What Is the FIRE Movement?

FIRE (Financial Independence, Retire Early) is a personal finance strategy based on extreme savings and disciplined investing to achieve financial independence decades before traditional retirement age. This FIRE calculator determines your FIRE number (portfolio needed to sustain your lifestyle) and projects how long it will take to get there based on your current savings rate and investment returns.

The Math Behind FIRE

FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate. The 4% rule (from the Trinity Study) means: if your portfolio equals 25× your annual expenses, you can withdraw 4% annually and historically have a 95%+ chance of the portfolio lasting 30 years. For 50+ year retirements common in early retirement, many FIRE practitioners use 3–3.5% withdrawal rates (33–40× expenses). Your savings rate is the single biggest lever — each percentage point increase in savings rate meaningfully accelerates your FIRE timeline.

Sequence of Returns Risk

The most dangerous risk in early retirement is a market crash in the first few years of withdrawals. Withdrawing from a declining portfolio locks in losses and permanently impairs long-term recovery. Mitigation strategies: Keep 1–2 years of expenses in cash; use flexible spending (spend less in down markets); maintain part-time income; consider the "rising equity glidepath" — start with more bonds and gradually increase equity allocation. Related tools: Retirement Calculator, Investment Calculator, Compound Interest Calculator.