Fire Number
Calculator
Results
- FIRE number
- 1,200,000
- Annual expenses
- 48,000
- Multiple of annual expenses
- 25
Retirement planning results
| FIRE number | 1,200,000 |
| Annual expenses | 48,000 |
| Multiple of annual expenses | 25 |
formula-map diagram
- FIRE number
- 1,200,000
- Annual expenses
- 48,000
- Multiple of annual expenses
- 25
Retirement planning relationship
Formula
FIRE = (monthly expenses × 12) ÷ r= 1200000
Note
This is not financial advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, assumes a single constant rate for every year, and ignores taxes, fees, sequence-of-returns risk, health costs, longevity risk and any country's specific pension, benefit or minimum-distribution rules. Real returns can be negative and real retirements rarely follow a smooth curve. Check the assumptions and consult a licensed adviser before acting on any figure.
More in Retirement planning
See all →Frequently asked questions
What is a FIRE number and how is it calculated?+
It's the portfolio size needed to sustain your annual expenses indefinitely, typically calculated as annual spending divided by a withdrawal rate (e.g. expenses / 0.04, equivalent to expenses x 25). It's the core target figure behind the Financial Independence, Retire Early movement.
Why multiply expenses by 25 instead of some other number?+
Multiplying by 25 is the same as dividing by a 4% withdrawal rate, based on historical research suggesting a 4% initial withdrawal (adjusted for inflation) had a strong track record of lasting 30+ years. Choosing a lower withdrawal rate, such as 3.5%, means multiplying by a higher number (about 28.6) for a more conservative target.
Should I base the number on current spending or retirement spending?+
Use your expected spending in retirement, not necessarily your current spending — costs often shift (commuting and work costs drop, healthcare and leisure costs may rise), so a rough retirement budget gives a more accurate FIRE number than your current pay-stub expenses.
Does the FIRE number include a margin for taxes and healthcare?+
Not automatically — you need to build those into your expense estimate yourself, since healthcare before Medicare/public coverage eligibility and taxes on withdrawals are two of the most commonly underestimated retirement costs. Padding your expense figure for these is safer than assuming the calculator accounts for them.
Is one fixed FIRE number reliable for a 40+ year retirement?+
It's a reasonable target but not a guarantee — very long retirement horizons carry more sequence-of-returns risk and more uncertainty about future costs, so many early retirees plan to remain flexible on spending or keep a part-time income option rather than relying on a single static number.