Calculate your path to Financial Independence Retire Early (FIRE). Determine your FI number using the 4% safe withdrawal rule, years until retirement, required monthly savings, and current progress percentage. Compare Lean FIRE, Standard FIRE, and Fat FIRE targets based on your annual expenses and desired retirement lifestyle with 2025 tax and inflation considerations.
Frequently Asked Questions
What is the FIRE movement and how do I calculate my FI number in 2025?
**FIRE definition**: Financial Independence Retire Early movement aims to accumulate 25-30x annual expenses, enabling retirement decades before age 65. **FI number formula**: Annual Expenses × 25 = FI Number (4% safe withdrawal rate).
Example: $50,000 expenses × 25 = **$1,250,000 FI number**. **FIRE variations**: Lean FIRE ($30-40k/year, $750k-$1M), Standard FIRE ($50-70k/year, $1.25-1.75M), Fat FIRE ($100k+/year, $2.5M+), Barista FIRE (part-time work), Coast FIRE (stop saving, compound to 65). **4% rule**: Withdraw 4% annually, historically sustainable 30+ years. 2025 considerations: inflation 3.5-3.8%, elevated valuations suggest 3.5% for safety, longer retirements (30-50 years).
How long will it take to reach FIRE and what savings rate do I need?
**Years to FIRE by savings rate** (7% returns): 10% rate = 51 years, 20% = 37 years, 30% = 28 years, 40% = 22 years, 50% = 17 years, 60% = 12.5 years, 70% = 8.5 years, 80% = 5.5 years.
Savings rate matters most! **Example**: $80k income, $40k expenses = 50% rate, $40k/year saved, $1M target in **17 years**. **Acceleration**: income (raises 3-5%/year, job hopping 10-20%, side hustles $500-2000/month), expenses (housing $1000-1500 via geoarbitrage, transport $500/month, food $400-600), investments (max 401k $23,500, HSA $8,550, Roth IRA $7k).
Most achieve FIRE in 10-20 years with 40-60% savings rates.
What is the 4% rule and should I use 3.5% or 4% in 2025?
**4% rule**: Trinity Study showed 4% initial withdrawal (inflation-adjusted) lasted 30 years 95% of time with 50/50 stocks/bonds.
Example: $1M portfolio → $40k year 1, $41k year 2 (3% inflation). **2025 debate**: **3.5% conservative** - elevated valuations (CAPE 30+ vs 16), lower bonds (4-5% vs 6-8%), longer retirements (40-50 years). **4% traditional** - historical data, spending flexibility, part-time work option, Social Security later. **Recommendation**: Use 3.5-3.8% for planning, 4% if flexible spending, 4.5% if confident. **Dynamic strategy**: Start 4%, cut to 3% in crashes, raise to 5% in bull markets. **Safety**: Keep 1-2 years cash, use guardrails (20% drop = cut 10% spending), annuities for baseline at 70.
What are the biggest FIRE mistakes to avoid in 2025?
**Mistake #1 - Healthcare**: Pre-Medicare (50-65) costs $600-1200/month.
Add $150k-$200k to FI number, consider benefits jobs, research ACA subsidies. **Mistake #2 - Sequence risk**: Retiring into bear market depletes portfolio.
Build 20% cushion, delay 1-2 years, bond tent first 5 years. **Mistake #3 - Taxes**: 401k withdrawals taxable! Roth conversion ladder, 60% Roth/40% Traditional mix, use $14,600 deduction + 10-12% bracket. **Mistake #4 - Boredom**: 40-50 year retirement, many return to work.
Develop hobbies, volunteer, passion projects, social connections. **Mistake #5 - Return assumptions**: 10% vs 7% = 10-year difference.
Use conservative 6-7%, stress-test 5-6%, don't assume bull market.
Should I pursue Lean, Standard, or Fat FIRE in 2025?
**Lean FIRE ($30-40k/year)**: $750k-$1M needed.
Lifestyle: $2,500-3,300/month, geoarbitrage, minimal car, cook home.
Achievable 8-12 years.
Best for minimalists, nomads. **Standard FIRE ($50-70k/year)**: $1.25-1.75M needed.
Lifestyle: $4,200-5,800/month, modest home, reliable car, 2-3 trips/year.
Takes 12-18 years.
Best for families, balanced lifestyle. **Fat FIRE ($100-150k/year)**: $2.5-3.75M needed.
Lifestyle: $8,300-12,500/month, large home, business class travel, fine dining.
Requires 20-30 years or $200k+ income.
Best for high earners. **Recommendation**: Start Standard FIRE, maintain flexibility to scale Lean or Fat based on life changes, markets.
Adaptability key to success.
What investment strategy reaches FIRE fastest in 2025?
**Allocation by stage**: Accumulation (0-50% to FI) 90-100% stocks, Mid-phase (50-80%) 80-90% stocks/10-20% bonds, Near-FI (80-100%) 70-80% stocks, Early retirement (first 5 years) 60-70% stocks (bond tent). **Account priority**: 1) 401k to match, 2) HSA $8,550, 3) Roth IRA $7k, 4) Max 401k $23,500, 5) Mega Backdoor Roth, 6) Taxable. **Index strategy**: 70% US total market (VTI), 20% international (VXUS), 10% bonds (BND), under 0.10% expense ratio. **Avoid**: Active management (85% underperform), high fees (1% = $300k lost), individual stocks, crypto. **DCA**: Invest $3-5k monthly automatically. **Expected returns**: Stocks 7-8% real, Bonds 2-3%, 60/40 = 5-6%.
Plan for 6-7%, stress-test 5%.
About This Page
Editorial & Updates
- Author: SuperCalc Editorial Team
- Reviewed: SuperCalc Editors (clarity & accuracy)
- Last updated: 2026-01-13
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Financial/Tax Disclaimer
This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.