FIRE Number Calculator
Divide estimated annual spending by a withdrawal-rate assumption to calculate a simple financial independence target.
These are deterministic planning assumptions. They do not model market volatility, taxes, fees, Social Security, pensions, or changes in spending.
Your inputs stay on this page and are not saved.
$48,000.00 of first-year spending at a 4% withdrawal rate.
A withdrawal rate is a planning assumption, not a guarantee that a portfolio will last for a particular period.
How the calculation works
FIRE number = annual spending ÷ planned initial withdrawal rate. Enter the rate as a percentage, such as 4%.
A withdrawal rate is an assumption, not a promise. This simple target does not model taxes, fees, market sequence, Social Security, pensions, changing spending, or retirement length.
FIRE Number Calculator FAQs
What is a FIRE number?
A FIRE number is a portfolio target based on estimated annual spending and a planned initial withdrawal rate. It is a planning shortcut rather than a guarantee of retirement income.
How is a FIRE number calculated?
Divide annual spending by the withdrawal rate written as a decimal. At $48,000 of spending and a 4% rate, $48,000 divided by 0.04 equals $1,200,000.
Is the 4% withdrawal rate guaranteed to work?
No. It came from historical portfolio research with specific assumptions. Future returns, inflation, fees, taxes, retirement length, asset allocation, and spending changes can produce different outcomes.
Should taxes be included in annual spending?
Include any taxes you expect the portfolio withdrawals to fund. Account type and jurisdiction matter, so a tax professional can help estimate the amount.
How does a lower withdrawal rate change the target?
A lower rate raises the target. At $48,000 of annual spending, 4% produces $1.2 million, while 3% produces $1.6 million.
Should Social Security or a pension reduce the FIRE number?
You can subtract reliable income from the annual spending the portfolio must cover, but timing, taxes, eligibility, and benefit changes matter. This calculator does not model them automatically.