Retirement Example
FIRE Calculation — How Much Do You Need to Retire Early?
Calculate your FIRE number based on annual expenses and safe withdrawal rate.
Scenario
Calculate FIRE number for $35k, $50k, and $70k annual expenses.
Inputs
Withdrawal Rate4% (25× rule)
Results
$35k/year expenses → FIRE #$875,000
$50k/year expenses → FIRE #$1,250,000
$70k/year expenses → FIRE #$1,750,000
$100k/year expenses → FIRE #$2,500,000
Explanation
The FIRE number is simply annual expenses × 25. Reducing annual expenses by $10k reduces the FIRE target by $250k — which might mean 2–5 fewer years of working. This is why frugality has an outsized impact in FIRE planning.
Key Takeaways
- Geographic arbitrage (cheaper city/country) can lower expenses dramatically.
- Every $1 of annual expenses you cut removes $25 from your FIRE number.