How to find a FIRE number
Turn annual spending into a portfolio target.
1
Estimate retirement spending
Use a realistic annual budget, including housing and health costs.
2
Choose a withdrawal rate
Start with 3% to 4% and test a lower rate for a longer retirement.
3
Add your current savings
The result shows progress and the time to close the gap.
What does this tool do?
The FIRE number is annual spending divided by a safe withdrawal rate. Progress depends on the gap to that number and the return on new savings.
The Formula
FIRE number = Annual spending ÷ Withdrawal rate; years found by compounding savings to the targetFrequently Asked Questions
What withdrawal rate should I use?
Three to four percent is a common planning range for a long retirement. A lower rate needs a larger portfolio but is more conservative.
Does the FIRE number include a mortgage?
It should include all spending expected in retirement. Paying off a mortgage lowers the target.