Investing

FIRE calculator

Plug in your situation. The math: keep adding savings, let them compound at a real (after-inflation) return, and you’re financially independent the day your portfolio reaches 25× your annual spending — the long-standing 4% rule from the Trinity Study.

You today
Return assumption
Retirement target
You’d be financially independent at age
Age 51
20.6 years from now.
FI number
$1,000,000
25× spending
You have
$50,000
5% there
Years to FI
20.6
age 51

Path to FI

$0$263k$525k$788k$1.1MFI: $1.0Myr 20.6

Solid line is your portfolio over time. Dashed line is your FI number. Where they cross is the day you can stop.

What moves the date

+$500 / mo saved
-2.5 yrs
sooner to FI
+1% real return
-1.6 yrs
sooner to FI

The first one is in your control today. The second one mostly isn’t — allocation tweaks can shift expected return modestly, but no one can promise it.

How this works

“Financial independence” here means your portfolio is large enough that a sustainable withdrawal covers your living expenses indefinitely. The standard rule of thumb — from the 1998 Trinity Study (Cooley, Hubbard, Walz) and refined since — is that withdrawing ~4% of a stock-heavy portfolio in year one and adjusting for inflation each year historically lasted 30 years in nearly every backtested window.

Real returns: the “return %” input is the return after inflation. That lets the target-spending input stay in today’s dollars and avoids a separate inflation knob. Long-term US equities have averaged 6–7% real; a globally diversified 80/20 portfolio is often modelled at 4–5% real. Pick what feels honest, not what you’d like to be true.

The 4% rule is not a guarantee. Big ERN’s extensive Safe-Withdrawal-Rate series shows that for retirement horizons longer than 30 years (e.g. someone retiring at 40), a 3.25–3.5% SWR is more defensible — try lowering the SWR input above and watch the FI number jump. Sequence-of-returns risk in the first decade of retirement dominates outcomes; nothing in this calculator models that.

For intuition, not advice. The math here assumes constant contributions, monthly compounding, and a constant real return. Real life is none of those.