Tool 01 · FIRE calculator
When can you stop working?
Financial independence is the moment your investments could cover your life without a paycheck. Move the sliders and watch the year it arrives.
Reached at age 47 · 2043
What your life costs per year once you stop.
Long-run stock market average is ~7% after inflation.
The classic rule is 4% — i.e. 25× your yearly spending.
Pro features. Model raises and fees, read auto-insights, see every year, compare saving levels, and export.
A deeper FIRE plan
Refine the model
Bump your monthly saving by this much annually as your pay grows.
Fund/platform fees drag on your real return every year.
Year by year
Compare saving levels
| Saved / month | Free at age | Years to go |
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How the FIRE calculator works
FIRE stands for Financial Independence, Retire Early — the point where your investments are large enough to cover your living costs indefinitely, so paid work becomes a choice rather than a necessity. It isn’t about never working again; it’s about buying back your time. The number that unlocks it is your FI number, and it’s set by just two things: how much you spend each year, and the withdrawal rate you’re comfortable drawing from your portfolio.
The maths is refreshingly simple. Divide your annual spending by your withdrawal rate and you have the pot you need. At the classic 4% rate that means 25× your yearly spending — so a €30,000-a-year lifestyle needs roughly €750,000. Spend less, or accept a slightly higher withdrawal rate, and the target falls; want more safety margin and the target rises. The single biggest lever on your number isn’t your income — it’s the cost of the life you actually want to fund.
From there, the calculator projects your current investments forward month by month, adding your regular contributions and compounding everything at the return you choose. The year your balance first crosses the FI line is the year work becomes optional. Because we treat the return as a real (after-inflation) figure, both your number and your freedom date are expressed in today’s money — no mental gymnastics required.
A worked example
Age 30 · €20,000 invested · saving €1,000/month · 7% real return · €30,000 spending · 4% withdrawal
The FI number is €30,000 ÷ 4% = €750,000. Growing the starting pot and monthly savings at 7% after inflation, the balance crosses that line in the early 50s. Notably, well over half of the final pot is growth the investor never deposited — a vivid illustration of why starting early matters more than starting big.
Things to keep in mind
- Sequence-of-returns risk. A market crash in your first few retirement years is far more damaging than the same crash later, because you’re withdrawing while the portfolio is down. Many early retirees keep a cash buffer or stay flexible on spending for this reason.
- The 4% rule is a guideline, not a guarantee. It came from historical US data over 30-year retirements. For a 40- or 50-year early retirement, a rate closer to 3–3.5% is safer.
- Spending drives everything. Trimming annual spending cuts your target twice over — you need less, and you save more to get there. It’s the most powerful dial on this page.
- Taxes and one-offs aren’t modelled. Real life has tax on withdrawals, occasional big expenses and changing costs. Use the result as a target to aim at, then refine.
Frequently asked questions
What is the 4% rule?
It’s a rule of thumb from the "Trinity Study" suggesting you can withdraw about 4% of your portfolio in year one of retirement, then adjust that amount for inflation each year, with a high historical chance the money lasts ~30 years. Lower rates (3–3.5%) are safer for very long or early retirements. Move the withdrawal-rate slider to see how sensitive your number is to it.
Does this account for inflation?
Yes. The return you set is treated as a real (after-inflation) return — around 7% is a common long-run figure for a global stock portfolio after inflation. So your FI number and the year you reach it are already in today’s purchasing power.
How much difference does saving more each month make?
A large one, and it compounds. Every extra €100/month not only adds to the pot directly but earns returns for decades. In Pro, the calculator spells out how many months each extra €100 shaves off your freedom date.
Should I include my pension or home equity?
Include invested assets you’ll actually draw an income from (pensions, index funds, ISAs). A home you live in doesn’t usually generate spendable income, so most people leave it out of the FI number — though downsizing later can change that.
What isn’t included?
This is an educational estimate. It assumes steady returns and doesn’t model taxes, market crashes, sequence risk, or changes to your spending over time. Treat it as a direction of travel, not a promise — and revisit it as your life changes.