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FIRE Calculator

"Find your Financial Independence number and project your path to early retirement."

Updated: March 7, 2026•Source: CRA / Service Canada

The 4% Rule & Beyond

Financial Independence (FIRE) is the point where your investments generate enough income to cover your expenses forever. The most common math is the '25x Rule': you need 25 times your annual spending to retire safely.

📝 How to use

  • 1Enter your current annual spending (this determines the goal).
  • 2Input your current savings and how much you add each year.
  • 3Adjust the "Withdrawal Rate" (usually 4%) to see how it changes your target.

🎯 Real-World Scenarios

Lean vs. Fat FIRE

Lean FIRE is retiring on a bare-bones budget. Fat FIRE is retiring with a more luxurious lifestyle. Both use the same math.

The Power of Savings Rate

Your time to freedom is driven more by how much you SAVE than what you earn. Every $1 less spent is $25 less needed in your nest egg.

Frequently Asked Questions

What is the 4% Rule?▼
The 4% rule suggests you can safely withdraw 4% of your investment portfolio in your first year of retirement, and then adjust that amount for inflation each year, without running out of money for at least 30 years.
What is Lean FIRE vs Fat FIRE?▼
Lean FIRE typically means retiring with annual spending of $40k or less. Fat FIRE is retiring with $100k+ in annual spending. The math is the same, but the portfolio size required is vastly different.
How do I analyze my FIRE number?▼
The simplest way is to multiply your annual expenses by 25. For example, if you spend $40,000/year, you need $1,000,000 invested ($40,000 x 25).
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Your FIRE Number

$1,500,000

Time to goal: 16 Years

What This Calculator Solves

This engine helps you determine your 'FIRE Number'—the total amount of invested assets you need to be able to live off your portfolio indefinitely. It uses the principles of the 'Trinity Study' and the '4% Rule' to show how your current net worth, savings rate, and investment returns come together to determine your date of financial freedom. It visualizes the crossover point where your work becomes optional.

The 4% Rule: Still The Gold Standard?

The 4% Rule originated from the 1994 'Trinity Study,' which found that a retiree could withdraw 4% of their initial portfolio (adjusted for inflation each year) and have a 95% chance of the money lasting for 30 years. But is it right for you?

The 'Early' Problem: If you are retiring at 40 (FIRE), you need your money to last 50-60 years, not 30. Many experts now suggest a 3.25% or 3.5% withdrawal rate for early retirees to account for the longer timeline and current low-yield environments.

The 'Flex' Strategy: The biggest flaw in the 4% rule is that it assumes you never change your spending. In reality, most 'FIRE' practitioners use Variable Percentage Withdrawals. By cutting back on travel or luxuries during market downturns, you can significantly increase your 'Success Rate' and potentially retire with a smaller 'FIRE Number'.

Methodology & Data Sources

Our engine determines your FIRE target by dividing your 'Annual Spending' by your 'Withdrawal Rate'. We then run a year-by-year simulation, adding your 'Annual Savings' and applying your 'Investment Return' to the balance. The projection ends when you reach 150% of your FIRE target or 50 years, whichever comes first.

* Calculations are for educational purposes only.

Frequently Asked Questions

What is the 4% Rule?
The 4% rule suggests you can safely withdraw 4% of your investment portfolio in your first year of retirement, and then adjust that amount for inflation each year, without running out of money for at least 30 years.
What is Lean FIRE vs Fat FIRE?
Lean FIRE typically means retiring with annual spending of $40k or less. Fat FIRE is retiring with $100k+ in annual spending. The math is the same, but the portfolio size required is vastly different.
How do I analyze my FIRE number?
The simplest way is to multiply your annual expenses by 25. For example, if you spend $40,000/year, you need $1,000,000 invested ($40,000 x 25).
Is the 4% rule still safe today?
The 4% rule was based on historical US data for a 30-year retirement. Some modern researchers suggest a more conservative 3% or 3.5% rate for longer retirements (40-50 years) or during periods of high valuation and low interest rates.
What is 'Coast FIRE'?
Coast FIRE is when you have already saved enough that, even if you never added another dollar, your portfolio would grow to your target FIRE number by the time you reach traditional retirement age. This allows you to 'coast' by only working enough to cover your current living expenses.
Should I include my home in my FIRE number?
Generally, no. Your FIRE number should only include 'investable assets' that produce income or can be sold to pay for groceries. Unless you plan to sell your home and downsize (or rent), the equity in your primary residence doesn't help pay your monthly bills.
How does inflation affect my FIRE number?
The 4% rule inherently accounts for inflation (you withdraw 4% in year one, then adjust that *dollar amount* by the CPI each year). However, your 'spending' input should be in today's dollars, and your 'investment return' should be considered as a 'real' return (after inflation).