M
Money Metric Hubs Precision Finance
RETIREMENT CHANNEL

FIRE Calculator

Calculate your FIRE number and map out your estimated timeline to financial independence.

Calculator Variables

$
$
$
%
%

Calculation Overview

Find your FIRE (Financial Independence, Retire Early) target number and determine how many years you are from retirement.

Mathematical Model & Formula

FIRE Number = Annual Expenses / Safe Withdrawal Rate

Divides your target retirement expenses by your safe withdrawal percentage to find the exact net worth required to sustain those outlays indefinitely.

Variables Defined:
  • FIRE Number: Required retirement fund
  • Annual Expenses: Desired yearly retirement living costs
  • Safe Withdrawal Rate: Target payout percentage (commonly 4%)

Worked Example Scenario

Scenario: Your annual living cost is $40,000, and you plan for a 4% withdrawal rate.

  1. Expenses = $40,000, SWR = 0.04
  2. FIRE Target = $40,000 / 0.04 = $1,000,000

Result: Your target portfolio size to achieve FIRE is $1,000,000.

Frequently Asked Questions

What is SWR?

Safe Withdrawal Rate (SWR) is the percentage of your total retirement nest egg you can withdraw in your first year of retirement (and adjust for inflation subsequent years) without running out of money.

Academic & Regulatory References