What is FIRE?
FIRE stands for Financial Independence, Retire Early. The idea is simple: save and invest a large share of your income until your investments can cover your living expenses indefinitely. At that point work becomes optional.
The math rests on three numbers you control or estimate:
- Annual spending sets your target. Your FIRE number is usually 25 times annual spending, based on the 4% rule.
- Savings rate sets your speed. The savings rate calculator shows why going from 10% to 50% cuts decades off your working life.
- Investment returns do the heavy lifting over time, as the compound interest calculator shows.
Types of FIRE
| Type | What it means | Calculator |
|---|---|---|
| Lean FIRE | Retiring on a minimal budget, often under $40,000 a year | FIRE number |
| Regular FIRE | Covering a typical middle-class lifestyle from investments | FIRE calculator |
| Fat FIRE | Retiring with a large budget, often $100,000+ a year | FIRE number |
| Coast FIRE | You've saved enough that growth alone will fund retirement at a normal age | Coast FIRE |
| Barista FIRE | Part-time work covers some expenses, investments cover the rest | Barista FIRE |
After you reach FI
Use the retirement withdrawal calculator to test how long a portfolio lasts at different withdrawal rates, returns and inflation.