Financial Independence Number Calculator
Calculate the total net worth you need to achieve Financial Independence (FI) based on your annual spending and desired safe withdrawal rate (SWR).
What's Your Financial Independence Number?
Your Financial Independence Number (often called a "FIRE Number") is the amount of invested assets you need to accumulate so that you can live off the investment returns indefinitely without ever having to work for money again.
It's most commonly calculated using the 4% Rule, which suggests you can safely withdraw 4% of your portfolio each year. This is equivalent to multiplying your desired annual expenses by 25. This calculator helps you determine your unique number based on your spending and desired Safe Withdrawal Rate (SWR).
How to Use This Calculator
Estimate Annual Expenses
Enter your estimated annual expenses in retirement. This is the most important factor in your calculation. You can sync this with your profile for convenience.
Choose a Safe Withdrawal Rate (SWR)
Use the slider to select your desired Safe Withdrawal Rate, which is represented as a multiplier. A multiplier of 25 is equivalent to the popular 4% SWR.
Determine Your FI Number
The calculator multiplies your annual expenses by your chosen multiplier to determine the total net worth you need to achieve Financial Independence.
The Why Behind the 4% Rule
Understanding the mechanics of safe withdrawal rates is crucial for planning a retirement that never runs out of money.
The Trinity Study
A landmark 1998 study found that a 4% initial withdrawal rate had a 95%+ success rate over 30 years. This is the origin of the '25x Expenses' rule.
Withdrawal Rate Risks
A higher withdrawal rate (e.g., 5%) significantly increases failure risk. A lower rate (3.5%) makes your money last longer but requires a larger portfolio.
Inflation Matters
The 4% rule assumes you increase withdrawals for inflation. If inflation is high, your portfolio needs to work harder to keep up.
Flexibility is Key
If you can reduce spending during market downturns, you can likely succeed with a smaller portfolio or higher withdrawal rate.
Take Your Plan to the Next Level
This calculator is just one piece of the puzzle. Use our full Financial Independence Simulator to unite your income, investments, and expenses into a single, interactive roadmap.
You've Got Your Number. What's Next?
Knowing your goal is the first step. Now you can start planning your journey to reach it.
Frequently Asked Questions
Your FIRE (Financial Independence, Retire Early) Number is the total amount of invested assets you need to accumulate so that you can live off the investment returns indefinitely without ever having to work for money again. It's typically calculated by multiplying your expected annual expenses in retirement by a number between 25 and 33.
The Safe Withdrawal Rate is the percentage of your portfolio that you can withdraw each year in retirement with a low probability of running out of money. The 4% rule, based on the Trinity Study, is a common SWR, which corresponds to a FIRE Number that is 25 times your annual expenses.
There are several variations of FIRE, including: 'Lean FIRE' (retiring with a minimal, frugal budget), 'Fat FIRE' (retiring with a large budget for a more luxurious lifestyle), and 'Barista FIRE' (having enough saved to quit a traditional high-stress job and work part-time in a low-stress job to cover current expenses while investments continue to grow).
Yes, this is a critical consideration. The annual expenses you enter should be your estimated post-tax spending. Your withdrawal strategy must account for capital gains and income taxes so that your net withdrawal covers your expenses. Many people use tax-advantaged accounts like a Roth IRA or a Roth Conversion Ladder to minimize taxes in retirement.