Why is the FIRE number 25x my annual expenses?

25x is the reciprocal of a 4% safe withdrawal rate (1 ÷ 0.04 = 25), based on historical research (the Trinity study) into portfolios that could sustain a long retirement. Changing the withdrawal rate input changes this multiple automatically.

Does this account for inflation while I'm still saving?

No, this calculator projects your investments at your entered expected return and compares them against today's annual expenses. For a more conservative estimate, use an inflation-adjusted (real) expected return, or periodically increase your annual expenses input.

FIRE Calculator

Calculate your Financial Independence, Retire Early (FIRE) number and timeline.

How this is calculated

FIRE number = Annual expenses ÷ Withdrawal rate; years found by simulating monthly compounding growth

Assumptions used in this calculation

4% rule: The 4% safe withdrawal rate is a widely cited historical rule of thumb, not a guarantee of future portfolio performance.

About this calculator

The FIRE calculator finds your Financial Independence, Retire Early number (25× annual expenses at a 4% safe withdrawal rate by default) and how many years it will take to reach it.

Worked example

₹6,00,000/year at 4% withdrawal

Result: ₹1.5 crore FIRE number, ~12.25 years

Was this helpful?

Frequently asked questions

Popular

Retirement Calculator

Find the corpus you need to retire and how much to save monthly.

Savings Goal Calculator

Find how much you need to save monthly to reach a savings goal.

FIRE Calculator

About this calculator

Frequently asked questions

Why is the FIRE number 25x my annual expenses?

Does this account for inflation while I'm still saving?

Related calculators