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Calculate Your FIRE Number

Find out exactly how much you need to retire early

Imagine waking up on a Monday morning knowing you don't have to work—you could travel, pursue hobbies, spend time with family, or even keep working on something you love. That's the promise of FIRE: Financial Independence, Retire Early.

But FIRE isn't really about never working again. It's about having the freedom to choose. It's about escaping the paycheck-to-paycheck cycle, building enough wealth that work becomes optional, and designing a life on your own terms.

What Is FIRE?

FIRE stands for Financial Independence, Retire Early. It's a movement and lifestyle approach focused on aggressive saving and investing to achieve financial freedom much earlier than the traditional retirement age of 65.

The Two Components

Financial Independence (FI)

Having enough invested assets that the returns can cover your living expenses indefinitely. You no longer need a paycheck to survive.

Retire Early (RE)

Using that financial independence to stop mandatory work, often in your 30s, 40s, or early 50s—decades before traditional retirement.

What FIRE Is NOT

✗Not about extreme deprivation—It's about intentional spending on what matters to you.
✗Not only for high earners—It's about savings rate, not income level.
✗Not about never working again—Many FIRE'd people work on passion projects.
✗Not a get-rich-quick scheme—It typically takes 10-20+ years of disciplined saving.

The Core Philosophy: Time is more valuable than money. By optimizing spending and maximizing savings, you buy back decades of your life to spend as you choose.

Types of FIRE

FIRE isn't one-size-fits-all. Different people have different goals, spending preferences, and comfort levels. Here are the main variations:

🥬Lean FIRE

Living on a minimalist budget, typically $20,000-$40,000/year per person or couple.

Target FIRE Number: $500K - $1M

Best For: Minimalists, low cost-of-living areas

✓ Fastest to achieve✓ Lower stress⚠ Less buffer for unexpected expenses

💎Fat FIRE

Maintaining a comfortable or even luxurious lifestyle, $100,000+/year spending.

Target FIRE Number: $2.5M - $5M+

Best For: High earners, those who want lifestyle flexibility

✓ Maximum freedom✓ Large safety margin⚠ Takes longer to reach

☕Barista FIRE

Saving enough to quit your career but working part-time for benefits or enjoyment.

Target FIRE Number: 50-75% of traditional FIRE number

Best For: Those who want work-life balance sooner

✓ Faster to achieve✓ Health insurance from employer✓ Social engagement

🏖️Coast FIRE

Saving aggressively early, then letting compound interest do the work while you coast with lower-stress jobs.

How It Works: Reach a certain invested amount, then only earn enough to cover current expenses

Best For: Young savers who want flexibility soon

✓ Early career flexibility✓ Leverages compound interest✓ Lower savings pressure

How to Calculate Your FIRE Number

Your "FIRE number" is the amount of money you need invested to live off the returns forever. It's based on the famous 4% Rule (or Safe Withdrawal Rate).

The 4% Rule

Annual Expenses × 25 = FIRE Number

Based on the Trinity Study, a diversified portfolio can sustain 4% annual withdrawals (adjusted for inflation) for 30+ years with 95%+ success rate.

Example Calculations

Annual Expenses	× 25	FIRE Number	FIRE Type
$30,000	× 25	$750,000	Lean FIRE
$50,000	× 25	$1,250,000	Regular FIRE
$80,000	× 25	$2,000,000	Chubby FIRE
$120,000	× 25	$3,000,000	Fat FIRE

Conservative Adjustments

Some FIRE advocates use more conservative multipliers:

× 25 (4% rule) — Traditional FIRE calculation
× 28.5 (3.5% rule) — More conservative for longer retirements
× 33 (3% rule) — Very conservative, nearly fail-proof

Calculate Your Personal FIRE Number

Factor in your expenses, investment returns, and timeline.

Calculate My FIRE Number

The Magic of Savings Rate

Here's the surprising truth: your savings rate matters more than your income or investment returns. The percentage you save determines how fast you reach FIRE.

Savings Rate → Years to FIRE

Assuming 5% real investment returns and living on the rest:

Savings Rate	Years to FIRE	Example Age*
10%	51 years	Retire at 73
20%	37 years	Retire at 59
30%	28 years	Retire at 50
40%	22 years	Retire at 44
50%	17 years	Retire at 39
60%	12.5 years	Retire at 34
70%	8.5 years	Retire at 30
80%	5.5 years	Retire at 27

*Starting from $0 at age 22

Why Savings Rate Works Both Ways

A high savings rate does two things simultaneously:

Accelerates wealth building — More money invested means more compound growth
Reduces your FIRE number — Living on less means you need less to sustain that lifestyle

The Double Power: Someone earning $50,000 and saving 50% ($25,000) reaches FIRE faster than someone earning $150,000 but saving 10% ($15,000)—even though they save more in absolute dollars.

Track your savings rate with our Savings Tracker or optimize your budget with the 50/30/20 method.

FIRE Strategies: How to Get There

🏠 Housing

Housing is typically your biggest expense. FIRE seekers optimize by:

• House hacking: Renting out rooms or buying a multi-family and living in one unit
• Geographic arbitrage: Living in lower cost-of-living areas
• Downsizing: Smaller home = lower costs, less maintenance
• Paying off mortgage early or keeping housing costs under 25% of income

💼 Income

While savings rate matters most, increasing income accelerates the journey:

• Career advancement: Strategic job changes, skill development, promotions
• Side hustles: Freelancing, consulting, gig work in your spare time
• Passive income: Rental properties, dividend investing, online businesses
• Skill stacking: Combining complementary skills for higher-paying roles

📈 Investing

FIRE investors typically favor:

• Low-cost index funds: Total market or S&P 500 funds (VTSAX, VTI, VOO)
• Tax-advantaged accounts: Max out 401(k), IRA, HSA before taxable accounts
• Asset allocation: Stock-heavy during accumulation (80-90% stocks)
• Buy and hold: Ignore market timing, stay invested through ups and downs

💳 Expense Optimization

Cutting expenses intentionally without sacrificing happiness:

• Track every dollar: You can't optimize what you don't measure
• Eliminate subscriptions: Cancel unused services ruthlessly
• Transportation: One car or car-free, used vehicles, bike commuting
• Food: Cook at home, meal prep, limit dining out
• Travel hacking: Use credit card points for free travel

Use our Budget Planner to find your saving opportunities.

Common Criticisms and Concerns

"The 4% rule won't work for 50+ year retirements"

Counter: The original Trinity Study was for 30-year retirements, but many FIRE'd individuals don't actually stop working entirely, continue earning some income, and can adjust spending during market downturns. A 3-3.5% withdrawal rate or flexible spending strategy addresses this concern.

"What about healthcare costs?"

Counter: This is a real concern, especially in the US. Strategies include: Barista FIRE for employer benefits, ACA marketplace plans (often subsidized at lower incomes), Health Sharing Ministries, or relocating to countries with universal healthcare.

"What if the market crashes?"

Counter: Sequence of returns risk is real. Solutions include: keeping 1-2 years of expenses in cash, flexible withdrawal strategies (reduce spending in down years), having side income options, and/or using a bucket strategy for different time horizons.

"It's only for privileged people"

Counter: While higher incomes make FIRE faster, the principles—living below your means, investing consistently, optimizing spending—benefit everyone. Even partial FIRE (Barista/Coast) or just applying FIRE principles can dramatically improve financial security at any income level.

"Won't you get bored without work?"

Counter: Most FIRE'd people don't do nothing—they pursue passion projects, volunteer, travel, spend time with family, start businesses, or continue working on their own terms. The goal isn't laziness; it's freedom to choose how you spend your time.

How to Get Started

Calculate Your Current Numbers

Track your income, expenses, and current net worth. Use our Net Worth Calculator.

Define Your FIRE Type & Number

Decide which FIRE variant fits your goals. Calculate your target using Annual Expenses × 25.

Increase Your Savings Rate

Start with the 50/30/20 budget, then optimize further. Target 30-50%+ savings rate.

Invest Consistently

Max tax-advantaged accounts first, then taxable. Low-cost index funds. Automate contributions.

Track Progress & Stay Motivated

Review your numbers monthly. Celebrate milestones. Connect with the FIRE community.

Key Takeaways

🔥FIRE = Financial Independence, Retire Early—it's about freedom to choose, not necessarily never working again.
🔥FIRE Number = Annual Expenses × 25—based on the 4% safe withdrawal rate.
🔥Savings rate is the key variable—it both accelerates saving and reduces how much you need.
🔥Choose your FIRE type—Lean, Fat, Barista, or Coast based on your lifestyle preferences.
🔥Start today—every year of compound growth counts. The best time to start was yesterday; the second best is now.

Related Resources

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Ready to Start Your FIRE Journey?

Calculate your FIRE number and see how long until you reach financial independence.