FIRE Number
What Is Your Number?
Every financially independent person has a number — the size of the investment portfolio at which they no longer need to work to sustain their lifestyle. For most people it is somewhere between 25 and 33 times their annual expenses. The math behind it is surprisingly robust: a portfolio of that size, invested in a diversified mix of stocks and bonds, has historically generated enough return to fund withdrawals indefinitely without depleting the principal.
The harder question is how long it takes to get there — and that answer depends almost entirely on one variable: your savings rate. Not your income. Not your investment returns. The percentage of your income you save and invest each year is the single biggest determinant of when you reach financial independence, and the relationship is non-linear. Going from a 10% savings rate to a 30% savings rate does not take three times as long — it cuts your timeline by more than half. This calculator shows you exactly where you stand, how far away your number is, and what the leverage points are.
FIRE Number Calculator
Find your Financial Independence number, how long until you reach it, and whether you have already hit Coast FIRE
FIRE Number Calculator - Results Summary
Sources: Bengen (1994) - original safe withdrawal rate research. Cooley, Hubbard, Walz (1998, updated 2009) - Trinity Study portfolio survival rates. Mr. Money Mustache - savings rate to retirement years relationship. ERN (Early Retirement Now) - sequence of returns analysis.
