FIRE Number Calculator: Formula and Examples
Calculate a financial-independence portfolio target from spending and an assumed withdrawal rate.
How the calculation works
FIRE means financial independence, retire early. The withdrawal rate is an assumption, not a guarantee. Market returns, inflation, taxes, retirement length, and other income all affect a real plan.
FIRE Number formula
FIRE target = annual spending ÷ withdrawal rate as a decimal.
Worked example
$36,000 of annual spending divided by 4% gives a $900,000 portfolio target, or 25 times annual spending.
Inputs, assumptions, and interpretation
Amounts and rates apply only to the defined scenario. For projections, returns remain constant and timing follows the selected input. Taxes, market variability, and unentered costs are excluded.
Displayed values are rounded, while calculations use unrounded numbers. The charts show modeled values rather than historical performance. For background, see Investor.gov introduction to investment returns.
Frequently asked questions
Are the default rates guaranteed?
No. Default inputs illustrate how the calculation works. Enter rates and contribution amounts relevant to your scenario, and review the applicable account or scheme terms.
Why might an actual statement differ?
Actual payment dates, compounding conventions, changing returns, fees, tax treatment, and account rules can differ from a simplified projection.
How should I interpret a negative result?
Some comparisons or value changes can be negative, including investment losses or a gap between alternative scenarios. Read the result labels to distinguish a balance from a change in value.