FIRE Number Calculator (4 % Rule)
FIRE calculator: how much you need invested to retire early, from annual expenses and a safe withdrawal rate (4 % rule).
N = Ew
How to use this calculator
- Choose the quantity you want under “Solve for”.
- Type the known values and pick their units: any combination works.
- The result updates as you type. Open “Show the steps” to see the substitution.
The 4 % rule says a diversified portfolio can usually fund withdrawals of 4 % of its starting value a year, adjusted for inflation, for about 30 years. Your FIRE number is therefore annual expenses ÷ 0.04, or 25× expenses.
For retirements longer than 30 years, many planners use 3–3.5 %. Use the savings calculator to see how long it takes to get there.
Formula
N = Ew
| Symbol | Quantity | Units |
|---|---|---|
| E | Annual expenses | $, €, £ |
| w | Safe withdrawal rate | %, × |
| N | Portfolio needed | $, €, £ |
Worked example
Given: E = 40,000.00 $ · w = 4 %
N = Ew
Result: N = 1,000,000.00 $
Portfolio needed for different values of Annual expenses
| E · Annual expenses | N · Portfolio needed |
|---|---|
| 20,000.00 $ | 500,000.00 $ |
| 30,000.00 $ | 750,000.00 $ |
| 36,000.00 $ | 900,000.00 $ |
| 40,000.00 $ | 1,000,000.00 $ |
| 44,000.00 $ | 1,100,000.00 $ |
| 50,000.00 $ | 1,250,000.00 $ |
| 60,000.00 $ | 1,500,000.00 $ |
| 80,000.00 $ | 2,000,000.00 $ |
Other values as in the worked example.
Frequently asked questions
How much do I need to retire on $40,000 a year?
40,000 ÷ 0.04 = $1,000,000.
Where does the 4 % rule come from?
From studies of historical US stock and bond returns, notably the Trinity study, which found 4 % withdrawals survived most 30-year periods.
Related calculators
- Break-Even Point Calculator
- Hourly to Salary Calculator
- Tip Calculator & Bill Splitter
- Dividend Yield Calculator
- APR to APY Calculator (Effective Annual Rate)
- Present Value Calculator
- Future Value Calculator (Lump Sum)
- Real Rate of Return Calculator (Inflation-Adjusted)
Last updated: · Report an error