🔥 FIRE Calculator

Calculate your path to Financial Independence, Retire Early

Amounts are shown in dollars ($), but the math works the same in any currency — euros, pounds, or anything else. Just enter your numbers.

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Average real return: Default is 7% (already adjusted for inflation). A diversified stock-heavy portfolio has historically returned ~10% nominal minus ~3% inflation ≈ 7% real. Adjust based on your risk tolerance and test multiple scenarios.
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Total debt amount and average interest rate
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Enter your expenses in today's money. The default 7% return already accounts for inflation, so your FIRE number stays in today's dollars — the number you can actually relate to.

Your FIRE Journey

Years Until FIRE
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Based on your current trajectory
FIRE Number
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Target portfolio for financial independence (in today's dollars)
FIRE Date
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Estimated financial independence date
Current Net Worth
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Assets minus debt
Annual Spending
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Your yearly expenses (in today's dollars)
Safe Annual Withdrawal
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4% of your FIRE portfolio
Total Contributions
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Money you'll invest

💡 Breakdown

Starting Assets (Savings + Investments) --
Starting Debt --
Monthly Investment Contribution --
Average Investment Return (Real, After Inflation) --
Monthly Expenses (Today's Dollars) --

📊 How We Calculate Your FIRE Number

1. The 4% Rule (Your FIRE Number)

Your FIRE number is calculated as 25 times your annual expenses. This is based on the "4% rule" — a widely used guideline suggesting you can withdraw 4% of your portfolio each year in retirement without running out of money.

FIRE Number = Monthly Expenses × 12 × 25

Example: If you need $4,000/month → $4,000 × 12 = $48,000/year → $48,000 × 25 = $1,200,000

2. Why Inflation Is Already Handled

The default 7% return is a real return — it already accounts for inflation. Historically, a diversified stock portfolio has returned roughly 10% per year, minus about 3% inflation, giving ~7% real growth. Because the return is inflation-adjusted, your FIRE number stays in today's dollars — the number you can actually relate to your current life.

If you want to be more conservative, simply lower the return rate (e.g., 5% or 6%) to stress-test your plan. This is more intuitive than adding a separate inflation variable.

3. Years Until FIRE

We simulate your financial journey month-by-month:

  • Starting point: Your current savings + investments − debt
  • Cash savings: Held as emergency fund (does not earn investment returns)
  • Investments: Grow with compound returns based on your specified rate
  • Each month: Your monthly investment is added to your portfolio
  • Debt strategy: If your debt interest rate is higher than your investment return, we prioritize paying off debt first. Otherwise, we invest while making minimum payments.
  • Goal check: When your net worth (cash + investments − debt) reaches your FIRE number, you've reached FIRE!

Note: If FIRE takes longer than 50 years with your current inputs, we'll show "50+" to indicate it's beyond a reasonable planning horizon. Consider increasing monthly contributions or reducing expenses.

4. Investment Growth (Compound Returns)

Your investments grow monthly based on the average return you specified. This compounds over time — meaning you earn returns on your returns. We use the proper compound interest formula to convert annual returns to monthly rates.

Monthly Return = (1 + Annual Return)1/12 − 1

Example: 7% annual return → (1.07)1/12 − 1 = 0.565% per month. On $100,000 → grows by ~$565 that month, plus your monthly contribution

5. Safe Withdrawal

Using the 4% rule, withdrawing 4% of your FIRE number annually gives you your target annual spending:

4% of FIRE Number = Annual Expenses

Example: 4% of $1,200,000 = $48,000/year = $4,000/month

Note: This calculator provides estimates based on historical averages and the 4% rule as a starting guideline. Real-world results vary based on market performance, actual inflation rates, tax situations, and life changes. The 4% rule is a planning tool, not a guarantee — consider consulting with a financial advisor for personalized planning.