FIRE calculator
FIRE stands for Financial Independence, Retire Early: having assets that cover your expenses without having to work. The calculator estimates in how many years your assets reach 25 times your annual expenses, the threshold of the 4% rule.
FIRE target
€ 600,000
25 times annual expenses
Years to target
27
Age at target
57
Already reached
8.3%
Assets by age, in today's euros
If you save more or less
How the target date moves with monthly savings
| Change | Savings a month | Years | Age |
|---|---|---|---|
| -20% | € 800 | 31 | 61 |
| -10% | € 900 | 29 | 59 |
| 0% | € 1,000 | 27 | 57 |
| +10% | € 1,100 | 26 | 56 |
| +20% | € 1,200 | 24 | 54 |
Estimates for information only, not financial or tax advice: the results depend on the assumptions entered, and past returns do not guarantee future ones.
The 4% rule and the 25x target
The 4% rule comes from William Bengen's work (1994) and the so-called Trinity Study of US markets: withdrawing 4% of the assets in the first year and then adjusting the withdrawal for inflation, the assets lasted at least 30 years in most of the historical periods studied.
If you withdraw 4% a year, you need assets of 25 times your annual expenses: with €24,000 of expenses, €600,000.
Real return and savings
The calculation works in real terms: it takes inflation off the return, so the target stays in today's euros. Each month the assets grow by the real return and receive the savings. The sensitivity table shows how the date moves if you save 10 or 20% more or less.
The limits of the calculation
- The 4% rule comes from US historical data and 30-year horizons: for very early retirements many prefer a lower withdrawal.
- Taxes on withdrawals are left out, as are pensions or other future income.
- The return is constant: a run of bad years at the start of withdrawals weighs more than the same fall later on.
Frequently asked questions
Do the assets include my home?
Usually not: what counts is the invested assets that earn a return and that you can withdraw from. The home you live in lowers expenses, but you cannot withdraw from it.
Why does the result say 60+?
With the values entered the assets do not reach the target within 60 years. Try raising savings or lowering expenses to see how close it gets.
Should I enter the gross or net return?
The calculation is more realistic with a return net of costs and taxes: the calculator itself only takes off inflation.
Your real net worth, updated every day
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