FIRE Calculator

How FIRE targets are estimated

A common FIRE target is annual expenses divided by a safe withdrawal rate. If monthly expenses are 10,000, annual expenses are 120,000. At a 4% withdrawal rate, the target portfolio is about 3,000,000.

Key assumptions

• Current assets: assets already available for long-term planning.
• Monthly expenses: the lifestyle cost the portfolio should cover.
• Monthly investment: ongoing cash flow added to the portfolio.
• Annual return: the long-term growth assumption.
• Safe withdrawal rate: the assumed annual withdrawal percentage.

Useful scenarios

FIRE estimates are useful for financial independence planning, savings-rate comparisons, early retirement scenarios, and long-term cash-flow thinking. They show how expenses, investments, and return assumptions affect time to target.

Limitations

FIRE models usually simplify taxes, inflation, healthcare, family responsibilities, portfolio volatility, and sequence-of-return risk after retirement. A safe withdrawal rate is an assumption, not a guarantee.

Important limitation

This page and calculator are for estimation only and do not constitute investment, retirement, tax, or legal advice. Major financial decisions should include professional guidance.