🔥 About the FIRE Calculator (Financial Independence / Retire Early)

The fire calculator (financial independence / retire early) is an essential tool for anyone pursuing Financial Independence and early retirement. Whether you're just starting your FIRE journey or fine-tuning your strategy, this calculator provides the insights you need to make informed decisions.

🔥 FIRE Calculator Features

📊 Asset Allocation Modeling

Customize your portfolio allocation between stocks, bonds, and cash with different expected returns for each asset class.

📈 Visual Growth Projections

See your net worth growth over time with an interactive chart that shows when you'll reach your FIRE number.

🛡️ Safe Withdrawal Rate Analysis

Adjust the safe withdrawal rate to see how it affects your FIRE number and timeline, with 4% as the default.

💰 Savings Rate Optimization

Understand how your current savings rate impacts your FIRE timeline and get recommendations for improvement.

💡 When to Use This Calculator

  • 🎯 Planning your path to financial independence
  • 📊 Optimizing your asset allocation for FIRE
  • 💰 Determining how much you need to save each month
  • 📈 Comparing different FIRE strategies (Lean, Fat, Barista)
  • 🔄 Adjusting your timeline based on lifestyle changes

📌 Tips for Better Results

  • Use realistic expected returns (7-10% for stocks, 3-5% for bonds)
  • Be conservative with your safe withdrawal rate (3.5-4%)
  • Account for inflation in your planning (2-3% annually)
  • Consider your risk tolerance when setting asset allocation
  • Review and adjust your plan annually as circumstances change

🧮 Calculation Methodology

Our FIRE calculator uses proven financial formulas and assumptions based on historical market data and academic research.

📊 Key Formulas

  • FIRE Number: Annual Spending ÷ Safe Withdrawal Rate
  • Weighted Return: (Stocks% × Stock Return) + (Bonds% × Bond Return) + (Cash% × Cash Return)
  • Real Return: Weighted Return - Inflation Rate
  • Savings Rate: (Income - Spending) ÷ Income × 100

🔬 Research Foundation

  • Trinity Study: The 4% rule is based on this landmark study showing 4% withdrawal rates had 100% success over 30-year periods
  • Historical Returns: Stock returns based on S&P 500 historical average of ~10% nominal, ~7% real
  • Bond Returns: Based on historical government and corporate bond performance
  • Inflation: Uses long-term historical average of ~3% annually