FIRE Calculator
Estimate how long it could take to reach financial independence based on your income, spending, savings and expected investment return.
Overview
A FIRE Calculator helps you estimate how much you may need to retire early and how long it could take to get there. Enter your current portfolio, annual income, annual expenses, yearly contributions and expected return to see a simple financial independence projection.
How it works
This calculator estimates your FIRE target by dividing your annual expenses by your withdrawal rate. It then compares that target with your current portfolio and uses your expected annual return and yearly contributions to estimate how long it may take to close the gap. Your savings rate is shown as the share of your after-tax income that is not spent.
How to use this calculator
- 1Enter your current portfolio value.
- 2Add your annual after-tax income.
- 3Enter your annual living expenses.
- 4Input how much you expect to invest each year.
- 5Set your expected annual return and withdrawal rate.
- 6Review your FIRE number, savings rate and estimated years to FIRE.
Example Calculation
Current portfolio value
$50,000
Annual after-tax income
$80,000
Annual living expenses
$40,000
Annual investment contribution
$40,000
Expected annual return
7%
Safe withdrawal rate
4%
Estimated FIRE number
$1,000,000
With $40,000 in annual expenses and a 4% withdrawal rate, the estimated FIRE number is about $1,000,000. Starting from $50,000 and investing $40,000 per year at 7%, the timeline to FIRE is roughly 14.3 years.
Frequently asked questions
What does this FIRE Calculator estimate?
It estimates your FIRE target portfolio, savings rate, remaining gap and the approximate years needed to reach financial independence.
How is the FIRE number calculated?
The calculator divides your annual expenses by your chosen withdrawal rate. For example, a 4% withdrawal rate implies a target of about 25 times annual expenses.
Should I use gross or after-tax income?
For a simple personal estimate, after-tax income is usually easier because it better reflects the money available for spending and investing.
What withdrawal rate should I choose?
Many people start with 4% as a rough benchmark, but the right rate depends on your timeline, flexibility, market conditions and personal risk tolerance.
Does this calculator account for inflation?
Not separately. You can partly reflect inflation by using a more conservative return assumption or by entering expenses in today’s money consistently.
Why is my savings rate different from my annual contribution rate?
Savings rate is based on income minus expenses. Your annual contribution may differ if you plan to invest more or less than that amount.
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Assumptions and warnings
Assumptions
- Results are estimates based on steady annual contributions and a constant average annual return.
- The FIRE target is calculated as annual expenses divided by the selected withdrawal rate.
- Income, expenses and contributions are assumed to stay broadly consistent over time unless you update the inputs.
- Taxes, fees, inflation, market volatility and changes in spending are not modeled separately unless already reflected in your inputs.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Investment returns are not guaranteed and actual results may vary significantly.
- Speak to a qualified professional before making major financial decisions.