FIRE Calculator — Financial Independence & Early Retirement

Your FIRE number is the total investment portfolio you need to live off indefinitely without working. The formula is: Annual Expenses × (100 ÷ withdrawal rate). Using the standard 4% rule: Annual Expenses × 25. Example: £30,000/year expenses × 25 = £750,000 FIRE number. Once you have this portfolio, you withdraw 4% in year one and adjust for inflation annually — historical data shows this lasts 30+ years.

The 4% rule (from the 1994 Trinity Study) shows that a diversified portfolio has historically sustained a 4% annual withdrawal for 30 years with 95%+ success rate. For retirements longer than 30 years (early retirees), 3.5% (28.6× multiplier) is more conservative. For India, 3.3% (30× multiplier) is recommended due to higher inflation (5–7%) and no universal healthcare.

The UK State Pension (£11,502/year from age 67 for 2025-26) is a guaranteed income source that permanently reduces how much your portfolio must provide. If your expenses are £30,000/year and State Pension covers £11,502, your portfolio only needs to fund £18,498/year — reducing your FIRE number from £750,000 to approximately £550,000. Enter your State Pension forecast in the field above.

Savings rate determines years to FIRE more than any other factor. Approximate years to FIRE from zero: 10% savings rate → ~40 years, 25% → ~32 years, 50% → ~17 years, 75% → ~7 years. High earners who maintain low lifestyle costs reach FIRE in their 30s by saving 60–70% of income. Every percentage point you save both reduces expenses (lowering the FIRE number) and increases saving speed.

The FIRE movement in India uses a 30× multiplier (3.3% withdrawal rate) rather than 25× (4% rule) for three reasons: (1) India's average inflation is 5–7% vs 2–3% in Western markets, (2) there is no universal healthcare — medical costs are a major retirement risk, (3) many Indians support parents and fund children's education from retirement savings. Indian FIRE number = Annual expenses × 30.

Lean FIRE: retiring on minimum expenses — under $30,000/year (US) or £20,000/year (UK) or ₹6 lakh/year (India). Demands frugal living but requires the smallest portfolio. Regular FIRE: comfortable middle-class retirement — $50,000–80,000/year or £30,000–50,000/year. The most common FIRE goal. Fat FIRE: luxury retirement — $100,000+/year or £70,000+/year. Requires a much larger portfolio.

Australian FIRE planning has two phases: (1) Early retirement (before age 60): you need an accessible portfolio (ETFs, shares, cash) to cover living expenses — super cannot be accessed until preservation age 60. (2) From age 60: super kicks in, reducing portfolio draw-down. Many Australians target a smaller accessible FIRE number knowing super will supplement from 60.

By country: USA — max 401(k) for employer match, then Roth IRA for tax-free growth, then taxable brokerage. UK — max ISA (£20,000/year, tax-free) for accessible FIRE savings; SIPP for post-57 pension. Australia — super for age 60+ income; ETFs and shares for pre-60 access. India — max PPF (₹1.5L/year, tax-free) and NPS for retirement; ELSS for FIRE savings. Tax-advantaged accounts first in every country.