How to use the FIRE calculator
- 1 Enter your expected yearly spending in retirement.
- 2 Choose a safe withdrawal rate, often 3.5% to 4%.
- 3 Enter what you have invested now and how much you invest each year.
- 4 Enter an expected real return after inflation and read your timeline.
Worked example
Spending $60,000 a year with a 4% withdrawal rate, $150,000 invested and $30,000 invested each year at a 5% real return. The FIRE number is $1.5 million, and you are 10% of the way there. At this pace you would reach it in about 22 years.
Getting at your money before 59½
Retiring early means living off savings years before penalty-free withdrawals from most retirement accounts. The main routes:
- Taxable brokerage accounts have no age limits.
- Roth IRA contributions, not earnings, can be withdrawn at any time.
- Rule of 55: if you leave your job in or after the year you turn 55, you can take money from that employer's 401(k) without the 10% penalty.
- 72(t) payments: substantially equal periodic payments from an IRA avoid the penalty if kept up for at least five years or until 59½.
Plan health insurance until Medicare at 65. Model the pieces with the 401(k) Calculator and Roth IRA Calculator, and the full picture with the Retirement Calculator.
Features
FIRE number
Yearly spending divided by your withdrawal rate.
Years to freedom
How long savings and growth take to reach the target.
Lean and fat FIRE
Targets for a frugal and a comfortable lifestyle.
When to use it
Early retirement
Plan the year you can stop working. Model a standard plan with the Retirement Calculator.
Savings rate
See how saving more cuts years off. Use contributions early with the Roth IRA Calculator.
Coast FIRE
Check whether you can slow down saving. Max out savings with the 401(k) Calculator.
Spending cuts
See how lower spending shrinks the target. Track progress with the Net Worth Calculator.
Related Savings and Investing tasks
Frequently asked questions
What is FIRE?
Financial Independence, Retire Early: saving and investing aggressively so investments can cover living costs years before the usual retirement age.
How is the FIRE number calculated?
Divide yearly spending by your safe withdrawal rate. At 4%, that is 25 times spending.
Is 4% safe for early retirement?
The 4% rule came from 30-year retirements. Many early retirees use 3.25% to 3.5% for 40 to 50 years.
Why use a real return?
A real return, after inflation, keeps everything in today's dollars, so the FIRE number stays meaningful.
What about health insurance?
Before Medicare at 65, early retirees need ACA marketplace or other coverage, which should be in your spending.
How do I access retirement accounts early?
Options include a Roth conversion ladder, Rule 72(t) payments and the rule of 55 for 401(k)s.
What is lean FIRE and fat FIRE?
Lean FIRE means retiring on a tight budget, and fat FIRE means a larger budget with more cushion.
What is Coast FIRE?
Having enough invested that growth alone will reach your FIRE number by a normal retirement age, so you only need to cover current spending.
What savings rate do I need?
Saving 50% of take-home pay can mean financial independence in about 17 years, while 25% takes about 32 years, depending on returns.
What about taxes in early retirement?
Withdrawals from traditional accounts are taxed, so spending figures should include taxes, while Roth and taxable account withdrawals may be taxed less.
Should I include Social Security?
Many people leave it out for safety, then treat it as a bonus later in retirement.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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