FIRE Calculator - Financial Independence
Calculate how much capital you need to live off your investments (your "FIRE number") and how many years it will take to get there at your current savings rate.
Results
Your FIRE number
—
Years to reach it
—
Current progress
—
Monthly income available once reached
—
FIRE number = desired annual expenses ÷ safe withdrawal rate. Years to reach it are calculated by projecting your current savings plus monthly contributions month by month at the given return, until the accumulated capital matches the FIRE number.
When should you use this calculator?
The FIRE movement (Financial Independence, Retire Early) aims to accumulate enough capital to cover living expenses from investment returns alone, without relying on a salary. This calculator estimates how much capital you need and how many years it will take at your current savings rate.
Legal context in Spain
The 4% rule, popularized by the Trinity Study, suggests that withdrawing 4% a year from a diversified portfolio has historically had a high probability of not running out of money over 30 years. Some people use more conservative rates, like 3% or 3.5%, for longer horizons.
The FIRE number is simply the inverse of the withdrawal rate: if you need €24,000 a year and use a 4% rate, your FIRE number is €600,000 (24,000 ÷ 0.04).
The result is a mathematical projection that assumes a constant return and doesn't account for inflation, taxes or market volatility. It is not financial advice.
Frequently asked questions
What is the 4% rule?
It's a guideline based on historical market data suggesting that withdrawing 4% a year from a diversified portfolio, adjusted for inflation annually, has historically had a high probability of sustaining the capital for at least 30 years.
What is a "FIRE number"?
It's the total capital you need to accumulate so that withdrawing your chosen rate each year covers your annual expenses without working. It's calculated by dividing your annual expenses by the withdrawal rate.
Why use a withdrawal rate other than 4%, like 3% or 3.5%?
A lower rate reduces the risk of running out of money over very long horizons (like a 40-50 year retirement) or in unfavorable market scenarios, at the cost of needing a larger starting capital.
Does this calculator account for inflation?
Not explicitly. It assumes the annual return you enter is already a reasonable long-term estimate; for a more conservative result, you can enter a return net of inflation (a "real" return).
What annual return is realistic to assume?
It depends on your portfolio: a diversified global equity portfolio has historically averaged around 6-8% a year over the long run, though past performance doesn't guarantee future results.
Does financial independence mean I can never work again?
Not necessarily. Many people who reach their FIRE number keep working at something they enjoy, just without financially depending on that income — known as "Coast FIRE" or "Barista FIRE" depending on the approach.