in your 30s or 40s.

Lean FIRE: Living frugally both before and after retirement, requiring a smaller nest egg.

Fat FIRE: Saving for a more luxurious retirement lifestyle, requiring a larger nest egg.

Barista FIRE: Having enough to partially retire, but working part-time for extra income or benefits.

Coast FIRE: Having enough invested that even without additional contributions, your portfolio will grow to support retirement at a traditional age.

Important Considerations:

Market Volatility: No investment return is guaranteed. Markets fluctuate, which can affect your timeline.
Inflation: The calculator assumes your inputs account for inflation.
Lifestyle Changes: Major life events (children, health issues, etc.) can significantly impact your FIRE plans.
Healthcare Costs: Early retirees need to plan for healthcare expenses before Medicare eligibility.
Tax Considerations: Different types of accounts have different tax implications for early withdrawals.

Whether you're just starting your FIRE journey or refining your existing plan, our calculator provides valuable insights to help you make informed decisions about your financial future.

Frequently Asked Questions

Is the 4% withdrawal rule still valid?

The 4% rule (withdrawing 4% of your portfolio in the first year of retirement and adjusting for inflation afterward) was developed based on historical market returns. While it has been a reliable guideline, some financial experts suggest that in today's environment, a more conservative withdrawal rate of 3-3.5% might be safer, especially for early retirees with potentially longer retirement periods. Our calculator allows you to adjust this rate to see different scenarios.

How does inflation affect FIRE calculations?

Inflation erodes purchasing power over time, which is particularly important for early retirees who may have 40+ years in retirement. Our calculator assumes that your expected return rate is a real return (after inflation). If you want to account for inflation separately, you should reduce your expected return by about 2-3% to get a real return rate. Additionally, you should periodically recalculate your FIRE plan to adjust for actual inflation experiences.

What about healthcare costs before Medicare eligibility?

Healthcare is often one of the biggest expenses for early retirees. If you're retiring before age 65 (Medicare eligibility), you'll need to budget for private health insurance or healthcare sharing plans. These costs can be substantial and tend to increase faster than general inflation. Consider adding a specific healthcare budget line to your retirement expenses, and potentially increase your required nest egg by 15-25% to account for these costs.