FIRE Target
$0
FIRE Age
0
Savings Rate
0%
Net Worth Projection
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What is the Standard FIRE Calculator?
Standard FIRE (Financial Independence, Retire Early) is the point at which your investment portfolio is large enough that the passive income it generates can cover your living expenses indefinitely. It is based on the famous “4% Rule” from the Trinity Study, which states that if you withdraw 4% of your initial portfolio value annually, adjusted for inflation, you have a very high probability of never running out of money.
How to Use This Tool
- Current Net Worth: Your total invested assets.
- Annual Income & Spending: We use this to calculate your savings rate, which is the most critical factor in determining your time to FIRE.
- Withdrawal Rate: While 4% is standard, conservative investors may prefer 3.5%, while aggressive investors may use 4.5%.
Frequently Asked Questions
How accurate is the 4% rule in your country?
The 4% rule is generally considered safe for a 30-year retirement. However, early retirees (who may be retired for 40-50 years) often aim for a more conservative 3.25% to 3.5% withdrawal rate to account for longer time horizons and market volatility.
Should I include my primary residence in my Net Worth?
For FIRE calculations, you should only include income-generating assets (stocks, bonds, investment properties). Your primary residence does not generate income to pay for your groceries, so it should generally be excluded unless you plan to downsize and invest the difference.