FIRE Calculator

How to use the FIRE Calculator

1. 1Enter the yearly spending, the withdrawal rate, current savings, yearly saving and the real return.
2. 2Pick the units or options from the menus if the financial independence tool offers them.
3. 3Read the financial independence in the large result box.
4. 4Look at the extra rows for related figures.
5. 5Press Copy result to keep the answer.

When you need the financial independence

People use it to set a target, see the effect of saving more or spending less, and compare a lean plan with a comfortable one. A small cut in spending lowers the target and raises the savings at the same time, which shortens the time a lot.

The tool uses a real return, which means after inflation, so all the figures are in today's money. If you enter a nominal return, the target should be adjusted for inflation too.

How the financial independence is worked out

FIRE number = yearly spending ÷ withdrawal rate (4 percent means 25 times spending). Each year: savings = savings × (1 + real return) + what you add. Spending of 40,000 a year at a 4 percent rate needs 1,000,000. Starting with 100,000, adding 30,000 a year, and earning 5 percent above inflation, takes 17 years. With no new savings and no growth, the 250,000 you may have is only 25 percent of the way.

Every answer on this page comes from that one rule, so you can check any result by hand with a calculator. The figures shown underneath, such as other units, are conversions of the same answer.

• Target and years
• Progress so far
• Real returns

Mistakes to avoid with financial independence

The 4 percent rule comes from 30-year historic periods; someone retiring at 40 needs the money to last much longer, so many use 3 to 3.5 percent. The model also ignores tax, health costs and changes in spending. Treat the result as a rough plan, not a promise.

On phone and computer

On a phone, type into the boxes one after another and read the financial independence underneath; Copy result puts it on the clipboard for a message or a note. On a computer the inputs sit on the left and the answer on the right, so you can change one figure and watch the financial independence move. The fire calculator works the same on both. Plan in steps. Retirement Calculator shows the long view, Withdrawal Rate Calculator checks the spending, Compound Interest Calculator shows growth, and Savings Goal Calculator sets monthly targets.

Features

• Use today's money
• Lower rate for early retirement
• Spending drives the target
• Clear messages when the financial independence inputs make no sense
• Copy the result with one tap
• Private: nothing is uploaded

Frequently asked questions