FIRE Calculator - Financial Independence

Discover when you can live off investments and achieve financial freedom

Your monthly net income

Total monthly expenses

Current net worth

Expected return (% per year)

Expected annual inflation (% per year)

Annual withdrawal rule (% per year)

Lifestyle goal

Maintain current expensesSpecify desired expenses

What is FIRE?

FIRE (Financial Independence, Retire Early) is a movement that seeks financial independence through high savings rates and investments, allowing you to live off returns and retire decades before traditional retirement age.

It doesn't necessarily mean stopping work, but having the FREEDOM to choose whether to work or not. It's about having options, not idleness.

The 4% Rule

The 4% rule suggests you can withdraw 4% of your wealth annually (adjusted for inflation) with over 95% chance of the money lasting 30+ years, regardless of market crashes.

Example: With $1 million invested, you can withdraw $40,000/year ($3,333/month) indefinitely.

Origin: Based on the Trinity Study (1998) analyzing 75 years of US market data.

FIRE Variations

Lean FIRE: Independence with very low expenses (minimalist lifestyle)

Fat FIRE: Independence maintaining high standard of living (requires much larger wealth)

Coast FIRE: Enough wealth to just grow until traditional retirement (can stop contributing)

Barista FIRE: Partial wealth + part-time work to cover expenses

How to Use the Calculator

1
Enter your income and monthly expenses. Be realistic with expenses.
2
Enter how much you already have invested (current net worth).
3
Set expected return. Use REAL return (after inflation): Conservative: 5-6% real | Moderate: 6-8% real | Aggressive: 8-10% real
4
Choose your withdrawal rule. 4% is standard conservative.
5
Click Calculate and discover your FIRE number, how many years remain, and your current progress.
6
Explore scenarios: 'What if I save more?' 'What if I reduce expenses?'

Practical Examples

Example 1: Early Professional

Income: $4,000/month | Expenses: $2,800/month (savings rate: 30%) | Current net worth: $10,000 | Real return: 6% per year

Result: FIRE Number: $840,000 | Time: 23 years | Future passive income: $2,800/month

Example 2: Aggressive FIRE

Income: $10,000/month | Expenses: $4,000/month (savings rate: 60%) | Current net worth: $100,000 | Real return: 7% per year

Result: FIRE Number: $1,200,000 | Time: 11 years | Future passive income: $4,000/month

Example 3: Coast FIRE

Income: $6,000/month | Expenses: $4,500/month | Current net worth: $300,000 | Age: 30 years

Analysis: Already has 27% of FIRE number. Can stop contributing and let it grow until age 50-55.

FIRE Pillars

1. Increase Savings Rate

Each additional 10% in rate can reduce YEARS from the time needed. 50% savings = FIRE in ~17 years. 70% savings = FIRE in ~8 years.

2. Reduce Expenses Intelligently

Focus on the 'big 3': housing, transportation, food. Reducing expenses by 20% = reduce FIRE number by 20% AND increase savings.

3. Invest Consistently

Automate investments. Reinvest dividends and interest. Maintain discipline during crises.

4. Increase Your Income

Develop valuable skills. Seek promotions/job changes. Create extra income sources.

Tips to Achieve FIRE

Calculate your FIRE number: Knowing the target is the first step. Use this calculator!

Track your expenses: Use control apps. You can't optimize what you don't measure.

Avoid lifestyle inflation: When earning more, don't spend more. Invest the difference.

Optimize the 'Big 3': Housing (live farther, share, buy used), Transportation (public, economical car), Food (cook at home).

Invest in yourself: Education and skills increase income = FIRE faster.

Be patient and consistent: FIRE is a marathon, not a sprint. Stay the course.

Diversify investments: Don't put everything in one place. Mix of fixed income and stocks.

Have backup plans: Market may disappoint. Have margin of safety.

Frequently Asked Questions

Is FIRE realistic?

Yes! More difficult than in the US due to lower average income, but totally possible. Requires discipline and time.

Do I need to earn a lot for FIRE?

No! Savings rate matters more than absolute value. Someone earning $5k saving 50% gets there before someone earning $15k saving 10%.

Does the 4% rule work?

Studies are based on the US market. Consider being more conservative (3.5% or 4% with margin of safety).

How much do I need for FIRE?

Depends on your lifestyle. Use the formula: Annual expenses × 25. If you spend $3k/month, you need ~$900k.

What if the market crashes when I retire?

Sequence of returns risk. That's why the 4% rule is conservative. You can: adjust withdrawals in bad years, have 2-3 years reserve in bonds, work part-time temporarily.

Can I do FIRE with only fixed income?

Difficult. Fixed income pays ~6-8% per year. Need higher returns (stocks) for 20-30+ year horizon.

Should I include home equity in the calculation?

Not recommended. Own home reduces expenses (no rent), but doesn't generate passive income. Calculate FIRE only with income-producing assets.

What if my expenses increase in the future?

Adjust annually. Marriage, children, healthcare in old age increase expenses. Have margin of safety (FIRE Number × 1.3).

When should I start pursuing FIRE?

As soon as possible! Each additional year of investment drastically reduces the time needed due to compound interest.

Does FIRE mean never working again?

Not necessarily! Many do FIRE to have freedom to choose jobs they love, even if paying less. It's about options, not idleness.