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FIRE number calculator
Your FIRE number is the size of investment pot that lets the returns cover your spending for good, the point the financial independence and early retirement movement calls being financially independent.
FIRE stands for financial independence, retire early: the point where investment income can cover your spending for good.
Enter what you expect to spend in a year, choose a safe withdrawal rate, and add what you have invested so far, and this tool returns the target, how much is still to go, how far along you are, and the multiple of annual spending the target represents. The maths behind it is the well-known 4 percent rule: if you withdraw 4 percent of a pot in the first year and adjust for inflation after that, history suggests it should last a long retirement, which means the pot needs to be 25 times your annual spending. Choose a more cautious 3 or 3.5 percent and the multiple rises to around 29 or 33 times, building in a margin for a long horizon or a poor first decade of returns; choose a bolder 5 percent and it falls to 20 times. The number is a planning guide rather than a promise, since the 4 percent rule comes from past US market data and real returns, inflation and tax all vary, but it gives a clear, motivating target to aim a savings plan at.
How it works
- Enter the amount you expect to spend in a typical year once you stop working.
- Pick a safe withdrawal rate; 4 percent is the classic figure, lower is more cautious.
- Add what you already hold in invested savings and pensions, if anything.
- The tool divides your spending by the withdrawal rate to set the target pot.
- It subtracts what you have to show the gap and how far along you are as a percentage.
FIRE number = annual spending / withdrawal rate; at 4 percent this is annual spending x 25
The calculator divides your expected annual spending by the safe withdrawal rate expressed as a fraction. A 4 percent rate is 0.04, so the target is spending divided by 0.04, the same as multiplying by 25. A lower rate is a smaller fraction, so dividing by it gives a larger target and a bigger safety margin; a higher rate does the reverse. Progress is your current pot divided by the target, and the gap is the target minus what you hold.
- spending
- expected annual spending in retirement, in today money
- w
- safe withdrawal rate as a fraction, for example 0.04
- target
- the FIRE number, spending divided by w
- progress
- current pot divided by the target, as a percentage
How the withdrawal rate sets the multiple
| 5% withdrawal | 20x spending | smallest pot, least margin for bad years |
| 4% withdrawal | 25x spending | the classic rule of thumb |
| 3.5% withdrawal | about 29x | extra caution for a long retirement |
| 3% withdrawal | about 33x | the most conservative common choice |
Worked example
You expect to spend 40,000 a year, use the 4 percent rule, and have 100,000 invested: your FIRE number is 1,000,000, which is 25 times your spending. You have 100,000, so you are 10 percent of the way there with 900,000 still to invest. Switch to a cautious 3.5 percent and the target rises to about 1,143,000; choose a bolder 5 percent and it drops to 800,000. The withdrawal rate you trust moves the goalposts as much as your spending does.
Key facts
- The 4 percent rule turns into a target of 25 times your annual spending.
- A lower withdrawal rate means a bigger pot but more protection against poor early returns.
- Cutting planned spending lowers the target directly, so spending less does double duty.
- The rule comes from US historical data and is a planning guide, not a promise of safety.
Tips
- Build your spending figure from a real budget, including irregular costs like car replacement, so the target is honest.
- If retiring very early, lean toward a 3 to 3.5 percent rate to cover a longer horizon.
- Keep a cash buffer of a year or two of spending so you need not sell investments in a downturn.
- Revisit the number when your planned lifestyle changes; the spending input moves the target most.
Frequently asked questions
What is the 4 percent rule?+
It is a guideline from US research suggesting that withdrawing 4 percent of a portfolio in the first year, then adjusting that amount for inflation, has historically lasted at least 30 years. Working backwards, it means a pot of 25 times your annual spending. It is a rule of thumb, not a guarantee.
Should I use 4 percent or something lower?+
A lower rate such as 3 or 3.5 percent builds in more safety for a longer retirement or a weak early run of returns, at the cost of a bigger target. Many people retiring very early lean toward the cautious end; the right choice depends on your horizon and how much flexibility you have to cut spending.
Does the FIRE number include my state pension?+
No. The target here is the pot your own investments must reach. A state or defined-benefit pension that starts later reduces what your pot has to cover from that point, so you can treat it as lowering your spending need once it begins rather than as part of the pot.
What spending figure should I use?+
Use the annual amount you expect to spend in the life you are aiming for, not your current budget if that will change. Include housing, bills, food, travel and a buffer; people often forget irregular costs such as car replacement and home repairs.
Does this account for inflation and tax?+
The 4 percent rule already assumes you raise withdrawals with inflation, so use spending in today money. It does not account for tax on withdrawals, which varies by country and account type, so build a margin for tax into your spending figure.
Is reaching the number a guarantee I can retire?+
No. It is a strong planning marker, but real returns vary, early bad years hurt most, and life changes. Treat hitting the number as the point to plan seriously, ideally with a cash buffer and the flexibility to trim spending in a downturn.
Things to watch
- The 4 percent rule is based on past markets and assumes a 30-year horizon; a much longer retirement needs a lower rate.
- The target ignores tax on withdrawals, which varies widely, so add a margin for it to your spending.
- This is a planning estimate, not financial advice; sequence-of-returns risk means hitting the number is the start of careful planning, not the end.
Last updated: 2026
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with an official source before making decisions.
Built and maintained by Vikas Dulgunde. Editorial standards.