Financial Independence
FIRE Calculator
Calculate your path to Financial Independence and Retire Early. Discover which type of FIRE fits your lifestyle.
Ready to calculate your FIRE date?
Enter your numbers and see when you can achieve financial independence.
What is FIRE?
FIRE stands for Financial Independence, Retire Early. It's a movement and lifestyle focused on extreme savings rates, frugal living, and smart investing to accumulate enough wealth to retire decades earlier than the traditional age of 65.
The core principle is simple: by saving 50-70% of your income and investing in low-cost index funds, you can build enough wealth in 10-20 years to live off investment returns for the rest of your life.
The math behind FIRE: If you can live on 4% of your portfolio annually (the "4% rule"), you need to save 25 times your annual expenses to achieve financial independence. Spend $40,000/year? You need $1,000,000 invested.
Types of FIRE
FIRE isn't one-size-fits-all. Different variations have emerged to match different lifestyles and goals:
Lean FIRE
MinimalistAchieving financial independence with a minimalist lifestyle and lower expenses, typically under $40,000/year. Requires the smallest portfolio but demands ongoing frugality.
Typical annual expenses
$25,000 - $40,000
FIRE number needed
$625,000 - $1,000,000
Best for: Minimalists, those in low cost-of-living areas, people comfortable with simple living
Traditional FIRE
BalancedThe original FIRE approach: save aggressively, invest in index funds, and retire with a comfortable middle-class lifestyle. Neither extreme frugality nor luxury.
Typical annual expenses
$40,000 - $70,000
FIRE number needed
$1,000,000 - $1,750,000
Best for: Most people seeking financial independence with a comfortable, sustainable lifestyle
Fat FIRE
LuxuryFinancial independence with a higher standard of living: travel, nice restaurants, premium experiences. Requires a larger portfolio but allows for a comfortable, unrestricted retirement.
Typical annual expenses
$100,000+
FIRE number needed
$2,500,000+
Best for: High earners who want to retire early without lifestyle sacrifices
Coast FIRE
MilestoneHaving enough invested that compound growth alone will fund a traditional retirement—even without additional contributions. You can "coast" by working a lower-stress job that just covers current expenses.
Example at age 35
$250,000 invested
Grows to by 65 (7% return)
~$1,900,000
Best for: Those who want reduced financial pressure without fully retiring
Barista FIRE
Semi-RetiredHaving enough to cover most expenses from investments, while working part-time primarily for health insurance benefits. Named after working at places like Starbucks that offer benefits for part-time work.
Investments cover
70-80% of expenses
Part-time work provides
Healthcare + extra income
Best for: Those who want more freedom but need healthcare coverage before Medicare
How to Use a FIRE Calculator
A FIRE calculator helps you project when you'll reach financial independence based on your current situation and savings rate. Here's what you need to know:
Enter Your Current Finances
Age, current savings, income, monthly expenses. Be honest—the calculator is only as accurate as your inputs.
Set Your Assumptions
Expected investment return (typically 7% real), inflation rate, and your safe withdrawal rate (usually 4%).
Calculate Your FIRE Number
Annual expenses × 25 = your target. The calculator shows when you'll reach it based on your savings rate.
Experiment with Scenarios
What if you increase savings by $500/month? What if you reduce expenses? See how changes affect your timeline.
Why Savings Rate Matters Most
Your savings rate is the single most important factor in achieving FIRE. It's more impactful than investment returns or income level because it affects both how much you're investing AND how much you need.
| Savings Rate | Years to FIRE | Notes |
|---|---|---|
| 10% | 51 years | Traditional retirement timeline |
| 25% | 32 years | Better than average |
| 50% | 17 years | Achievable FIRE timeline |
| 65% | 10.5 years | Aggressive FIRE |
| 75% | 7 years | Extreme FIRE |
Assumes 7% real returns, 4% withdrawal rate, starting from $0.
Getting Started with FIRE
Step 1: Track Your Spending
You can't improve what you don't measure. Track every dollar for 2-3 months to understand your true expenses. Use our Budget Planner to categorize spending.
Step 2: Calculate Your Number
Annual expenses × 25 = your FIRE number. Use our FIRE Calculator to see when you'll reach it at your current savings rate.
Step 3: Optimize the Big Three
Housing, transportation, and food typically account for 70%+ of spending. Focus optimization here for the biggest impact. Use our Rent vs Buy calculator.
Step 4: Maximize Tax-Advantaged Accounts
401(k), Roth IRA, HSA—use them all. Tax savings accelerate wealth building. See our glossary for details.
Step 5: Invest Consistently
Low-cost index funds, automatic contributions, dollar-cost averaging. Don't try to time the market. Read our Investing Basics guide.
Step 6: Stay the Course
Markets crash. Life happens. The key is consistency over years, not perfection. Keep investing, keep learning, and adjust your plan as needed.
FIRE Resources
Calculate Your Path to FIRE
Enter your numbers and see exactly when you can achieve financial independence.