Explore Our FIRE Calculator to map out your path to financial freedom and early retirement. By entering your unique financial details, you’ll uncover how much you need to save and invest to reach your retirement dreams well before the usual timeline.

Tailor your plan by factoring in inflation, tweaking for taxes, or choosing your ideal retirement age—this tool offers a detailed snapshot to steer your journey. Begin today and take a bold step toward realizing your FIRE ambitions!

Financial Freedom Calculator

FIRE Calculator

ⓘ Enter your desired monthly net income in retirement.
ⓘ Enter the expected annual return on your investments.
ⓘ Do you want to consider inflation in the calculations?
ⓘ Enter your personal tax rate.
ⓘ Enter your current age.
ⓘ Enter the age at which you wish to retire.
ⓘ Enter your current available capital.
ⓘ Do you plan to deplete your capital during retirement?

Guide to Using the FIRE (Financial Independence, Retire Early) Calculator

Our FIRE Calculator empowers you to chart your course to financial independence and an early exit from the workforce. Input your financial specifics to estimate the savings and investments required for your envisioned retirement lifestyle.

Follow this step-by-step breakdown to navigate the calculator:

1. Target Monthly Net Income ($)

  • Definition: The monthly sum you’ll need in retirement to sustain your lifestyle and cover expenses.
  • Instructions: Provide the net income you’d like to enjoy each month once retired.
  • Sample: If you estimate needing $4,000 monthly, input 4000.

2. Projected Annual Return (%)

  • Definition: The yearly average gain you expect from your investments prior to retiring.
  • Instructions: Enter the annual percentage return you foresee from your investment mix.
  • Sample: For a balanced portfolio, a typical guess might be 7%.

3. Account for Inflation

  • Definition: Inflation erodes money’s value over time.
  • Instructions: Choose Yes to include inflation in your calculations, or No to skip it.
  • Tip: Including inflation is recommended for a realistic view of future needs.

4. Yearly Inflation Rate (%)

  • Definition: The expected annual rise in the cost of goods and services.
  • Instructions: If you selected Yes for inflation, input the anticipated rate.
  • Sample: A standard long-term rate might be 2%.

5. Tax Percentage (%)

  • Definition: The income tax rate impacting your net investment earnings.
  • Instructions: Enter your combined federal and state tax rate.
  • Sample: With a 22% federal rate and 5% state tax, input 27.

6. Your Present Age

  • Definition: How old you are right now.
  • Instructions: Provide your current age in years.
  • Sample: If you’re 35, enter 35.

7. Planned Retirement Age

  • Definition: The age you intend to stop working.
  • Instructions: Input when you aim to gain financial independence.
  • Sample: To retire at 50, enter 50.

8. Current Savings ($)

  • Definition: The total funds you’ve already set aside or invested for retirement.
  • Instructions: Enter the present value of your retirement nest egg.
  • Sample: With $100,000 saved, input 100000.

9. Deplete Capital

  • Definition: Whether you’ll use up your initial savings in retirement or rely solely on returns.
  • Choices:
    • No: You’ll live off returns, preserving your principal.
    • Yes: You’re fine with gradually spending your savings.
  • Instructions: Pick Yes or No based on your retirement approach.

10. Retirement Length (Years)

  • Definition: How many years you expect to be retired.
  • Instructions: If you chose Yes for depleting capital, enter the duration your funds should last.
  • Sample: For a 30-year retirement, input 30.

11. Compute Results

  • Action: Hit the “Calculate” button to analyze your entries and view the outcome.

What Is the FIRE Movement?

The FIRE (Financial Independence, Retire Early) movement is a lifestyle and financial strategy centered on aggressive saving and investing to retire far earlier than traditional norms. By stashing away a large share of their income, FIRE followers strive to secure financial freedom years—or even decades—ahead of the usual retirement age.
Core Tenets of the FIRE Approach:

  1. High Savings Rate: Dedicate a hefty chunk of your income—often 50% or more—to quickly grow your investment base.
  2. Simple Living: Embrace a lean lifestyle by cutting costs, such as opting for a smaller home, curbing luxuries, and dodging debt.
  3. Smart Investing: Channel savings into assets with strong growth potential, like index funds, property, or stocks yielding dividends.
  4. Passive Earnings: Build low-maintenance income sources, letting compound interest fuel your wealth.
  5. Money Mastery: Keep learning about finance, investment tactics, and market shifts to make savvy choices.
  6. Clear Targets: Set defined financial goals and checkpoints to monitor your early retirement progress.

By following these guidelines, FIRE enthusiasts amass enough wealth to live off investment returns, granting them the freedom to retire young and pursue passions, hobbies, or new ventures unburdened by conventional work demands.