Calculate the portfolio multiple of spending needed for financial independence.
Dropping the withdrawal rate from 4% to 3% raises the multiple from 25 to 33 times spending, which is a third more capital. The inflation-adjusted figure shows the same target expressed in the money of the year you actually retire. Small changes in the assumed withdrawal rate move the target enormously, which is why the multiple matters more than any projection of returns.
FIRE Number
FIRE number = annual expenses × (100 ÷ withdrawal rate)
FIRE number = annual expenses × (100 ÷ withdrawal rate) Dropping the withdrawal rate from 4% to 3% raises the multiple from 25 to 33 times spending, which is a third more capital. The inflation-adjusted figure shows the same target expressed in the money of the year you actually retire.
Small changes in the assumed withdrawal rate move the target enormously, which is why the multiple matters more than any projection of returns.
This calculator takes 4 inputs: Annual spending, Safe withdrawal rate, Expected inflation, Years until you stop working. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.