← Guides · November 10, 2026
What Is Your FIRE Number? How to Calculate It
FIRE stands for Financial Independence, Retire Early. The core idea is a single target: the amount of invested money that can fund your spending indefinitely.
The formula
FIRE number = annual spending ÷ withdrawal rate
With a 4% rate this is the same as annual spending times 25. If you spend $48,000 a year, the number is $1,200,000. With a more cautious 3.5% rate it is about $1,371,000.
Use spending, not income
What matters is what you will spend in retirement. Add up housing, food, health insurance, travel and taxes. Many people spend less after work expenses disappear and more on healthcare, so avoid copying today’s budget blindly.
What moves the number
- Lower spending reduces the target and increases your savings at the same time, so it is the strongest lever.
- Other income such as a pension, rental income or part-time work shrinks the amount your portfolio must cover.
- The withdrawal rate is an assumption, not a guarantee. Longer retirements usually call for lower rates.
How long it takes
Your timeline depends on savings rate, current balance and returns. Real returns are never smooth: markets fall, and a bad first few years matter most.
Keep a margin
Treat the result as a range. Many people add a buffer or plan flexible spending in down years.
Enter your numbers in the calculator to see your target and the years remaining.