FIRE Calculator

Q: What is the difference between Fixed Return, Historical Cycles, and Monte Carlo?

Fixed Return uses the same growth rate every year. It is simple and easy to understand. Historical Cycles runs your plan through real past market data to show how it would have performed. Monte Carlo runs 1,000 random simulations based on your asset allocation to show a range of possible outcomes and a success rate.

FIRE Calculator

Updated Jun 22, 2026 By Jehan Wadia

Introduction

FIRE stands for Financial Independence, Retire Early. It means saving enough money so you no longer need to work for a paycheck. This FIRE calculator helps you figure out how long it will take to reach that goal based on your income, savings, and spending.

Enter your numbers and the calculator does the math for you. It shows your FIRE number — the total amount you need saved to retire — and tells you how many years it will take to get there. You can also see charts, milestones, and a full year-by-year breakdown of your progress.

Choose from five FIRE types: Traditional FIRE for full retirement, Lean FIRE for a simple lifestyle, Fat FIRE for a bigger budget, Coast FIRE to stop saving and let your money grow on its own, or Barista FIRE to work part-time and cover some bills while your portfolio does the rest. Each option adjusts your target number so you can compare paths and pick the one that fits your life.

Advanced options let you change your expected investment return, withdrawal rate, tax rate, and asset allocation. You can add extra income or expense streams, run Monte Carlo simulations, and test how small changes to your savings rate affect your timeline. Whether you are just learning about FIRE or deep into planning, this calculator gives you clear answers in seconds.

How to Use Our FIRE Calculator

Enter your income, savings, and investment details below. The calculator will tell you how many years it will take to reach financial independence and retire early (FIRE), your FIRE number, and a full year-by-year projection of your portfolio growth.

Choose Your FIRE Variant: Pick the type of FIRE plan you want to follow. Traditional FIRE means full retirement. Lean FIRE uses a smaller budget. Fat FIRE plans for a bigger lifestyle. Coast FIRE shows when you can stop saving and let your money grow on its own. Barista FIRE means you work part-time to cover some costs.

Annual Income (take-home): Enter how much money you bring home each year after taxes. Use our take home pay calculator if you need to convert your gross salary.

Annual Savings: Enter how much money you save and invest each year. This field auto-syncs with your income, expenses, and savings rate.

Annual Expenses: Enter how much you spend each year. When you change this, your savings amount updates to match. If you need help tracking your spending, try our budget calculator.

Savings Rate (%): This is the percent of your income that you save. Change any of the four fields above and the others will update on their own.

Current Age: Enter your age today. The calculator uses this to figure out what age you can retire.

Current Portfolio: Enter the total value of all your investments and savings right now. You can use our net worth calculator to get a complete picture of where you stand.

Part-Time Income (Barista FIRE only): If you choose Barista FIRE, enter how much you plan to earn from part-time work each year. This lowers the portfolio you need.

Target Retirement Age (Coast FIRE only): If you choose Coast FIRE, enter the age when you want to fully retire. The calculator will find how much you need today so your money can grow to your FIRE number by that age with no new contributions. For a deeper dive into this strategy, use our dedicated Coast FIRE calculator.

Expected Annual ROI (real %): Found under Advanced Options. This is the yearly return you expect on your investments after inflation. The default is 7%, which reflects the long-term stock market average. Use our inflation calculator to understand how inflation affects your purchasing power over time.

Withdrawal Rate (%): The percent of your portfolio you plan to withdraw each year in retirement. The standard rule of thumb is 4%.

Income Growth Rate (real %): How much your income will grow each year after inflation. This increases your savings over time.

Retirement Spending (today's $): How much you plan to spend per year once you retire, in today's dollars. If left at the default, the calculator uses your current annual expenses.

Retirement Tax Rate (%): The tax rate you expect to pay on withdrawals in retirement. The calculator adds this to your FIRE number so your withdrawals cover both spending and taxes. Use our tax bracket calculator to estimate what rate you might fall into.

Asset Allocation: Set what percent of your portfolio is in stocks, bonds, and cash. These three numbers must add up to 100%. You can also set the expected real return for each asset class. For bond-specific analysis, check out our bond yield calculator.

Return Model: Choose how the calculator projects your investment returns. Fixed Return uses one steady rate each year. Historical Cycles runs your plan through past market data. Monte Carlo runs 1,000 random simulations to show a range of possible outcomes.

Display Dollars As: Pick Real to see all numbers in today's dollars. Pick Nominal to see future dollars that include inflation. If you choose Nominal, enter your expected inflation rate.

Extra Income or Expense Streams: Add up to 8 extra cash flows like a mortgage payment, rental income, or Social Security. Enter a positive number for income and a negative number for an expense. Set the start and end ages, or check the one-time box for a single event.

Press the Calculate button to see your results. Press Reset to return all fields to their default values.

What Is FIRE?

FIRE stands for Financial Independence, Retire Early. It is a plan to save and invest enough money so you can stop working much sooner than the usual retirement age. The basic idea is simple: spend less, save more, and invest the difference. Once your investments grow large enough to cover your living costs, you no longer need a paycheck. For a broader look at retirement readiness beyond the FIRE framework, our retirement calculator can help.

How Does FIRE Work?

FIRE is built on one key rule called the 4% rule. This rule says that if you withdraw 4% of your invested money each year, your savings should last 30 years or more. To find your FIRE number — the total amount you need to retire — you multiply your yearly spending by 25. For example, if you spend $40,000 a year, your FIRE number is $1,000,000. You can use the Rule of 72 calculator to quickly estimate how long it takes your investments to double at a given return rate.

Types of FIRE

Traditional FIRE means you save enough to fully replace your income and stop all work. Lean FIRE is for people who plan to live on a tight budget in retirement, so they need less money. Fat FIRE is the opposite — it targets a comfortable or luxury lifestyle, which means a bigger nest egg. Coast FIRE means you invest enough early on, then let compound growth do the rest with no new contributions. Barista FIRE is when you semi-retire and work a part-time job to cover some expenses, so your portfolio does not need to be as large.

Why Your Savings Rate Matters Most

Your savings rate is the single biggest factor in how fast you reach FIRE. It is the percentage of your income that you save and invest. A person who saves 10% of their income may need 40 or more years to retire. Someone who saves 50% could reach FIRE in about 15 years. Even a small increase in your savings rate can cut years off your timeline. If you are not sure where your money goes each month, start with a budget calculator to identify areas where you can save more.

The Power of Compound Growth

When you invest money, it earns returns. Those returns then earn their own returns. This is called compound growth, and it is what makes early retirement possible. The earlier you start investing, the more time your money has to multiply. This is why starting young — even with small amounts — gives you a huge advantage. Our compound interest calculator lets you see exactly how your money grows over time. Strategies like dollar-cost averaging can help you build wealth steadily through regular contributions to your investment portfolio.

Key Terms to Know

FIRE Number — The total portfolio value you need to retire.
Withdrawal Rate — The percentage of your portfolio you take out each year in retirement.
Real Return — Your investment growth after subtracting inflation, shown in today's dollars. Use our inflation calculator to see the difference.
Nominal Return — Your investment growth before adjusting for inflation, shown in future dollars.
Asset Allocation — How you split your money between stocks, bonds, and cash.

Formulas used

Savings Rate

\text{Savings Rate} = \frac{\text{Annual Savings}}{\text{Annual Income}} \times 100

FIRE Target (Fire Number)

\text{FIRE Target} = \frac{\text{Annual Spending}}{\text{Withdrawal Rate}} \times \frac{1}{1 - \text{Tax Rate}}

Coast FIRE Number

\text{Coast Number} = \frac{\text{FIRE Target}}{(1 + r)^{n}}

Year-by-Year Portfolio Growth

P_{t+1} = P_{t} \times (1 + r) + S_{t} + \text{Streams}_{t}

Weighted Portfolio Return (Asset Allocation)

r = w_s \cdot r_s + w_b \cdot r_b + w_c \cdot r_c

Monte Carlo Portfolio Volatility

\sigma = \sqrt{w_s^{2}\,\sigma_s^{2} + w_b^{2}\,\sigma_b^{2} + w_c^{2}\,\sigma_c^{2}}

Current Progress Toward FIRE

\text{Progress} = \frac{\text{Current Portfolio}}{\text{FIRE Target}} \times 100\%

Frequently asked questions

What is a FIRE number?

Your FIRE number is the total amount of money you need to have invested before you can retire. The calculator finds it by dividing your yearly retirement spending by your withdrawal rate. For example, if you spend $40,000 a year and use a 4% withdrawal rate, your FIRE number is $1,000,000.

What is the 4% rule?

The 4% rule says you can withdraw 4% of your portfolio each year in retirement and your money should last at least 30 years. It is based on a 1994 study by William Bengen. This calculator uses 4% as the default withdrawal rate, but you can change it in the advanced options.

How does the calculator sync income, savings, expenses, and savings rate?

These four fields are linked. When you change one, the others update automatically. If you type a new income, savings stays the same and expenses adjust. If you change expenses, savings adjusts. If you change the savings rate, both savings and expenses update to match. You only need to edit one field at a time.

What is the difference between real and nominal dollars?

Real dollars show everything in today's purchasing power. Nominal dollars show the actual future amount, which looks bigger because of inflation. Use real dollars to understand what your money can actually buy. Use nominal dollars to see what the account balance will look like in the future.

What return rate should I use?

The default is 7%, which is close to the long-term average real return of the U.S. stock market after inflation. If you invest heavily in bonds or keep a lot in cash, use a lower number. If you want to be cautious, try 5% or 6%. You can test different rates using the sensitivity analysis section.

What is the difference between Fixed Return, Historical Cycles, and Monte Carlo?

Fixed Return uses the same growth rate every year. It is simple and easy to understand. Historical Cycles runs your plan through real past market data to show how it would have performed. Monte Carlo runs 1,000 random simulations based on your asset allocation to show a range of possible outcomes and a success rate.

How does the retirement tax rate affect my FIRE number?

The calculator adds taxes on top of your spending. If you plan to spend $40,000 a year and set a 15% tax rate, you actually need to withdraw more than $40,000 to cover both spending and taxes. This makes your FIRE number bigger. Set it to 0% if your withdrawals will be tax-free, like from a Roth account.

What are extra income and expense streams?

These let you add cash flows that happen during certain ages. For example, you can add a mortgage payment that stops at age 50, rental income that starts at age 45, or a one-time inheritance. Positive numbers are income and negative numbers are expenses. You can add up to 8 streams.

Why does the asset allocation need to add up to 100%?

The allocation shows how your entire portfolio is split between stocks, bonds, and cash. These three parts must equal 100% because they represent all of your investments. If they do not add up, the calculator will show a warning. Adjust the numbers until they total 100%.

How does income growth rate change my results?

The income growth rate increases your savings each year. If your income grows by 2% per year after inflation, your annual savings also grows by 2%. This means you add more money to your portfolio over time, which helps you reach your FIRE number faster.

What does the success rate mean in Monte Carlo or Historical mode?

The success rate tells you what percentage of simulations reached the FIRE number within the time horizon. For example, a 90% success rate means 900 out of 1,000 simulations hit the target. A higher success rate means your plan is more likely to work even in bad market conditions.

What if the calculator says I cannot reach FIRE?

This means your portfolio does not grow large enough within the maximum projection period (up to 70 years). To fix this, try increasing your savings rate, lowering your retirement spending, or raising your expected return. Even a 5% boost to your savings rate can shave years off your timeline.

How does Barista FIRE lower my FIRE number?

In Barista FIRE, your part-time income covers part of your yearly spending. The calculator subtracts that income from your expenses before calculating the FIRE number. If you spend $50,000 a year and earn $20,000 part-time, your portfolio only needs to cover $30,000 a year. This means a smaller target and a faster path.

How does Coast FIRE work in this calculator?

Coast FIRE finds the amount you need invested right now so it can grow to your full FIRE number by your target retirement age with no new contributions. The calculator divides the FIRE number by the compound growth factor between now and your target age. Once you hit the coast number, you only need to earn enough to cover current expenses.

What does the sensitivity analysis show?

The sensitivity analysis shows how your results change when one input goes up or down. The spending chart shows how more or less spending changes your timeline. The return chart shows the effect of higher or lower investment returns. The savings rate table shows your retirement age at nearby savings rates. This helps you understand which changes matter most.

Can I use this calculator if I already have a large portfolio?

Yes. Enter your current portfolio value and the calculator will include it. If your portfolio is already close to or above your FIRE number, the results will show 0 years to FIRE and 100% progress. The gauge chart and milestone tracker will reflect that you have already reached your goal.

What does the milestone tracker show?

The milestone tracker shows when you will hit 25%, 50%, 75%, and 100% of your FIRE number. Each milestone shows the age you will reach it. If you have already passed a milestone, it is marked as reached. This helps you see your progress in clear steps.

Is 7% a realistic return rate?

A 7% real return is based on the historical average of the U.S. stock market after inflation. It is a common assumption for a portfolio heavy in stocks. If you hold more bonds or cash, your blended return will be lower. You can set custom returns for each asset class in the advanced options to get a more accurate number for your mix.

How do I read the year-by-year table?

Each row shows one year. You see the starting portfolio value, how much savings you added, how much growth your investments earned, the ending value, and what percentage of your FIRE number you have reached. The row where you hit 100% is highlighted in green. This is the year you reach FIRE.

Does this calculator account for Social Security or pensions?

Not by default, but you can add them as extra income streams. Click Add Income or Expense Stream, enter the yearly amount as a positive number, and set the start and end ages. For example, you could add Social Security starting at age 67. This will reduce the amount your portfolio needs to cover each year.