Use this coastfire calculator reddit inspired tool to determine if your current retirement savings are sufficient to grow into your target nest egg without further contributions.
Coast FIRE Calculator
Coast FIRE Number
Coast FIRE Calculator Reddit Formula
The core logic behind Coast FIRE is determining the Present Value (PV) needed to achieve a Future Value (FV) purely through compound interest.
Formula Source Reference: Investopedia: Guide to Coast FIRE
Variables
- Annual Spending: How much you plan to spend per year in retirement (in today’s dollars).
- SWR (Safe Withdrawal Rate): The percentage of your portfolio you withdraw annually (typically 4%).
- r (Annual Return): The expected inflation-adjusted growth rate of your investments.
- n (Years): The time gap between your current age and retirement age.
Related Calculators
- FIRE Number Calculator
- Compound Interest Calculator
- Retirement Savings Calculator
- Lean FIRE Calculator
What is coastfire calculator reddit?
The term “Coast FIRE” (Financial Independence, Retire Early) refers to a financial milestone where you have saved enough money that, without contributing another penny, your portfolio will grow to support your retirement by a specific age.
Discussions regarding the coastfire calculator reddit often focus on the psychological freedom this milestone provides. Once you reach your Coast FIRE number, you only need to earn enough to cover your current living expenses, allowing you to switch to a lower-paying, lower-stress job (coasting) until traditional retirement age.
How to Calculate Coast FIRE (Example)
Let’s assume you are 30 years old, want to retire at 60, need $40,000/year, and expect a 7% return.
- Calculate Target FI Number: $40,000 / 0.04 = $1,000,000.
- Calculate Growth Factor: (1 + 0.07) ^ (60 – 30) = 1.07 ^ 30 ≈ 7.61.
- Calculate Coast Number: $1,000,000 / 7.61 ≈ $131,406.
If you have $131,406 invested today, you are Coast FIRE!
Frequently Asked Questions (FAQ)
Is Coast FIRE different from Lean FIRE?
Yes. Lean FIRE is retiring early on a very low budget. Coast FIRE is about stopping *contributions* early, but not necessarily retiring immediately.
What inflation rate should I use?
It is standard to use “Real Return” (Nominal Return minus Inflation). If the market returns 10% and inflation is 3%, use 7%.
Does this include Social Security?
This calculator focuses on portfolio growth. You can adjust your “Annual Spending” requirement down if you expect significant Social Security income.
Why is the reddit keyword popular?
The r/financialindependence and r/coastfire subreddits are major hubs for discussing these strategies, often refining the math used in these calculators.