Work out the portfolio and time needed to reach financial independence at your savings rate.
The FIRE number is simply annual spending divided by the withdrawal rate, so a 4% rate means 25 times spending. The time to reach it comes from solving the future-value equation for the existing portfolio plus an annual savings annuity. Time to independence depends far more on the savings rate than on the return achieved, because savings rate sets both the target and the speed of approach.
FIRE
FIRE number = annual expenses ÷ safe withdrawal rate; years solve FV of portfolio plus savings
FIRE number = annual expenses ÷ safe withdrawal rate; years solve FV of portfolio plus savings The FIRE number is simply annual spending divided by the withdrawal rate, so a 4% rate means 25 times spending. The time to reach it comes from solving the future-value equation for the existing portfolio plus an annual savings annuity.
Time to independence depends far more on the savings rate than on the return achieved, because savings rate sets both the target and the speed of approach.
This calculator takes 5 inputs: Annual spending in retirement, Safe withdrawal rate, Current invested portfolio, Amount saved each year, Expected real return. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.