What is a FIRE number? ▾
Your FIRE number is the total portfolio you need so your investments generate enough passive income to cover all your expenses forever. It's calculated using the 4% rule: annual spending ÷ 0.04 = FIRE number. If you spend $48,000/year, your FIRE number is $1,200,000.
What is the 4% rule and is it still valid? ▾
The 4% rule comes from the 1998 Trinity Study, which found that a diversified portfolio could sustain a 4% annual withdrawal for 30+ years historically. Most modern researchers suggest 3.5% for very early retirees (retiring at 35 vs 65) to account for longer time horizons. This calculator uses 4% as the default.
What return rate should I use? ▾
The historical inflation-adjusted S&P 500 average is approximately 7% annually. For conservative planning, use 5-6%. For optimistic projections, use 8-9%. The default of 7% is what most FIRE community members use as a baseline.
How do I reach FIRE faster? ▾
The two most powerful levers are: (1) increasing monthly investment — going from $800 to $1,800/mo can cut your timeline by 8+ years, and (2) reducing your FIRE number — spending $40k instead of $55k/year drops your target by $375,000. Income growth has more leverage than expense cuts at most income levels.
What is the difference between FIRE, Coast FIRE, and Barista FIRE? ▾
Full FIRE means your portfolio generates enough passive income to cover 100% of your expenses with no work. Coast FIRE means your current investments will grow to your FIRE number by retirement with zero future contributions — you just need to cover living expenses. Barista FIRE means you quit your main career early, do fun part-time work to cover expenses, and let investments grow to full FIRE.
Should I include my 401k and Roth IRA in current savings? ▾
Yes — include all invested assets. 401k, IRA, Roth IRA, brokerage accounts. Don't include your emergency fund, house equity (unless planning to downsize), or checking account. The key question is: what is invested and growing in the market?
Is this calculator accurate? ▾
This calculator uses standard compound interest math with monthly compounding. It's a planning tool, not a guarantee. Real returns vary year to year, inflation fluctuates, and life happens. Use it to understand your trajectory and make better decisions — not as a precise retirement contract.