Stop guessing. Enter the annual lifestyle you want in retirement and find out exactly how much you need to save every day or month — and the date you could realistically hand in your resignation.
Your "FIRE number" (Financial Independence, Retire Early) is the portfolio size needed to sustain your desired annual spending using your chosen withdrawal rate — calculated as annual spending divided by the withdrawal rate. For example, wanting $40,000/year at a 4% withdrawal rate means you need a $1,000,000 portfolio.
The calculator then works out how much your current savings will grow to by your target date on their own, and how much additional daily or monthly saving (invested at your expected return) is needed to close the remaining gap and hit your FIRE number exactly on schedule.
It's the total investment portfolio size you'd need so that withdrawing a safe percentage each year (commonly 4%) covers your desired annual spending indefinitely, without running out of money.
No. It's based on historical market data and comes with real risks (like a market downturn early in retirement). Treat it as a widely used planning guideline, not a guarantee, and consider a financial advisor for your actual retirement plan.
Because your current savings and future contributions grow through investment returns before you retire — a higher assumed return lowers how much you need to save yourself, but real returns vary year to year and aren't guaranteed.