FIRE stands for Financial Independence, Retire Early: a movement built on saving and investing a large share of your income so you can retire far earlier than a traditional plan allows. It's not about stopping work — it's about making work optional.
There are five types of FIRE in common use. All of them rest on the same engine, a portfolio you can live from, and they differ in two things: how much you plan to spend each year, and how much paid work stays in the picture. Lean, Regular and Fat FIRE are the same 25× rule at three spending levels; Coast and Barista FIRE change when you stop saving or stop working full-time rather than how much you need in the end.
There's no one-size-fits-all approach to financial independence. Choose the path that fits your lifestyle.
The standard approach: save 25× your annual expenses and withdraw 4% a year. At $40,000–$100,000 of spending that is $1M–$2.5M, depending on lifestyle.
25x annual expensesAchieve financial independence with a minimalist lifestyle. Lower expenses mean a smaller target number, but requires ongoing frugality.
Under $40K/year spendingFinancial independence without lifestyle compromises. Higher target number but more comfortable post-retirement life with travel, dining, and hobbies.
Over $100K/year spendingSave aggressively early, then let compound growth do the rest. Once you hit your Coast FIRE number, you only need to cover current expenses — no more saving required.
Stop saving, let investments growTry the Coast FIRE calculatorQuit your high-stress career and work a low-pressure part-time job to cover basic expenses while your investments grow. Named after the idea of working at a coffee shop.
Part-time income + investmentsTry the Barista FIRE calculator| Type | Annual spending | FIRE number | Work after you reach it | Who it suits | Calculate it |
|---|---|---|---|---|---|
| Lean FIREFIRE planner | Under $40,000 | Under $1,000,000 | Optional | Low fixed costs, a small household, happy with less | FIRE planner |
| Regular FIREFIRE planner | $40,000–$100,000 | $1,000,000–$2,500,000 | Optional | Most households that keep their current lifestyle | FIRE planner |
| Fat FIREFIRE planner | Over $100,000 | Over $2,500,000 | Optional | Travel, a bigger home, no trade-offs | FIRE planner |
| Coast FIRECoast FIRE calculator | Covered by your job for now | Reached by compounding alone by your retirement age | Any job that covers today's bills; no more saving | Early savers in their 20s and 30s | Coast FIRE calculator |
| Barista FIREBarista FIRE calculator | Part portfolio, part paycheck | 12–15× annual spending, with part-time pay covering the rest | Part-time, often for the health insurance | Leaving a stressful career years before full FIRE | Barista FIRE calculator |
Your type is set by your spending, not your income: multiply your real annual expenses by 25 and see which row the result lands in. Decades from retirement age? Check Coast first. If the full number is out of reach but a part-time job is not, look at Barista.
Your FIRE number is the amount you need invested to live off passive income indefinitely.
Track your spending for 3-6 months to find your true annual expenses. Include housing, food, insurance, transportation, and discretionary spending.
The 4% rule says you can safely withdraw 4% of your portfolio annually. So you need 25x your annual expenses. If you spend $40,000/year, your FIRE number is $1,000,000.
Consider inflation, healthcare costs, taxes, and whether you'll have other income sources like Social Security or rental properties.
A good FIRE calculator considers your current savings, monthly contributions, expected returns, and inflation to project when you'll reach your number.
Want the number alone, at the withdrawal rate you pick? The FIRE number calculator works it out from a year of spending, with lean and fat versions beside it.
The FIRE journey can be broken down into four key phases.
You can't optimize what you don't measure. Start by tracking every expense to understand where your money goes. Many people discover they're spending 20-30% more than they thought.
The savings rate is the single most important factor in reaching FIRE. A 50% savings rate means you can retire in ~17 years. A 70% rate cuts that to ~8.5 years.
Put your savings to work in low-cost index funds and ETFs. Compound growth is the engine that makes FIRE possible. Even small monthly contributions add up dramatically over time.
Once your investment portfolio generates enough passive income to cover your expenses, work becomes optional. That's financial independence.
Let's clear up the most common myths about the FIRE movement.
“You need to earn a high salary”
FIRE is about your savings rate, not your income. Someone earning $50K saving 60% will reach FIRE before someone earning $200K saving 10%.
“You have to live a miserable, frugal life”
FIRE is about intentional spending — cutting waste, not joy. Many FIRE practitioners spend generously on things they value while cutting expenses that don't matter to them.
“You'll never work again”
Most people who reach FIRE continue working — they just choose work they find meaningful. FIRE gives you the freedom to say no to work you don't enjoy.
“The 4% rule is too risky”
The 4% rule is based on the Trinity Study covering 30-year periods including the Great Depression. With flexibility to reduce spending in down markets, success rates exceed 95%.
Calculate your path to financial independence with Coast FIRE, Barista FIRE, and custom withdrawal strategies.
Try the FIRE CalculatorProject net worth and cash flow across a whole life — add the car, the career break, the child and the pension, and see the year each one lands.
Open the Life PlannerFind the amount you need today so compound interest carries you to FIRE — no more contributions needed.
Find your Coast FIRE numberFind the portfolio size that lets you downshift to part-time work, with healthcare bridge costs built in.
Try Free Barista FIRE CalculatorSee exactly how compounding grows your money. Side-by-side scenarios, expense-ratio drag, and real (inflation-adjusted) returns built in.
Open the calculatorCheck ETF overlap across your whole portfolio, see look-through holdings and sector exposure, and stress test against historical crises.
Check your ETF overlapUse our FIRE calculator to see when you can reach financial independence — free, no signup. Track your progress with our budgeting and net worth tools.
Try the FIRE Calculator