FIRE Calculator
Financial Independence Retire Early Planning
Calculate funds needed for FIRE (Financial Independence, Retire Early). Based on the 4% rule, simulate the amount needed for financial freedom and time to reach it.
🔥 What is FIRE?
FIRE (Financial Independence, Retire Early) is a lifestyle aiming for financial independence and early retirement. The core is the "4% Rule" - save 25x your annual expenses and you can withdraw 4% annually indefinitely. Example: $3K/month expenses → $900K needed.
💼 Severance Pay Calculator
About Severance Pay
- • Paid to employees who worked 1+ years.
- • Must be paid within 14 days of resignation.
- • Retirement income tax applies separately.
- • Actual amount may vary by company policy.
📐 FIRE Core Formulas
FIRE Target = Annual Expenses × 25 (4% withdrawal rate)
Lean FIRE = Essential Expenses × 25 (frugal)
Fat FIRE = Comfortable Expenses × 25 (luxurious)
Time to FIRE = ln(Target/Assets × (r/Savings Rate) + 1) / ln(1+r)
📝 How to Use FIRE Calculator
- Enter monthly or annual living expenses
- Enter current savings/investments
- Enter monthly savings amount
- Enter expected investment return (usually 6-8%)
- View FIRE target amount and time to reach it
📊 FIRE Targets by Monthly Expenses
| Monthly | Lean FIRE | Standard | Fat FIRE | Annual Need |
|---|---|---|---|---|
| $1,500 | $450K | $450K | - | $18K |
| $2,000 | $600K | $600K | - | $24K |
| $2,500 | - | $750K | $750K | $30K |
| $3,000 | - | $900K | $900K | $36K |
| $4,000 | - | - | $1.2M | $48K |
| $5,000 | - | - | $1.5M | $60K |
🎯 FIRE Achievement Strategies
- Maintain 50%+ savings rate (key factor)
- Lean FIRE: Frugal living for faster achievement
- Fat FIRE: Maintain comfortable lifestyle
- Barista FIRE: Part-time income for early FIRE
- Coast FIRE: Build principal, let compound growth work
- Dividend stocks/ETFs for stable cash flow
📚 Local Method & Assumption Guide
Formula Logic
Core formulas use public finance, loan, ratio, and unit conversion standards.
Source Scope
References follow publicly available standards and country-level common practices.
Assumptions
Taxes, fees, rates, and limits vary by region and institution.
Result Interpretation
Use this result as a baseline scenario. For decisions, compare with your lender quote and local tax treatment.
Locale Preset
Currency: USD
Units: imperial
Tax logic: US payroll estimate
Regulatory Note
This tool uses regional presets for estimation. Contract terms and legal limits may differ by lender, bank, or local law.
Recommended Next Actions
- Compare at least 2-3 local providers before final submission.
- Re-check fees, tax treatment, and prepayment clauses in writing.
- Run a stress scenario with +1-2% interest and lower income.
Before a real financial decision, confirm with local institution rules.