FIRE Calculator

While you explore, your savings cover the gap between what you spend and what you earn from freelancing, consulting or odd jobs. After that, the work you find pays for most of your life, and a smaller pile covers the rest.

1. 1NowWorking and investing every year until you have enough to leave.
2. 2Your pathless yearsNo full-time job. Trying to make income: freelancing, consulting, odd jobs, small projects. Not investing; your savings cover the gap between what you spend and what you make.
3. 3AfterEarning from the work you found. What’s left of your savings stays invested and covers the rest.

Example. Say you spend $50,000 a year and expect to make $20,000 a year freelancing while you explore. Your savings cover $30,000 a year for 4 years. If the work you find then brings in $40,000, your savings only need to cover $10,000 a year, which takes $250,000 invested at 4%. You’d need about $312,000 when you leave, a quarter of the $1.25M for full FIRE.

From then on you only need to earn what you spend, which frees you to take lower-paid, part-time or more meaningful work.

1. 1NowWorking and investing hard.
2. 2CoastingStill working, but only enough to pay your bills. Not investing anything more; your savings grow untouched.
3. 3Your chosen ageFull FIRE. Your savings pay for everything.

Example. Say you’re 35, spend $50,000 a year and want full FIRE by 60, which takes $1.25M. At 5% growth, $369,000 invested today becomes $1.25M by 60 on its own. Once you have it, you could take a lower-paid job that just covers your $50,000 a year.

That income pays for part of your life, so your savings only need to cover the rest, and your number is much smaller.

1. 1Until you get thereWorking full-time and investing every year.
2. 2AfterA part-time or low-stress job brings in some income. Not investing more; your savings pay the rest.

Example. Say you spend $50,000 a year and a part-time job brings in $20,000. Your savings only cover $30,000 a year, so you need $30,000 ÷ 4% = $750,000 instead of $1.25M. Starting from $150,000 and investing $25,000 a year, that takes about 13 years instead of 20.

It’s the smallest of the classic FIRE numbers, so you get there fastest, but it leaves the least room for surprises or for spending more later.

1. 1Until you get thereWorking and investing every year.
2. 2AfterNo job needed. Your savings pay for everything, on a tight budget. You take out about 4% a year.

Example. Say you can live on $30,000 a year. $30,000 ÷ 4% = $750,000. Starting from $150,000 and investing $25,000 a year, that takes about 13 years.

Your FIRE number works out to about 25 times what you spend in a year. Work becomes fully optional.

1. 1Until you get thereWorking and investing every year.
2. 2AfterWork is optional. Your savings pay for everything at today’s level of spending. You take out about 4% a year.

Example. Say you spend $50,000 a year. $50,000 ÷ 4% = $1.25M. You take out $50,000 a year and, over time, the rest grows enough to keep it going. Starting from $150,000 and investing $25,000 a year, that takes about 20 years.

It’s the biggest number and the longest road, which is why many people aim for a smaller goal first.

1. 1Until you get thereWorking and investing every year, usually for longer or at a higher income.
2. 2AfterWork is optional. Your savings pay for a bigger life, with room for travel, family and bad years.

Example. Say you want to spend $100,000 a year. $100,000 ÷ 4% = $2.5M. Starting from $150,000 and investing $25,000 a year, that takes about 31 years, so most people on this path earn and invest much more.