Reviewed by David Chen, CFA | Financial Independence Expert
Are you aiming for a high-standard retirement with a six-figure annual budget? Use our Fat FIRE Calculator to determine your target net worth and how many years it will take to reach your luxury retirement goals.
Fat FIRE Calculator
Fat FIRE Calculator Formula
Years to FIRE = ln[(Target * r + Contribution) / (Current * r + Contribution)] / ln(1 + r)
Formula Sources: Investopedia (SWR), Early Retirement Now
Variables Explained:
- Annual Expenses: The total amount you plan to spend per year in retirement (typically >$100k for “Fat” FIRE).
- Safe Withdrawal Rate (SWR): The percentage of your portfolio you withdraw each year. 4% is standard, but 3-3.5% is safer for long horizons.
- Expected Annual Return: The average inflation-adjusted growth rate of your investment portfolio.
What is Fat FIRE Calculator?
The Fat FIRE Calculator is a specialized financial tool designed for individuals who seek a “Fat” version of Financial Independence, Retire Early (FIRE). Unlike traditional FIRE or Lean FIRE, which focus on minimalism, Fat FIRE accounts for a more affluent lifestyle, including travel, luxury housing, and high-quality healthcare.
This calculator determines your “FIRE Number”—the total nest egg required to sustain your desired lifestyle indefinitely based on the Safe Withdrawal Rate principle.
How to Calculate Fat FIRE (Example)
- Determine your goal annual spending (e.g., $150,000).
- Choose a safe withdrawal rate (e.g., 3.5%).
- Divide expenses by SWR: $150,000 / 0.035 = $4,285,714.
- Input your current savings and annual contributions to see how many years of compounding are required to reach that $4.28M goal.
Related Calculators
- Lean FIRE Calculator – For minimalist retirement planning.
- Coast FIRE Calculator – Calculate when you can stop saving.
- Barista FIRE Savings Tool – Planning for partial retirement.
- Compound Interest Calculator – See your wealth grow over time.
Frequently Asked Questions (FAQ)
What qualifies as “Fat FIRE”? Usually, a retirement budget exceeding $100,000 to $150,000 per year is considered Fat FIRE.
Why is SWR lower for Fat FIRE? Many high-net-worth retirees choose a 3% or 3.25% SWR to ensure their wealth lasts through market volatility and longer life expectancies.
Is the 4% rule applicable to Fat FIRE? While the Trinity Study suggests 4%, Fat FIRE practitioners often prefer more conservative rates to account for luxury taxes and higher inflation on luxury goods.
Do I need to include inflation in the calculator? The “Expected Return” should ideally be an “inflation-adjusted” or “real” return (e.g., 7% instead of 10% nominal) to keep results in today’s dollars.