Time to Financial Independence Calculator

FIRE Number & Time to FI

When can you stop working? Calculate your timeline to Financial Independence.

How much you spend per year.
Inflation-adjusted (Real Return).
Standard is 4%. Conservative is 3.5%.

How This Tool Works

This calculator estimates your Financial Independence (FI) Number—the amount of invested assets you need to cover your expenses indefinitely without working.

  • The Rule of 25: Based on the safe withdrawal rate (SWR), your FI number is typically 25 times your annual expenses (assuming a 4% SWR).
  • Logic: We project the growth of your current investments plus monthly savings until they cross your target FI number.
  • Assumptions: We use an "inflation-adjusted" or "Real" return rate (e.g., 7%) to ensure your future dollars are quoted in today's purchasing power.

How to Use (Steps)

  1. Annual Expenses: Enter what it costs to live your desired lifestyle each year.
  2. Current Assets: Your current portfolio balance (401k, IRAs, Brokerage).
  3. Annual Savings: How much new money you invest every 12 months.
  4. Expected Return: Use 7-8% for an all-equity portfolio (adjusted for inflation).

Example Calculation

Scenario: $50,000 Annual Spending.

• FIRE Number: $50,000 × 25 = $1,250,000.
• Current Assets: $100,000.
• Annual Savings: $30,000.
• Timeline: At 7% returns, you hit FI in approx. 17.5 Years.

Why This Tool Is Accurate

Most retirement tools use "nominal" returns, making you feel wealthy in 30 years but ignoring that a gallon of milk might cost $15. By using real, inflation-adjusted returns, this calculator keeps your goal grounded in current costs.

Limitations & Disclaimer

Investment returns are never linear. "Sequence of Returns Risk" (a market crash right before you retire) can disrupt even the best math. Disclaimer: This is for educational planning only; consult a CFP for personalized advice.

Frequently Asked Questions

What is the "Rule of 25"?

It is the inverse of the 4% Safe Withdrawal Rate. If you want to withdraw 4% of your portfolio annually, you need a portfolio that is 25 times your annual spending (1 / 0.04 = 25).

Is a 4% withdrawal rate still safe?

The Trinity Study found that 4% succeeded in 95%+ of historical 30-year periods. However, for a 50-year retirement, many "FIRE" enthusiasts aim for a more conservative 3.25% to 3.5%.

Should I include my house in my FIRE Number?

Generally, no. Your FIRE number should only include liquid, invested assets that generate income (stocks, bonds, rentals). Your primary home is where you live, not what you live off of, unless you plan to downsize and invest the difference.