FIRE Calculator - 4% Rule & Years to Financial Independence
Calculate four percent rule with our free Four percent rule Calculator. Compare rates, see projections, and make informed financial decisions.
Formula
FIRE Number = Annual Expenses / Safe Withdrawal Rate
The 4% rule states that withdrawing 4% of your portfolio in year 1, then adjusting for inflation each year, has historically sustained portfolios for 30+ years (Trinity Study, 1998). This calculator shows your required portfolio = Annual Expenses / 0.04, projected depletion timeline at different withdrawal rates, and how changing the rate to 3% or 5% affects longevity.
Worked Examples
Example 1: Standard FIRE — $50k Expenses
Problem: $50,000 annual expenses, $100,000 saved, saving $30,000/year, 7% returns, 4% withdrawal rate.
Solution: FIRE Number: $50,000 / 0.04 = $1,250,000\nProgress: $100,000 / $1,250,000 = 8%\nSavings rate: $30,000 / $80,000 = 37.5%\nYears to FIRE: ~18 years (with compound growth)
Result: FIRE Number: $1,250,000 | ~18 years to FIRE | Savings rate: 37.5%
Frequently Asked Questions
What is FIRE (Financial Independence, Retire Early)?
FIRE is a movement focused on extreme savings and investment to achieve financial independence much earlier than traditional retirement age. The core idea: save 50-70%+ of your income, invest aggressively, and retire when your investment portfolio can sustain your living expenses indefinitely. FIRE number = Annual Expenses / Safe Withdrawal Rate (typically 4%). With $50,000 annual expenses and 4% withdrawal rate, your FIRE number is $1,250,000.
What is the 4% rule?
The 4% rule (Trinity Study) states you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation annually, with a high probability (95%+) of not running out of money over 30 years. It assumes a 50/50 to 75/25 stock/bond allocation. Some FIRE advocates use 3.5% for extra safety (especially for 40-50 year retirements) or 5% for more aggressive spending. Your withdrawal rate is the inverse of your 'multiply by X' factor (4% = 25x expenses, 3% = 33x).
What are Lean FIRE, Fat FIRE, and Coast FIRE?
Lean FIRE: Retire with minimal expenses ($20-40k/year), often involving frugal living, geographic arbitrage, or van life. Fat FIRE: Retire with comfortable or luxury expenses ($100k+/year), requiring a much larger portfolio. Coast FIRE: Have enough invested that compound growth alone will reach your FIRE number by traditional retirement age — you still work but only to cover current expenses, not to save more. Barista FIRE: Semi-retired with part-time work for healthcare and spending money.
What is the Rule of 72?
The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by your annual interest rate to get the approximate number of years. At 8% annual returns, your investment doubles in about 9 years.
What is the 4% rule for retirement withdrawals?
The 4% rule suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year. Based on historical data, this approach has a high probability of making your portfolio last at least 30 years.
Is my data stored or sent to a server?
No. All calculations run entirely in your browser using JavaScript. No data you enter is ever transmitted to any server or stored anywhere. Your inputs remain completely private.