fire financial independence retire early calculator

The purpose of the Financial Independence Retire Early Calculator is to help you crunch the numbers that will be necessary for you to achieve. The CPF Retirement Calculator is an interactive tool that helps you to determine if your retirement goal is achievable. Have you heard of the FIRE Movement? It stands for Financial Independence, Retire Early. Financial independence is the goal and followers of the movement.

Fire financial independence retire early calculator -

Financial Independence, Retire Early (FIRE)

What Is Financial Independence, Retire Early (FIRE)?

Financial Independence, Retire Early (FIRE) is a movement of people devoted to a program of extreme savings and investment that aims to allow them to retire far earlier than traditional budgets and retirement plans would permit. Born out of the 1992 best-selling book Your Money or Your Life by Vicki Robin and Joe Dominguez, FIRE came to embody a core premise of the book: People should evaluate every expense in terms of the number of working hours it took to pay for it.

Key Takeaways

  • Financial Independence, Retire Early (FIRE) is a financial movement defined by frugality and extreme savings and investment.
  • By saving up to 70% of their annual income, FIRE retirement proponents aim to retire early and live off small withdrawals from their accumulated funds.
  • The FIRE movement was inspired by the 1992 book Your Money or Your Life, written by two financial gurus.

Click Play to Learn What the FIRE Movement Is

Understanding FIRE

The FIRE retirement movement takes direct aim at the conventional retirement age of 65 and the industry that has grown up to encourage people to plan for it. By dedicating a majority of their income to savings, followers of the FIRE movement hope to be able to quit their jobs and live solely off small withdrawals from their portfolios decades before they reach 65.

As reported by Vox, in recent years, millennials in particular have embraced pursuing a FIRE retirement. Proponents of the extreme-saving lifestyle remain in the workforce for several years, saving up to 70% of their yearly income. When their savings reach approximately 30 times their yearly expenses, or roughly $1 million, they may quit their day jobs or retire from work altogether.

To cover their living expenses after retiring at a young age, FIRE devotees make small withdrawals from their savings, typically around 3% to 4% of the balance yearly. Depending on the size of their savings and their desired lifestyle, this requires extreme diligence to monitor expenses as well as dedication to the maintenance and reallocation of their investments.

Several FIRE retirement variations that dictate the lifestyle the FIRE movement's devotees are willing and able to maintain have evolved within it, as reported by Forbes Advisor.

  • Fat FIRE—This is for the individual with a traditional lifestyle who aims to save substantially more than the average worker but doesn’t want to reduce their current standard of living. It generally takes a high salary and aggressive savings and investment strategies for it to work.
  • Lean FIRE—This requires stringent adherence to minimalist living and extreme savings, necessitating a far more restricted lifestyle. Many Lean FIRE adherents live on $25,000 or less per year.
  • Barista FIRE—This is for people who want to exist between the two choices above. They quit their traditional 9-to-5 jobs, but use a combination of part-time work and savings to live a less-than-minimalist lifestyle. The former lets them obtain health coverage, while the latter prevents them from dipping into their retirement funds.

For Whom Is FIRE Really?

Most people think that FIRE is meant for people who can pull in a substantial income, generally in the six figures. And indeed, if your goal is to retire in your 30s or 40s, that probably is the case. However, there is plenty for everyone to learn from the principles of the movement that can help people save for their own retirement and even achieve an early one, if not quite as early as 40.

And remember, the first part of FIRE stands for financial independence, something that, if achieved, can allow you to—instead of retiring—work at something you love rather than something you have to do. Author Robin says in the book that FIRE is not just about retiring early; rather, it teaches you how to consume less while living better.

Detailed planning

It is important for everyone to plan for their retirement, and yet, according to a May 2021 report from the Federal Reserve System Board of Governors, in 2020, one in four Americans had no retirement savings whatsoever, while 36% who did have savings felt that their retirement plans were not on track. The FIRE movement stresses the importance of having a detailed plan and sticking to it, principles that will aid anyone in saving for retirement and maintaining a decent emergency fund.

Economic discipline

In order to achieve a FIRE retirement, you have to maximize your income while minimizing your expenses. Retiring by 40 requires you to go to extremes to succeed, but everyone can benefit from making and sticking to a budget while doing all they can to earn as much money as possible, whether it's by getting a better job, adding a second one, or creating additional revenue streams through sideline businesses or owning rental property.

Wise investment

No one can achieve a secure retirement without investing in their retirement savings. FIRE adherents invest larger portions of their income than the average person will want to. But the principle of setting aside a set percentage of your income every month for investment—and starting to do that as early as possible—will allow you to grow your retirement savings to a point where they can assure you financial stability in your later years.

What Does FIRE Really Mean?

The acronym FIRE means Financial Independence, Retire Early and is a term from the book Your Money or Your Life by Vicki Robin and Joe Dominguez, which was first published in 1992. A revised and updated version was released in 2008 and again in 2018.

The aim of the book, according to comments by Robin, is not to convey a master plan for early retirement; it is to show people how to live well while consuming less in order to have a more rewarding life while wasting less of the world’s resources. Or, as Robin put it, “If you live for having it all, what you have is never enough.”

How Does FIRE Work?

Followers of FIRE plan to retire much earlier than the traditional retirement age of 65 by dedicating up to 70% of income to savings while they are still in the workforce full time. When their savings reach approximately 30 times their yearly expenses, or roughly $1 million, they may quit their day jobs or completely retire from any form of employment.

To cover their living expenses after retiring at a young age, FIRE devotees make small withdrawals from their savings, typically around 3% to 4% yearly. Both during their working years and in retirement, FIRE followers aim to reject excessive consumption and enjoy a simpler lifestyle.

What Are Some FIRE Variations?

Within the FIRE movement are several variations. Fat FIRE is a more easygoing attempt to save more while giving up less. Lean FIRE requires devotion to minimalist living. Barista FIRE is for those who want to quit the 9-to-5 rat race and are willing to cut back their spending while working only part time to do so.

Naturally, more traditional financial advisors have been willing to jump in with their own variations on a FIRE retirement goal and how to achieve it. One strategy requires a FIRE investor to include both U.S. and international stocks and bonds in their portfolio, potentially increasing their success rate by 20%.

Last update: 06 October 2020

Financial Independence, Retire Early — or FIRE for short — is a financial plan followed by a growing number of committed savers. By putting aside the majority of their annual income, hardcore FIRE fans reject the typical pathway of working into old age. Instead, they live a frugal lifestyle in earlier years so that they can have more freedom in later years. Some FIRE followers even retire in their 30s or 40s!


  • FIRE stands for Financial Independence, Retire Early. There are various versions of the concept to encapsulate different lifestyles.
  • This program is not for the faint-hearted! You may need to set aside 70% of your income for some years if you want to retire decades before you turn 65.
  • As well as making financial cutbacks to maximise savings, you also need to consider ways to boost your income.

The original FIRE plan: how FIRE works

Financial Independence, Retire Early works on the basis that its advocates spend very little money during their employment years, in order to save a lump sum to facilitate their early retirement. For this to work, people need to save between 50% and 75% of their income. That's a LOT!

Vicki Robin and Joe Dominguez first coined the name in 'Your Money or Your Life', a financial guide published in the early 1990s.

The program requires followers to save until they reach an amount which is around 30 times their annual expenses (typically approximated at $1M). Once they reach this figure, they can take early retirement — provided they carefully regulate how much they withdraw during retirement, not exceeding 4% of the original sum in any year.

What's the point of Financial Independence, Retire Early?

The idea is to reach financial independence, allowing you to make choices about your life rather than being bound by debt. Once you reach financial independence, you are unlikely to become a big spender (unless you want to burn through your savings very quickly), but you do have the financial freedom to choose whether or not to work, as well as the type of work you do, and for how much of your time.

What versions of the FIRE plan exist?

Adaptations include lean FIRE (the strictest savings and most minimalist lifestyle); fat FIRE (a more comfortable lifestyle, but still making big savings); barista FIRE (incorporating casual or part-time work to supplement retirement); and coast fire (retirees who do not need to work at all).

Early retirement chart

The chart below comes from Four Pillar Freedom. It demonstrates how many years it might take you to reach financial independence based on your current yearly income and spending. It assumes that any investments you make will receive 5% interest growth per year and that you'll be withdrawing 4% of your savings each year once you retire.

As an example, if you make $40,000 per year after tax and spend $30,000 per year on expenses, it will take you 31.1 years to reach a retirement level where you can safely withdraw 4% of your investment fund.

FIRE - early retirement grid

Are there any problems with Financial Independence, Retire Early?

Yes, there are quite a few issues with FIRE.

Significantly, the FIRE plan is not an option for everyone. If you're on a low income, it may already be challenging to meet your basic living costs, let alone make enormous savings on top of that. It's a feasible way of life for someone on a six-figure salary, but could be very tough on anything less.

You also need to have a certain personality type to follow the rigid and restrictive savings plan. FIRE might suite a meticulous person who enjoys planning and doesn't prize their annual vacation.

Finally, as with many financial decisions, there is an element of unpredictability. If markets plummet after retirement, living costs might increase while interest on savings could decrease. That lump sum might not take you as far as you had hoped. Or a person's personal circumstances could change: a flooded home, a new child, a kidney transplant... Unforeseen expenses can put pressure on a lifestyle which relies on tightly restricted spending.

Top tips for starting the FIRE plan

  • Get out of debt first! There's no point saving while your debt grows bigger month on month (check out our compound interest calculator here to learn more).
  • Set up some good savings and investments. Get that compound interest working in your favor! Try out our savings calculator to see what a difference this can make.
  • Start earning extra. Overtime, a second job, raising your prices: whatever works!
  • Cut down on monthly spending (coffees, TV subscriptions, clothes, etc.)
  • Consult a professional financial advisor to ensure this is a safe plan for you to follow.

Savings goal calculator

If you want to play around with some numbers for how long it might take you to save a certain amount of money within a certain period of time, give the calculator below a try.

Your calculation result will appear here.

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Financial Independence is possible. And we’re here to help.


Being financially independent means you have choices—to work or retire, to travel, to do whatever it is you love. It’s true that living life on your own terms is possible, but it comes with this understanding:

Investment is the engine that drives Financial Independence.

Calculate your FI/RE numbers

The Basics of FI/RE

FI/RE stands for Financial Independence Retire Early. Although some may choose to retire completely, many pursue FI/RE purely for the Financial Independence (FI).

It’s pretty simple. Save as much as you can, and then invest what you save. That way, while you're working towards your FI goal, your money is also working for you. The sooner you start, the more time your investments have to grow.


Spend Less

Cut your spending—to find money so you can invest more. We’ll help you find a method that works for you.


Earn More

Increase your income—you guessed it—so you can invest for your future.


Invest Well

Investing is the cornerstone of the FI/RE approach. Money in a savings account does not grow the same way that money invested can.

Ready to invest? Fidelity can help

Fidelity offers tax-advantaged retirement accounts and taxable brokerage accounts, as well as a variety of investment options including index mutual funds (like our Zero expense ratio funds, among others), that can often be part of an FI strategy.

The accounts and products referenced throughout this experience have been chosen in the spirit of the FI/RE movement given their low cost structure and have not been selected based on your personal situation. These may or may not be the right options for you, only you can decide that.

Compare IRAs

A tax-advantaged individual retirement account

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The Fidelity Account®

A full featured, low-cost brokerage account that can meet your needs as you grow as an investor

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Fidelity Go®

An account managed by a robo advisor—an easy, affordable way to enjoy the benefits of professional money management

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Fidelity ZERO®

Index funds with 0% expense ratio and no minimums, that can go into a brokerage or retirement account

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Explore other Fidelity products Regulatory Summary of Fidelity's Services

Learn your numbers

Savings Rate

Your savings rate is the percentage of your income that you don't spend. Think of your savings rate as your speed to Financial Independence. Depending on your needs, you can go pedal to the metal or ease off the gas. You're still on the path even when you need to slow down.

FI Number

Financial Independence can mean different things to different people. Here, when we say Financial Independence, we mean the time when you can cover all of your expenses with income from your investments, rather than from a paycheck. It's the point where you can work because you want to, not necessarily because you have to. While there is no guarantee, your Years to FI describes how long it may take to get there.

See how others are pursuing Financial Independence

“I was overwhelmed by my student debt. But with this approach I was able to put it behind me.”

— Bridget

“I don’t take a salary from the business. I reinvest it into real estate. It paid for our first home down payment.”

— Jessica

“I was saving a lot and felt good about our progress, but then we had our first baby and our expenses changed. Our savings rate isn't what it used to be, but the one thing I won't give up is investing.”

— David

Spend Less

Bridget used the tactics of FIRE to clear her student debt, and that was just the start of her journey. To cut her expenses, she set up direct deposits to funnel money from her paycheck directly into a savings account, retirement, and investment accounts—leaving herself a modest “stipend” to live off of. She has all kinds of tactics for keeping expenses within her budget, such as packing low-cost lunches.

Earn More

Jessica started a small beauty business out of her kitchen and is now earning over $20,000 a month. Her day job covers her living expenses, and she puts the extra cash straight into her FI/RE fund.

Jessica’s goal is to buy five rental properties with her side hustle—and then to live off of the rental income. After she retires early, she plans to travel more often and spend more time outdoors camping and backpacking with her husband.

Invest Well

Since he started, David has been struggling to find the right balance for FI/RE. At first, he was all in: “I was gung ho about it” and always thinking about the budget. But with a new baby, a new home, and the realization that he and his wife both really care about having a nice gym membership, they’ve chosen to spend more, still focused on living within their means. As his spending fluctuates, he says, “The one thing I won’t give up is investing.”


You can use this simple calculator to calculate your FIRE, Financial Independence Retire Early, number.

Calculated Numbers

Your calculated FIRE numbers are,

Target Number (total invested)
Expected age

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The FIRE calculator gives a simple estimate of how much you need invested to retire, with an income in retirement that is sufficient to cover your expenses, and at what age you will reach that milestone. It is simple in that it does not account for tax and assumes that your income needs in retirement are fixed among many more smaller effects. The full app can be used to get a more accurate estimate.

The calculation works by assuming that your retirement needs are equal to your current expenses (after adjusting for inflation). It then assumes that there is a safe withdrawal rate that allows that percentage of your investments to be withdrawn per year for the duration of your retirement. The FIRE number, that is the amount you need invested to retire, is equal to your expenses divided by the safe withdrawal rate.

The value of the safe withdrawal rate is critical to this calculation and it is typical to use 4% (the 4% rule, or the 25 times rule). This is based on investments in the USA and for a retirement that lasts a max of 30 years, in the UK the equivalent value is 2.5% . It is key that this value represents a high probability of success, e.g. 99%.

The age at which you reach your FIRE number is calculated by assuming you invest your entire income minus your expenses each year (remember there is no tax consideration). It then assumes that the investments grow at 2.5% and that your income grows at 1.5% per year (after adjusting for inflation).

Transparency, privacy and security

All data is encrypted and securely stored in the UK. We don't share or sell data. We are regulated by the UK Financial Conduct Authority and are completely independent. We make no money from product and service recommendations. We make money from subscriptions alone.

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The Financial Independence, Retire Early (FIRE) Calculator shows you how much money you would accumulate for different annual, monthly or weekly investments given a specified annual rate of return and number of years of investments.

Here is a simple example. Suppose that you invest $10,000 at the beginning of an investment period. Assume an annual rate of return of six percent. You would accumulate the following amounts:

  • $389,927.27 by investing at the beginning of each year,
  • $4,643,511.0 by investing at the beginning of each month,
  • $20,110,959.70 by investing at the beginning of each week.

See Financial Independence, Retire Early (FIRE) by Age Calculator.

See Portfolio of Financial Independence, Retire Early (FIRE) Stocks.

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