Financial Freedom
Early Retirement Calculator
Calculate exactly how much you need to retire early and create your path to financial independence.
Ready to calculate your early retirement date?
Our free calculator shows when you can achieve financial independence.
What is Early Retirement?
Early retirement means having enough money saved and invested that you no longer need to work for income. It doesn't necessarily mean you stop working entirely—many early retirees pursue passion projects, part-time work, or entrepreneurship. The key difference is choice: you work because you want to, not because you have to.
Traditional retirement age is 65-67, but the FIRE (Financial Independence, Retire Early) movement has shown that with intentional saving and investing, many people can achieve financial independence in their 30s, 40s, or 50s.
Key insight: Early retirement is less about age and more about having 25-30 times your annual expenses invested. Once you hit that number, your investments can sustain your lifestyle indefinitely.
How to Calculate Your Early Retirement Number
Your "FIRE number" or early retirement target is based on a simple formula derived from decades of research:
Early Retirement Number = Annual Expenses × 25
This formula comes from the "4% rule"—research showing that you can safely withdraw 4% of your portfolio each year with a very high probability of never running out of money over a 30+ year retirement.
| Annual Expenses | FIRE Number (×25) | Monthly Safe Withdrawal |
|---|---|---|
| $30,000 | $750,000 | $2,500 |
| $40,000 | $1,000,000 | $3,333 |
| $60,000 | $1,500,000 | $5,000 |
| $80,000 | $2,000,000 | $6,667 |
| $100,000 | $2,500,000 | $8,333 |
Note: These are baseline calculations. Our Advanced FIRE Calculator accounts for taxes, inflation, and sequence of returns risk for more accurate projections.
7 Steps to Retire Early
Calculate Your FIRE Number
Track your expenses for 3-6 months to understand your true spending. Multiply by 25 to get your target. Use our FIRE calculator for a detailed projection.
Maximize Your Savings Rate
The higher your savings rate, the faster you reach FIRE. At 50% savings rate, you can retire in ~17 years. At 70%, it drops to ~8.5 years. Focus on the big three expenses: housing, transportation, and food.
Eliminate High-Interest Debt
Credit card debt at 20%+ interest destroys wealth faster than investments can build it. Use our debt payoff calculator to create a plan.
Max Out Tax-Advantaged Accounts
Prioritize: 401(k) match → Roth IRA → HSA → remaining 401(k). These accounts provide significant tax advantages that accelerate wealth building. See our glossary for details.
Invest in Low-Cost Index Funds
Keep it simple: total stock market index funds (like VTI or FXAIX) with expense ratios under 0.1%. Historically returns ~7% after inflation. Avoid stock picking and market timing.
Increase Your Income
While cutting expenses helps, increasing income has unlimited upside. Negotiate raises, develop new skills, consider side hustles. Every extra dollar earned and invested accelerates your timeline.
Stay the Course
Markets will crash. You'll be tempted to sell or stop investing. Don't. Keep investing through downturns—that's when you're buying stocks "on sale." Time in the market beats timing the market.
Early Retirement Examples
The Software Engineer
Retired at 35
- Income: $150,000/year
- Savings rate: 65%
- Annual expenses: $52,500
- FIRE number: $1,312,500
- Strategy: Maxed 401(k), lived on half income, invested in index funds
The Teacher Couple
Retired at 45
- Combined income: $110,000/year
- Savings rate: 45%
- Annual expenses: $60,500
- FIRE number: $1,512,500
- Strategy: House hacking, pension + 403(b), low-cost lifestyle
The Late Starter
Retired at 52
- Income: $200,000/year (started saving at 40)
- Savings rate: 55%
- Annual expenses: $90,000
- FIRE number: $2,250,000
- Strategy: Aggressive catch-up contributions, downsized home
The Lean FIRE Artist
Retired at 38
- Income: $55,000/year
- Savings rate: 50%
- Annual expenses: $27,500
- FIRE number: $687,500
- Strategy: Minimalist lifestyle, geographic arbitrage, Roth conversion ladder
These examples show that early retirement is achievable across different income levels. The common thread is a high savings rate and consistent investing over time.
Common Early Retirement Questions
How do I access retirement accounts before 59½?
What about healthcare before Medicare?
Is the 4% rule still valid?
What if the market crashes right after I retire?
Calculate Your Early Retirement Date
Enter your numbers and see exactly when you can achieve financial independence.