Financial Independence, Retire Early (F.I.R.E.)
FIRE is not just about quitting your job; it is about reaching the "Crossover Point." This is the specific moment when the passive income generated by your investment portfolio exceeds your annual living expenses.
Once you cross this line, employment becomes optional. You gain the freedom to work on projects you love, travel, or simply reclaim your time, without the pressure of a paycheck.
This calculator uses your current savings rate and expense data to project exactly when you will hit that crossover point based on historical market performance.
The "Rule of 25" Explained
The quickest way to estimate your target is the "Rule of 25." Take your annual expenses and multiply by 25.
$40,000 Expenses × 25 = $1,000,000 Portfolio
This portfolio size supports a 4% annual withdrawal.
This math is derived from the famous Trinity Study, which showed that a balanced portfolio could survive a 4% withdrawal rate for 30 years in 95% of historical market scenarios.
The Math of Early Retirement
Most people focus on "Investment Returns," but your Savings Rate is actually the most important factor. The more you save, the less you need to live on, and the faster you accrue your nest egg.
| Savings Rate | Years to FIRE* | The "Why" |
|---|---|---|
| 10% | 51 Years | Living on 90% of income. |
| 25% | 32 Years | Standard retirement pace. |
| 50% | 17 Years | The "FIRE" Sweet Spot. |
| 75% | 7 Years | Extreme frugality. |
Which FIRE Are You?
LeanFIRE
Expenses < $40k/yr. For minimalists who can live comfortably on a tight budget. Requires a smaller portfolio (approx. $1M).
FatFIRE
Expenses > $100k/yr. For those who want a lavish lifestyle, travel, and luxury. Requires a large portfolio ($2.5M+).
BaristaFIRE
You save enough to cover "survival" expenses, then work a low-stress, part-time job to cover "fun" money and health insurance.