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FIRE Savings Calculator

Work out the annual saving required to reach a financial independence target by a chosen date.

About FIRE Savings Calculator

The existing portfolio is compounded forward first, and only the remaining gap has to be funded by new savings. Dividing that gap by the annuity factor converts it into the annual contribution required. Expressing the answer as a required savings rate is what makes it actionable — an annual figure means little without the income it has to come from.

Formula

FIRE Savings

Annual saving = (target − current × (1+r)ⁿ) ÷ (((1+r)ⁿ − 1) ÷ r)

annuity factor
Future value of one unit saved each year for n years

Worked example

With the default values below, FIRE Savings Calculator returns Annual Saving Required of $22,714.29. Change any input above and every figure here is recalculated in your browser.

Inputs used

Target portfoliominimum 0
1,000,000
Current portfoliominimum 0
150,000
Years availableaccepts 1–50 years
18 years
Expected real returnaccepts 0.1–20 %
5 %
Annual net incomeminimum 0.01
70,000

Results

Annual Saving Required
$22,714.29
Monthly Saving Required
$1,892.86
Required Savings Rate
32.4%
Future Value of the Current Portfolio
$360,992.89
Verdict
Ambitious and realistic with discipline

Step by step

  1. 1Values used
  2. 2FIRE Savings
  3. 3Annual Saving Required= 22,714.29
  4. 4Monthly Saving Required= 1,892.86
  5. 5Required Savings Rate= 32.4
  6. 6Future Value of the Current Portfolio= 360,992.89
  7. 7Verdict= Ambitious and realistic with discipline

Assumptions and limits

  • The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is FIRE Savings calculated?

Annual saving = (target − current × (1+r)ⁿ) ÷ (((1+r)ⁿ − 1) ÷ r) The existing portfolio is compounded forward first, and only the remaining gap has to be funded by new savings. Dividing that gap by the annuity factor converts it into the annual contribution required.

Why does FIRE Savings matter?

Expressing the answer as a required savings rate is what makes it actionable — an annual figure means little without the income it has to come from.

What values do I need to enter?

This calculator takes 5 inputs: Target portfolio, Current portfolio, Years available, Expected real return, Annual net income. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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