What Is Your FIRE Number?
Updated July 2026 · Educational guide
FIRE stands for Financial Independence, Retire Early. Your “FIRE number” is a rough portfolio target that may support your annual spending through investment withdrawals—without relying on a traditional paycheck.
The Rule of 25 shortcut
A common starting point is: FIRE number ≈ annual expenses × 25. That pairs with a 4% safe withdrawal rate (SWR). Example: if you need $36,000 per year, a 4% SWR implies about $900,000 invested. Lower spending shrinks the target; higher spending raises it.
Why savings rate matters so much
Raising your savings rate does two things at once: you invest more each year, and you often reduce the lifestyle cost you must fund later. That is why savings rate can compress the timeline faster than simply earning more while spending more.
Stress-test before you trust a date
- Try a lower return assumption (markets underperform for long stretches).
- Try a more conservative SWR (for example 3–3.5%).
- Include healthcare, housing, and inflation in expense estimates.
- Treat the “years to FIRE” output as a scenario, not a promise.
How to use the planner
Enter current net worth, income, expenses, savings rate, expected return, and SWR. Read the FIRE target and timeline together. If the date feels unrealistic, adjust spending or savings before assuming a higher return will fix everything.