Financial Freedom Calculator
Calculate your FIRE number and years to financial independence
Frequently Asked Questions
FIRE number = Annual expenses ÷ Withdrawal rate. With the common 4% withdrawal rate, your FIRE number is 25x your annual expenses — the idea being a portfolio of that size can sustain that withdrawal rate indefinitely based on historical market returns.
The 4% rule comes from the Trinity Study, which found that withdrawing 4% of a stock/bond portfolio in the first year, then adjusting for inflation each year after, had a high historical success rate over 30-year retirements. Some planners now suggest 3-3.5% for extra safety over very long (40+ year) early-retirement horizons.
Your expenses will also rise with inflation over time, so growing your capital at the nominal return alone would understate how long it really takes — using the return net of inflation keeps everything in today's purchasing power terms.
If your current capital already covers your FIRE number, you're financially independent by this calculation — years to FIRE will show 0. Whether you actually stop working is a separate personal decision (many people keep working past their FIRE number for other reasons).