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FIRE Calculator — Financial Independence & Early Retirement

Calculate your FIRE number, years to financial independence, and the safe withdrawal income it supports.

Last reviewed by the myCalculator Editorial Team

This calculator uses Australian rules and Australian data sources. Results may not apply outside Australia.

Input Parameters

$/yr
$
$/yr
%

Use a real (after-inflation) return — around 7% for a long-run diversified equity portfolio.

%

Calculation Results

FIRE Target Portfolio
$1,500,000
Years to FIRE (7% real return)
20 years
Monthly Passive Income at FIRE
$5,000/mo
Current Portfolio
$100,000
Portfolio Gap to FIRE
$1,400,000
Annual Savings
$30,000
Savings Rate
33.3%
Safe Withdrawal Rate (SWR)
4%
Summary: Based on a 4% safe withdrawal rate, you need a $1,500,000 portfolio to retire on $60,000/year. At a 7% real return and saving $30,000/year, you'll reach FIRE in 20 years.
Step-by-Step Calculation Solution
1.FIRE Target (Bengen 4% Rule) = Annual Expenses / SWR = $60,000 / 4% = $1,500,000
2.Portfolio Gap = $1,500,000 - $100,000 = $1,400,000
3.Savings Rate = Annual Savings / (Savings + Expenses) = $30,000 / $90,000 = 33.3%
4.Year-by-year: Portfolio × (1 + 0.07) + $30,000 until ≥ $1,500,000
5.Years to FIRE = 20 years
6.Monthly Passive Income at FIRE = $1,500,000 × 4% / 12 = $5,000

Formula & How FIRE Calculator — Financial Independence & Early Retirement Works

Mathematical Formula
FIRE Number = Annual Expenses / SWR | Years = ln((FIRE×r + S) / (P×r + S)) / ln(1 + r)

The FIRE number is the investment portfolio you need so that a safe withdrawal rate covers your annual spending: number = annual expenses ÷ withdrawal rate. At $60,000 of expenses and a 4% withdrawal rate the target is $1,500,000. Starting from $100,000 and saving $30,000 a year at a 7% real return, the years to reach it are ln((1,500,000 × 0.07 + 30,000) ÷ (100,000 × 0.07 + 30,000)) ÷ ln(1.07) = about 19 years. The 4% rule comes from US historical data and may not suit everyone, especially for very long retirements. Returns are uncertain, so test lower returns and higher expenses. This is an illustration, not financial advice.

How to Calculate FIRE Calculator — Financial Independence & Early Retirement (Step-by-Step)
  1. Enter Annual Living Expenses ($) ($/yr): Input your target parameter value.
  2. Enter Current Invested Portfolio ($) ($): Input your target parameter value.
  3. Enter Annual Savings / Contributions ($) ($/yr): Input your target parameter value.
  4. Enter Expected Real Return (% p.a.) (%): Input your target parameter value.
  5. Enter Safe Withdrawal Rate (%) (%): Input your target parameter value.
  6. Apply Formula: Calculate using FIRE Number = Annual Expenses / SWR | Years = ln((FIRE×r + S) / (P×r + S)) / ln(1 + r).
  7. Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)

Is the 4% rule still safe for early retirement?

The 4% rule was tested over 30-year retirements. For a retirement of 40 to 50 years, most researchers suggest a more conservative 3.25% to 3.5% withdrawal rate.

Does superannuation count toward my FIRE number?

It counts toward total net worth, but Australian super is preserved until age 60, so early retirees need a separate outside-super portfolio to bridge the years until preservation age.

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Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:

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