FIRE Calculator: When Can You Actually Retire Early?
We calculated exactly how long it takes to reach financial independence at every savings rate. The math is simpler than you think.
How long until you can tell your boss goodbye forever? We ran the numbers at every savings rate using our FIRE Calculator and Time to FI Calculator. The results show that your savings rate matters more than your salary.
The Simple Math Behind FIRE
Financial Independence requires enough invested that your returns cover your expenses. The standard rule:
FI Number = Annual Expenses × 25
This assumes a 4% safe withdrawal rate. If you spend $50,000/year, you need $1,250,000 invested.
But how long does it take to get there? That depends almost entirely on one number: your savings rate.
Time to FI: The Complete Table
Using our Time to FI Calculator, we calculated years to financial independence at every savings rate (assuming 7% real returns):
| Savings Rate | Years to FI | Retire Age (if starting at 22) |
|---|---|---|
| 5% | 66 years | 88 |
| 10% | 51 years | 73 |
| 15% | 43 years | 65 |
| 20% | 37 years | 59 |
| 25% | 32 years | 54 |
| 30% | 28 years | 50 |
| 35% | 25 years | 47 |
| 40% | 22 years | 44 |
| 45% | 19 years | 41 |
| 50% | 17 years | 39 |
| 55% | 14.5 years | 36.5 |
| 60% | 12.5 years | 34.5 |
| 65% | 10.5 years | 32.5 |
| 70% | 8.5 years | 30.5 |
| 75% | 7 years | 29 |
| 80% | 5.5 years | 27.5 |
Calculate your exact time to FI →
The Shocking Insight
Look at that table again:
- 10% to 20%: Cuts 14 years off your working life
- 20% to 30%: Cuts another 9 years
- 30% to 50%: Cuts 11 more years
Every 10% increase in savings rate has a massive impact. This is why FIRE isn't about earning more—it's about spending less.
***** Someone earning $50K and saving 50% reaches FI faster than someone earning $200K and saving 10%. Savings rate beats salary every time.
Real Scenarios: We Ran the Numbers
Scenario 1: The Median American
- Salary: $60,000
- Savings rate: 10% ($6,000/year)
- Annual expenses: $54,000
- FI Number: $1,350,000
Using our FIRE Calculator:
| Milestone | Years | Age (starting at 30) |
|---|---|---|
| $100K invested | 11 years | 41 |
| $500K invested | 31 years | 61 |
| FI ($1.35M) | 51 years | 81 |
Reality check: At 10% savings, you're basically working until you die.
Scenario 2: The Intentional Saver
- Salary: $60,000
- Savings rate: 30% ($18,000/year)
- Annual expenses: $42,000
- FI Number: $1,050,000
| Milestone | Years | Age (starting at 30) |
|---|---|---|
| $100K invested | 5 years | 35 |
| $500K invested | 17 years | 47 |
| FI ($1.05M) | 28 years | 58 |
Same salary, but retiring at 58 instead of 81. That's 23 extra years of freedom.
Scenario 3: The Aggressive Saver
- Salary: $60,000
- Savings rate: 50% ($30,000/year)
- Annual expenses: $30,000
- FI Number: $750,000
| Milestone | Years | Age (starting at 30) |
|---|---|---|
| $100K invested | 3 years | 33 |
| $500K invested | 12 years | 42 |
| FI ($750K) | 17 years | 47 |
Retiring at 47. Same $60K salary as Scenario 1.
The Two Levers: Income and Expenses
Your time to FI depends on two things:
1. How much you save (obvious)
More savings = faster FI
2. How much you need to save (less obvious)
Lower expenses = lower FI number = faster FI
This is the double benefit of frugality:
- You save more each month
- You need less to be financially independent
Example:
Cutting $500/month from expenses:
- Saves $6,000/year (more investing)
- Reduces FI number by $150,000 (need less)
- Combined effect: 5-7 years earlier FI
The 4% Rule: Does It Still Work?
The 4% rule comes from the Trinity Study, which found that withdrawing 4% of your portfolio annually (adjusted for inflation) has historically survived 30-year retirements.
But there are caveats:
| Concern | Reality |
|---|---|
| 30 years might not be enough | If retiring at 40, use 3.5% or lower |
| Future returns might be lower | Consider 3.25-3.5% for safety |
| Sequence of returns risk | First 5 years matter most |
Our Monte Carlo Retirement Calculator runs thousands of scenarios to show your actual probability of success.
FIRE Variations: Find Your Flavor
Lean FIRE
- Expenses: $20,000-$40,000/year
- FI Number: $500K-$1M
- Lifestyle: Frugal, minimalist
- Time to FI: Fastest
Regular FIRE
- Expenses: $40,000-$60,000/year
- FI Number: $1M-$1.5M
- Lifestyle: Comfortable middle class
- Time to FI: Moderate
Fat FIRE
- Expenses: $80,000-$150,000+/year
- FI Number: $2M-$4M+
- Lifestyle: Luxury, no compromise
- Time to FI: Longest
Coast FIRE
- Save enough that it will grow to your FI number by traditional retirement
- Then only work enough to cover current expenses
- Reduces stress without full retirement
Barista FIRE
- Reach partial FI
- Work part-time for health insurance and spending money
- Best of both worlds
The Investment Math
Using our Investment Returns Calculator, here's how $1,000/month grows:
| Years | 5% Return | 7% Return | 10% Return |
|---|---|---|---|
| 5 | $68,000 | $71,600 | $77,400 |
| 10 | $155,300 | $173,100 | $204,800 |
| 15 | $267,300 | $317,800 | $414,500 |
| 20 | $411,000 | $520,900 | $759,400 |
| 25 | $595,500 | $810,700 | $1,330,000 |
| 30 | $832,300 | $1,219,000 | $2,280,000 |
Model your own investment growth →
Common FIRE Mistakes
1. Ignoring Taxes
Your $1M in a 401(k) isn't $1M spendable. Plan for taxes in retirement.
2. Forgetting Healthcare
Before Medicare (65), healthcare costs can be $15,000-$25,000/year for a family.
3. Underestimating Inflation
$50K/year today is $90K in 20 years at 3% inflation. Our calculators use real (inflation-adjusted) returns.
4. The "One More Year" Trap
If you've hit your number, you've hit your number. Working "one more year" is a common regret.
5. Neglecting the Non-Financial
FIRE is about freedom, not just money. Have a plan for what you'll do with your time.
Your Action Plan
Step 1: Calculate Your FI Number
Annual expenses × 25 = FI Number
Step 2: Find Your Savings Rate
(Income - Expenses) / Income × 100
Step 3: Calculate Time to FI
Use our Time to FI Calculator →
Step 4: Optimize
- Increase income where possible
- Decrease expenses where comfortable
- Invest the difference in low-cost index funds
Step 5: Track and Adjust
Recalculate annually as your situation changes.
The Bottom Line
The math of FIRE is simple:
| Savings Rate | Time to FI |
|---|---|
| 10% | 51 years |
| 25% | 32 years |
| 50% | 17 years |
| 70% | 8.5 years |
Your salary matters less than you think. Your expenses matter more than you think. And compound interest does the heavy lifting.
Financial independence isn't about being rich. It's about having enough that work becomes optional.
Calculate your own path to financial independence:
<div style="margin: 1.5rem 0; padding: 1.5rem; background: linear-gradient(to right, #f0f9ff, #eff6ff); border: 2px solid #bfdbfe; border-radius: 0.75rem;"> <a href="/us/calculators/fire" style="text-decoration: none; color: inherit; display: block;"> <div style="display: flex; align-items: flex-start; gap: 1rem;"> <span style="font-size: 2.5rem;">🔥</span> <div style="flex: 1;"> <h4 style="margin: 0 0 0.5rem 0; font-size: 1.125rem; font-weight: 600; color: #1f2937;"> FIRE Calculator → </h4> <p style="margin: 0; font-size: 0.875rem; color: #4b5563;"> Calculate your path to Financial Independence and Retire Early with savings projections </p> </div> </div> </a> </div>More calculators:
- Time to FI - See how long until you're free
- Investment Returns - Model your growth
- Monte Carlo Retirement - Test your plan's survival rate
The best time to start was yesterday. The second best time is now.