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FIRE calculator

Retire early (FIRE)4% rule
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Years to financial independence

17.7 yrs
FIRE number$1,000,000
Progress5%

Once you hit $1,000,000, a 4% withdrawal covers $40,000 of spending a year — work becomes optional.

Show the work
  1. Yearly spending to cover: $40,000
  2. The 4% rule, restated: 1 ÷ 4% = 25× spending
  3. FIRE number: $40,000 × 25 = $1,000,000
  4. Already saved: $50,000, so $1,000,000 − $50,000 = $950,000 left to go
  5. At 7% a year, adding $2,000/month, that gap closes in 17.7 years

Same math, shown. No hidden assumptions.

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FIRE stands for Financial Independence, Retire Early. The idea is to save and invest until your portfolio is large enough that its growth covers your living costs — so working becomes optional. This calculator estimates how many years that takes.

The 4% rule and the 25x number

The math behind FIRE rests on one finding: in historical testing, a portfolio that you draw 4% from in the first year — then adjust for inflation each year after — has lasted at least 30 years across most starting points. Turn that 4% upside down and you get the multiple you need to save: 1 divided by 0.04 is 25. So your target is simply your yearly spending times 25.

  • Spend $40,000 a year, your number is $1,000,000.
  • Spend $50,000, it climbs to $1,250,000.
  • Spend $60,000, you need $1,500,000.

Every extra $1,000 of annual spending adds $25,000 to the finish line. That is why cutting recurring costs does double duty: it frees up money to invest now and shrinks the target you are investing toward.

Your savings rate decides the date — not your salary

The single most surprising thing about early retirement is that the years-to-freedom depends far more on the share of your pay you keep than on how big the paycheck is. A high earner who spends almost everything stays on the long road; a modest earner who banks half their income gets there fast. The reason is that your savings rate sets both sides of the equation at once — a higher rate means more invested each month and a smaller number to hit.

Take someone taking home $60,000 a year, starting from zero, with a 7% return after inflation. Watch what the savings rate alone does:

  • 15% saved ($750/mo): about 34 years to financial independence.
  • 30% saved ($1,500/mo): about 23 years.
  • 40% saved ($2,000/mo): about 18.5 years.
  • 50% saved ($2,500/mo): about 14.5 years.
  • 60% saved ($3,000/mo): about 11 years.

Same salary, same returns — only the savings rate changes, and the timeline swings by more than two decades. Going from saving 15% to saving 40% of the same income cuts the wait roughly in half.

Two people, the same income, very different finish lines

Picture two people both earning $80,000 take-home, both starting at zero, both earning 7%. One saves 15% and lives on $68,000; the other saves 40% and lives on $48,000. The first reaches independence in about 34 years. The second gets there in about 18.5 years — almost 16 years sooner, on the exact same paycheck. The gap is entirely the choice of how much to spend.

What moves the number most

  • Spending. Lower yearly spending shrinks the target and lifts your savings rate at the same time, so it is the biggest lever by far.
  • How much you already have. A head start matters. With $2,000 saved monthly and a 7% return, beginning with $100,000 already invested instead of $0 cuts the timeline from about 18.5 years to under 15. Save enough early and compounding can even finish the job without you — that milestone is called Coast FIRE, and the Coast FIRE guide shows how to find your number.
  • Returns. Helpful, but the least controllable. The numbers above use 7%, a common stand-in for long-run stock returns after inflation; assuming more does not make it happen.

If you are retiring in your 40s, be careful with 4%

The 4% rule was measured against a 30-year retirement. Leave work at 45 and your money may need to last 50 years, which is a different test. Many early retirees use a more cautious rate, and the cost of caution is real. On $50,000 of spending:

  • 4% needs $1,250,000.
  • 3.5% needs about $1,430,000.
  • 3% needs about $1,670,000.

That is the trade: a lower withdrawal rate buys a wider safety margin against a bad early run of markets, but it pushes the target up by hundreds of thousands and adds years to the climb.

Frequently asked questions

What counts as my yearly spending for FIRE?

Use what you expect to spend in a typical retirement year, not your current take-home pay. Drop work costs like commuting, but add anything that grows later, such as health coverage you currently get through a job.

Is the 4% rule still safe for retiring early?

It was built around a 30-year retirement. If you stop working in your 40s, your money may need to last 50 years, so some people aim for a more cautious 3% to 3.5% withdrawal, which raises the target.

Should I count my home equity in the number?

Usually not. The 4% rule assumes an invested portfolio you can draw from. A house you live in does not pay your grocery bill, so most people leave it out unless they plan to sell and downsize.

What is Coast FIRE?

It is the point where your invested savings can grow to cover retirement on their own, even if you stop adding money. You still work to pay today's bills, but you no longer need to save for the future.

Last reviewed June 2026. This tool is for education, not financial advice.