FIRE Number Calculator

Find the portfolio you need for financial independence.

Annual expenses

Withdrawal rate(optional)

Default 4%

Results update as you type.

FIRE number

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How it works

The FIRE movement, standing for Financial Independence, Retire Early, centers on saving enough that investment withdrawals cover your living expenses, and this calculator finds the target portfolio, your FIRE number. You enter your annual expenses and a safe withdrawal rate, defaulting to 4 percent, and it returns the portfolio size you need. The calculation divides your annual spending by the withdrawal rate, which at 4 percent equals 25 times your yearly expenses. This is the amount from which, based on historical market returns, withdrawing that percentage each year and adjusting for inflation should sustain your spending for a long retirement without depleting the principal. So if you spend $40,000 a year, your FIRE number at 4 percent is $1,000,000. The FIRE number is powerful because it turns the abstract goal of financial independence into a concrete savings target, and it highlights that your required nest egg depends directly on your spending, so reducing expenses lowers the target dramatically. A more conservative withdrawal rate, such as 3.5 percent, raises the number but adds safety for very long retirements or uncertain markets. Use it to set a savings goal, track progress toward independence, and see how spending changes affect the finish line. It is a planning estimate, not a guarantee, since real returns and longevity vary. Enter your annual expenses and withdrawal rate to compute your FIRE number.

Formula

FIRE number = annual expenses / withdrawal rate

Your FIRE number is your annual expenses divided by your safe withdrawal rate. At the common 4 percent rate, this equals 25 times your annual expenses, the portfolio size from which withdrawing 4 percent a year should cover your spending indefinitely, based on historical returns.

Source:Financial independence planning

We review all our tools from time to time to ensure accuracy.

Worked example

Annual expenses:40000Withdrawal rate:4

$40,000 / 4% = $1,000,000, which is 25× annual expenses.

How to use this calculator

1
Enter your values
Enter annual expenses.
2
Adjust the options
Adjust withdrawal rate if they apply — sensible defaults are already set.
3
Read your result
FIRE number updates instantly as you type — no button to press.

Frequently asked questions

What is a FIRE number?

A FIRE number is the portfolio size you need so that safe withdrawals cover your living expenses, achieving financial independence. It equals your annual expenses divided by your withdrawal rate. At the common 4 percent rate, it is 25 times your yearly spending, the target for retiring on investment income.

How do you calculate your FIRE number?

Divide your annual expenses by your safe withdrawal rate. At 4 percent, that is annual expenses times 25. If you spend $40,000 a year, your FIRE number is $1,000,000. The calculator computes this from your expenses and chosen rate, giving the portfolio you would need to become financially independent.

Why is the FIRE number based on expenses, not income?

Financial independence means your investments cover what you spend, so your FIRE number depends on your expenses, not your income. This is empowering: cutting your annual spending directly and proportionally lowers the portfolio you need. Someone who spends less needs a far smaller nest egg to reach independence than a high spender.

What withdrawal rate should I use?

The 4 percent rate is the traditional benchmark, based on research suggesting it sustains a 30-year retirement. For longer time horizons, early retirement, or extra caution, many use a lower rate like 3 to 3.5 percent, which raises the FIRE number but improves safety. A higher rate lowers the target but increases the risk of running out.

Is reaching my FIRE number a guarantee?

No. The FIRE number is a planning target based on historical returns and a fixed withdrawal rate. Real market returns, inflation, unexpected expenses, and how long you live all affect whether your money lasts. Building a margin of safety, staying flexible with spending, and revisiting the plan improve your odds of a secure early retirement.