What is FIRE?
FIRE stands for Financial Independence, Retire Early. The goal is to save and invest aggressively enough that your portfolio generates enough passive income to cover your living expenses — forever. At that point, work becomes optional.
The 4% rule and your FIRE number
The cornerstone of FIRE planning is the 4% safe withdrawal rate, derived from the Trinity Study. It says a portfolio diversified between stocks and bonds can sustain a 4% annual withdrawal for at least 30 years across most historical market scenarios. Your FIRE number is simply your annual spending divided by your withdrawal rate: if you spend $50,000/year, you need $1,250,000.
FIRE variants
- Lean FIRE — retire early on a very frugal budget (typically under $40k/year).
- Fat FIRE — retire early with a comfortable or luxurious lifestyle ($80k+ /year).
- Barista FIRE — semi-retire; cover most expenses from investments but keep a part-time job for healthcare or extras.
- Coast FIRE — save enough that you can stop contributing and let compounding do the rest.
The biggest lever: savings rate
Nothing matters more than what percentage of your income you save. At a 10% savings rate, retirement is ~40 years away. At 50%, it's ~17 years. At 70%, about 8–9 years. Cutting spending matters more than chasing higher returns.
Frequently asked questions
Is the 4% rule still valid in 2026?
It's debated. Some planners suggest 3–3.5% for longer retirements (40+ years). The calculator lets you adjust the withdrawal rate — try 3.5% for a more conservative estimate.
Does this account for Social Security?
No. If you plan to receive Social Security, your actual spending need from the portfolio is lower. Subtract your expected SS benefit from annual spending for a more accurate FIRE number.
Is my data saved?
No. Everything runs locally in your browser. Nothing is stored or transmitted.
For educational and estimation purposes only; not financial advice. Returns are uncertain and past performance does not guarantee future results. Consult a qualified financial professional.