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Financial independence (FIRE) calculator
How much wealth you need for your investments to cover your expenses, and how many years it will take to get there with what you save each month.
What FIRE is
FIRE (Financial Independence, Retire Early) is the idea of saving and investing enough for your investments to cover your expenses, so that working becomes optional. The key math is simple: the more of your income you save, the sooner you get there; and the less you spend, the less you need.
Frequently asked questions
What is the 4% rule?
A rule of thumb: if you withdraw 4% of your invested wealth each year (adjusted for inflation), it is very likely to last 30 years or more. That is why the target is 25 times your annual expenses.
What return should I use?
The real one, after inflation. A diversified stock portfolio has historically returned 4-7% a year in real terms on average, with very bad years along the way. Past returns do not guarantee future results.
Are taxes included?
No. When you sell to live off your wealth you will pay tax on the gains; to be on the safe side, use a lower withdrawal rate (3 or 3.5%).
Illustrative simulation with general information: not investment or tax advice.