Calculateur du Nombre FIRE — Formule

FIRE Number

FIRE Number = Annual Expenses / Withdrawal Rate

At a 4% withdrawal rate: FIRE Number = Annual Expenses x 25

Once your investment portfolio equals your FIRE number, you can theoretically live off the returns indefinitely.

FIRE Variants

TypeExpensesMultiplier Lean FIRE<$40kx25 Regular FIRE$40-80kx25 Fat FIRE>$80kx25

Exemple Résolu

$40,000 annual expenses, 4% withdrawal rate, $200,000 saved.

  1. FIRE number = $40,000 / 0.04 = $1,000,000
  2. Progress = $200,000 / $1,000,000 = 20%
  3. Remaining = $1,000,000 - $200,000 = $800,000