Calculate your path to Financial Independence, Retire Early
Plan your journey to financial freedom with our free calculator. Visualize your path to early retirement and see exactly when you could achieve financial independence.
All values shown in today's purchasing power. Your real return (nominal - inflation) is used for projections.
Stock market average is approximately 11% nominal
Historical average is approximately 2-3%
The 4% rule is the FIRE standard
Financial Independence, Retire Early
Set Your Goal
Enter a target savings amount or monthly income to see your journey.
FIRE stands for Financial Independence, Retire Early. It's a lifestyle movement focused on achieving financial freedom through aggressive saving, frugal living, and smart investing, allowing you to retire decades earlier than the traditional retirement age.
The core principle is simple: by saving a significant portion of your income (typically 50-70%) and investing it wisely, you can accumulate enough wealth to live off investment returns indefinitely.
The 4% rule is a guideline suggesting that you can safely withdraw 4% of your portfolio annually in retirement without running out of money. This means your FIRE number is roughly 25 times your annual expenses.
For example, if you need $40,000 per year, your FIRE target would be $1,000,000 (40,000 x 25).
The FIRE movement has evolved into several variations to accommodate different lifestyles and goals:
Retiring with minimal expenses, typically under $40,000/year. Requires strict budgeting but achievable faster.
The standard approach with comfortable but not lavish spending, typically $40,000-$100,000/year.
Retiring with a higher standard of living, typically $100,000+/year. Takes longer to achieve but provides more financial cushion.
Having enough invested to cover most expenses while working a part-time job for supplemental income and benefits like health insurance.
Having enough invested that compound growth will fund traditional retirement, allowing you to work just enough to cover current expenses without additional savings.
Follow these simple steps to plan your FIRE journey:
Enter your current net worth (total assets minus all debts)
Set your monthly savings contribution amount
Choose your target - either a total savings amount or desired monthly passive income
Adjust the expected return rate based on your investment strategy (historically 7-11% for stock market)
Review your projected timeline and celebrate your milestones along the way!
Here are proven strategies to accelerate your journey to financial independence:
Track every expense to understand your true spending patterns
Maximize your savings rate - even small increases compound significantly over time
Invest in low-cost index funds for broad market diversification
Consider multiple income streams to accelerate your wealth building
Build a 3-6 month emergency fund before aggressive investing
Avoid lifestyle inflation as your income grows
Automate your investments to remove emotional decision-making
This calculator provides estimates based on the assumptions you enter. Actual investment returns vary and past performance does not guarantee future results. Consider consulting a financial advisor for personalized advice.
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