FIRE Calculator

    Estimate how long it will take to reach Financial Independence and Retire Early

    FIRE Calculator

    Estimate how long it will take to reach Financial Independence and Retire Early (FIRE).

    Additional Income Streams

    FIRE Projection Results

    Years to FIRE
    14
    FIRE Number
    $1,000,000.00
    Savings Rate
    50%
    Annual Savings
    $40,000.00
    Age at FIRE
    44
    These results assume you can withdraw 4% of your portfolio in the first year and adjust for inflation thereafter. "Safe" withdrawal rates are typically in the 3 %–5 % range for 30+ year retirements.
    Portfolio Growth Toward FIRE
    01234567891011121314Years$0.00$300,000.00$600,000.00$900,000.00$1,200,000.00
    • Portfolio Balance
    • FIRE Target

    What This Calculator Does

    The FIRE (Financial Independence, Retire Early) Calculator is a user-friendly, SEO-friendly tool designed to help you estimate how long it will take to achieve financial independence and retire early based on your personal financial profile. By entering your income, expenses, savings, and investment assumptions, you can quickly determine your FIRE number, years to FIRE, and the age at which you could potentially retire. This calculator offers comprehensive, actionable insights, making it an essential resource for anyone interested in reaching financial freedom faster.

    How to Use This Calculator

    1. Enter your Annual Income before taxes in the corresponding field.
    2. Input your total Annual Expenses, including all living, recurring, and discretionary costs.
    3. Provide your Current Savings—this is your existing investment and savings balance allocated toward FIRE.
    4. Set your assumed Expected Annual Return as a percentage (e.g., 6 or 7), reflecting your expected average yearly investment growth before retirement.
    5. Specify your Safe Withdrawal Rate, typically between 3% and 4%, representing the annual percentage you can safely withdraw from your portfolio after reaching FIRE.
    6. Enter your Current Age for a personalized age projection.
    7. Click the calculate button to view your results, including your FIRE Number, Years to FIRE, Annual Savings, Savings Rate, and projected Age at FIRE.
    8. Review your results to understand your path to financial independence and explore how changing different assumptions affects your timeline.

    Definitions of Key Terms

    Annual Income
    The total amount of money you earn in a year before taxes. This includes salary, bonuses, side hustles, and any other consistent income sources.
    Annual Expenses
    Your total yearly spending, covering housing, food, transportation, insurance, entertainment, and all other recurring or one-time expenses.
    Current Savings
    The current value of your investment accounts, savings, and other assets set aside specifically for retirement or reaching financial independence.
    Expected Annual Return
    The average yearly percentage gain you anticipate from your invested savings, accounting for stock market growth, bonds, or other investments.
    Safe Withdrawal Rate
    The percentage of your investment portfolio you plan to withdraw annually after reaching financial independence, intended to prevent running out of money in retirement. Commonly set at 4%, but some prefer a more conservative 3% for extra safety.
    Current Age
    Your age right now, used to estimate the age when you could potentially achieve financial independence and retire early.
    FIRE Number
    The total amount of invested assets you need to reach before you can retire early, calculated so that your portfolio can safely generate enough annual income to cover your expenses.
    Years to FIRE
    The projected number of years it will take, based on your current financial situation and assumptions, to reach your FIRE Number.
    Savings Rate
    The percentage of your annual income that you save each year, after expenses.
    Annual Savings
    The dollar amount you save each year, calculated as your annual income minus your annual expenses.
    Age at FIRE
    The estimated age at which you will achieve financial independence and could potentially choose to retire early.

    Calculation Methodology

    Annual Savings = Annual Income - Annual Expenses
    
    Savings Rate (%) = (Annual Savings / Annual Income) * 100
    
    FIRE Number = Annual Expenses / (Safe Withdrawal Rate / 100)
    
    Let:
      P = Current Savings
      PMT = Annual Savings
      r = Expected Annual Return (decimal form, e.g., 0.07 for 7%)
    
    Calculate Years to FIRE:
      For each year n,
        Future Value = P * (1 + r)^n + PMT * [((1 + r)^n - 1) / r]
        Stop when Future Value ≥ FIRE Number
    
    Years to FIRE = n (smallest n where Future Value ≥ FIRE Number)
    
    Age at FIRE = Current Age + Years to FIRE
    

    This methodology assumes you invest your annual savings at a consistent expected annual return, compounding yearly, and reinvest all earnings until you reach your FIRE Number. The safe withdrawal rate determines the required nest egg to support your annual expenses indefinitely in retirement.

    Practical Scenarios

    • Young Professional Planning for Early Retirement: Alex, age 28, earns a $65,000 annual salary, spends $35,000 per year, has $20,000 in savings, expects a 7% annual investment return, and uses a 4% withdrawal rate. The calculator helps Alex see how saving more or increasing investment returns could allow for retirement before age 50.
    • Family with Moderate Expenses: Jamie and Robin, a couple in their late 30s, bring in $120,000 combined, spend $70,000 per year, and have $100,000 saved. They use the calculator to discover how adjusting their expenses or increasing their savings rate can shorten their path to financial independence.
    • Late Starter Catching Up: Pat, age 45, has $300,000 in savings, earns $90,000 annually, spends $60,000, and is considering a 3.5% withdrawal rate for extra caution. The calculator shows how much more Pat needs to save each year to reach FIRE before age 60.
    • High Earner with Aggressive Goals: Taylor, 32, earns $200,000, spends $80,000, has $150,000 saved, and seeks to retire by 45. Taylor uses the calculator to model different investment returns and withdrawal rates to hit that ambitious target.

    Advanced Tips & Best Practices

    • Experiment with Different Withdrawal Rates: Conservative investors may prefer a 3% withdrawal rate for added safety, while others use 4%. Try both to see how they affect your required FIRE Number and timeline.
    • Factor in Inflation and Taxes: While the calculator provides quick estimates, remember to adjust your expected returns and expenses to account for inflation and potential taxes on investment gains or withdrawals.
    • Revisit Your Numbers Regularly: Life changes, raises, and market fluctuations can impact your path to FIRE. Update your inputs annually to stay on track and spot opportunities for acceleration.
    • Invest Consistently: Regularly investing your annual savings, regardless of market conditions, helps smooth out volatility and keeps your FIRE plan on course.
    • Consider Multiple Income Streams: Adding side hustles or investment income can boost your annual savings rate and help you reach financial independence faster.

    Frequently Asked Questions (Optional)

    How accurate is the FIRE Calculator?
    The calculator provides a highly informative, SEO-friendly estimate based on your inputs and reasonable assumptions. However, real-life outcomes depend on actual investment returns, inflation, unexpected expenses, and lifestyle changes. Use the results as a planning tool, not a guarantee.
    What is a safe withdrawal rate, and why does it matter?
    The safe withdrawal rate is the percentage of your retirement portfolio you can withdraw annually without depleting your funds. It is a crucial factor in determining your FIRE Number because it ensures your investments last throughout retirement, even in volatile markets.
    Can I use this calculator for partial financial independence?
    Yes, you can adjust your annual expenses to reflect different lifestyles or part-time work scenarios. By lowering your target expenses, you can see how partial financial independence or semi-retirement affects your timeline and required savings.

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    Frequently Asked Questions

    Is this calculator free to use?

    Yes, all calculators on Calculator Galaxy are completely free to use.

    How accurate are the results?

    Our calculators use standard mathematical formulas to provide accurate results.

    Can I save my calculations?

    Currently, results are not saved between sessions. We recommend taking a screenshot if you need to save your results.