Early Retirement Calculator (FIRE)

The FIRE Movement: Achieving Financial Independence and Retiring Early

What is the FIRE Movement?

FIRE (Financial Independence, Retire Early) is a lifestyle movement focused on extreme savings and investment to achieve financial independence much earlier than traditional retirement ages. Followers aim to save 50-70% of their income, build investment portfolios 25-30 times their annual expenses, and gain the freedom to work by choice, not necessity.

The Math Behind FIRE:

Savings Rate 50%: FI in 17 years
Savings Rate 60%: FI in 12.5 years
Savings Rate 70%: FI in 8.5 years

Every percentage increase in savings rate dramatically reduces time to financial independence.

FIRE Strategies & Approaches

💼 LeanFIRE

Minimalist approach with annual expenses under $40,000. Requires smaller portfolio ($600k-$1M) but strict budgeting and lifestyle optimization.

🏡 RegularFIRE

Standard approach maintaining current lifestyle. Portfolio of $1-2.5M supporting $40k-$100k annual spending. Most common FIRE path.

🚀 FatFIRE

High-income earners targeting $100k+ annual spending. Requires $2.5M+ portfolio but offers luxury and flexibility in retirement.

⚡ BaristaFIRE

Partial retirement where you cover some expenses with part-time work. Reduces portfolio requirements while maintaining benefits and purpose.

The 4% Rule & Safe Withdrawal Rates

The 4% rule, based on the Trinity Study, suggests you can withdraw 4% of your portfolio in the first year of retirement, adjusted for inflation annually, with a 95% success rate over 30 years. For early retirement (40+ years), many experts recommend 3-3.5% for added safety.

Withdrawal Rate

Portfolio Multiple

Success Rate (30 yrs)

3.0%

33x expenses

99%+

3.5%

29x expenses

95%

4.0%

25x expenses

95%

4.5%

22x expenses

85%

Key Principles for FIRE Success

Maximize Savings Rate: The most powerful lever. Every 10% increase cuts years off your timeline
Reduce Expenses Strategically: Focus on "Big 3" expenses: housing, transportation, food
Invest in Tax-Advantaged Accounts: Maximize 401(k), IRA, HSA, and Roth conversions
Diversify Income Streams: Side hustles, rental income, dividend growth
Maintain Flexibility: Be willing to adjust spending or earn supplemental income if needed

Expert Advice from FIRE Achievers

"The path to FIRE isn't about deprivation—it's about intentionality. Every dollar you don't spend today is buying you freedom tomorrow. Focus on increasing the gap between your earnings and spending, and invest the difference consistently."
— Early retiree at 42, 8 years into FIRE journey

FIRE Movement FAQs

How much do I really need to retire early?

Your "FIRE number" is typically 25 times your annual expenses (based on the 4% rule). If you spend $40,000 annually, aim for $1,000,000 invested. For more conservative early retirement (40+ years), use 30x expenses (3.33% withdrawal rate).

What's the most important factor for reaching FIRE quickly?

Savings rate is the most critical factor. A 50% savings rate leads to financial independence in about 17 years, while 75% reduces it to just 7 years. Increasing income while maintaining or reducing expenses accelerates the timeline dramatically.

How do healthcare costs work in early retirement?

Healthcare is a significant consideration. Options include ACA marketplace plans (with subsidies based on income), health sharing ministries, part-time work with benefits, or geographic arbitrage (moving to countries with lower healthcare costs). Budget $500-$1,500 per month per person.

Can I still retire early if I start late?

Yes! While starting early is ideal, you can still achieve FIRE starting in your 40s or 50s by maximizing savings rate (aim for 50%+), increasing income, controlling expenses, and potentially considering geographic arbitrage or BaristaFIRE options.

Start Your Journey to Financial Freedom

Use this calculator to create your personalized FIRE plan. Adjust your savings rate, spending, and timeline to find your optimal path to early retirement.

Disclaimer: This calculator provides estimates based on historical market returns. Past performance does not guarantee future results. The 4% rule may not be appropriate for all situations, especially extended retirement periods. Consider sequence of returns risk, inflation, healthcare costs, and other variables. Consult with a financial advisor for personalized advice.

Your FIRE Plan

Your FIRE Results