Fire Number Calculator

FIRE Number Calculator

The "4% Rule" is a common industry standard.

Your FIRE Statistics

Target FIRE Number:

Remaining Gap:

Progress:

function calculateFIRE() { var annualExpenses = parseFloat(document.getElementById('annualExpenses').value); var withdrawalRate = parseFloat(document.getElementById('withdrawalRate').value); var currentInvestments = parseFloat(document.getElementById('currentInvestments').value) || 0; if (isNaN(annualExpenses) || isNaN(withdrawalRate) || annualExpenses <= 0 || withdrawalRate <= 0) { alert("Please enter valid positive numbers for expenses and withdrawal rate."); return; } // Calculation: FIRE Number = Annual Expenses / (Withdrawal Rate / 100) var fireNumber = annualExpenses / (withdrawalRate / 100); var gap = fireNumber – currentInvestments; var progress = (currentInvestments / fireNumber) * 100; if (gap 100) progress = 100; document.getElementById('fireNumberDisplay').innerText = "$" + fireNumber.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('fireGapDisplay').innerText = "$" + gap.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('fireProgressDisplay').innerText = progress.toFixed(2) + "%"; document.getElementById('progressBar').style.width = progress + "%"; document.getElementById('fireResults').style.display = 'block'; }

The FIRE Number (Financial Independence, Retire Early) is the specific dollar amount you need in invested assets to sustain your lifestyle indefinitely without ever needing to earn another paycheck. It is the cornerstone of the FIRE movement, providing a clear mathematical target for those looking to exit the traditional 9-to-5 workforce.

How the FIRE Number is Calculated

The calculation is primarily based on the Rule of 25 and the 4% Safe Withdrawal Rate (SWR). These concepts originated from the Trinity Study, which analyzed historical market performance to determine how much a retiree could withdraw from their portfolio annually without running out of money over a 30-year period.

• Standard Formula: FIRE Number = Annual Expenses × 25
• Alternative Formula: FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate (as a decimal)

Key Components of the FIRE Calculation

1. Annual Expenses

This is the most critical variable. To find your FIRE number, you must have a deep understanding of your annual spending. This includes housing, food, healthcare, taxes, and leisure. Remember that in retirement, some costs might decrease (like commuting) while others might increase (like travel or health insurance).

2. Safe Withdrawal Rate (SWR)

While 4% is the industry standard, many "Early Retirees" opt for a more conservative rate of 3% or 3.5% to account for a longer retirement horizon (50+ years instead of 30) and potential market volatility.

Realistic Example

Imagine a household that spends $60,000 per year. Using the standard 4% rule, their calculation would look like this:

$60,000 (Expenses) ÷ 0.04 (SWR) = $1,500,000

In this scenario, once the household reaches $1.5 million in invested assets (stocks, bonds, real estate), they have technically achieved financial independence.

LeanFIRE vs. FatFIRE

Depending on your lifestyle goals, your number might shift:

• LeanFIRE: Targeting a minimalist lifestyle with annual expenses under $40,000.
• FatFIRE: Targeting a luxurious lifestyle with annual expenses over $100,000.
• BaristaFIRE: Reaching a partial FIRE number where you only need a low-stress part-time job to cover basic gaps.

By using the calculator above, you can experiment with different withdrawal rates and spending levels to see how they impact your timeline to freedom.