Use this FIRE number calculator to estimate how much money you may need to reach financial independence or retire early.
Your FIRE number is the amount of invested assets you may need to cover your annual expenses without relying on traditional employment income.
A common rule of thumb is to divide annual expenses by your planned withdrawal rate. For example, with a 4% withdrawal rate, the formula is annual expenses multiplied by 25.
If your annual expenses are $40,000 and you use a 4% withdrawal rate, your estimated FIRE number would be $1,000,000.