FIRE Calculator & Benchmark
Plan your Financial Independence, Retire Early (FIRE) journey. Calculate savings rate, compound interest growth, and retirement age based on the 4% rule. Compare with global users.
How to use
The Principle: Why 25x?
The FIRE (Financial Independence, Retire Early) movement is built on the famous "4% Rule". Originating from the Trinity Study, this rule suggests that if you invest in a balanced portfolio and withdraw 4% of your initial portfolio value annually (adjusted for inflation), your money has a 95%+ chance of lasting at least 30 years.
The Formula: $$ \text{Target} = \frac{\text{Annual Expenses}}{4%} = \text{Expenses} \times 25 $$
This means once you save 25 times your annual expenses, you are theoretically financially free.
How to use this calculator?
1. Calculate Your "Speed" (Savings Rate)
Your Income and Expenses determine your Savings Rate.
- Savings Rate is the only accelerator for FIRE: It's not about how much you make, but how much you keep.
- If you save 50% of your income, you can retire in roughly 17 years, assuming average returns.
2. Compound Growth (Annual Return)
- This is how fast your money makes money.
- Recommendation: Set this between 5% ~ 8% (a conservative estimate for long-term index fund investing after inflation).
3. Visualize the Finish Line
- Green Curve: Your projected net worth growing over time.
- Orange Line: Your FIRE Target (25x expenses).
- Crossing Point: The age where the green curve crosses the orange line is your Financial Freedom Age.
4. Global Benchmark
- After calculating, click "Save & See Rank" to compare your savings rate with other FIRE seekers worldwide.