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Retirement & FIRE Calculator

Determine 'The Number' you need for absolute financial freedom. Model your safe withdrawal rates and path to early retirement.

Your Parameters

Adjusted for today's value

Early Retirement Likely

Based on these numbers, you will have $2,386,868 by age 65.

Retirement Pot at Age 65
$2,386,868

Target FIRE Number

$1,200,000

Safe Monthly Payout

$7,956

Savings Progress

198.9% of FIRE goal reached

Investment Edge

7%

Effective Annual Return

The 4% Rule

Based on the Trinity Study, 4% is considered a 'safe withdrawal rate' that allows your retirement portfolio to survive for 30+ years by withdrawing only the gains and adjusting for inflation.

This tool is useful for Early Retirement Seekers, Career Professionals, and Financial Planners (and for everyone else who wants to decode their \"Freedom Number\" and design a sustainable retirement exit strategy).

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Planning for Financial Independence (FIRE)

Retirement planning is no longer just for the elderly. The FIRE (Financial Independence, Retire Early) movement has popularized the idea of accumulating enough assets so that work becomes optional. Whether you plan to retire at 40 or 65, the mathematical principles remain the same: your annual withdrawal amount must be sustainable relative to your total portfolio.

The Social Security Administration provides calculators for government benefits, but for private retirement, you must rely on your own investment strategy.

The 4% Rule Explained

A cornerstone of retirement planning is the "Safe Withdrawal Rate," often cited as 4% based on the Trinity Study. This rule suggests that if you withdraw 4% of your initial portfolio in the first year and adjust for inflation thereafter, your money has a high probability of lasting 30 years or more.

Retirement Target = Annual Expenses × 25

Example: If you need $40,000 per year, your target is $1,000,000.

How This Calculator Helps

Our engine doesn't just look at a single number. It models your path to retirement by considering:

  • Current Age vs. Retirement Age: Determines your investment time horizon.
  • Expected Post-Retirement ROI: Portfolios usually move to more conservative assets (bonds) after retirement.
  • Inflation Protection: As monitored by the Federal Reserve, inflation averages 2-3% and must be factored into your future living expenses.

Retirement Account Types

Where you save is just as important as how much you save. According to the IRS Retirement Plan guide, using tax-advantaged accounts like 401(k)s, Traditional IRAs, and Roth IRAs can significantly accelerate your progress through tax-free growth or upfront tax deductions.

The Power of the Savings Rate

Your time to retirement is primarily determined by your Savings Rate (percentage of income saved). If you save 10%, it takes 9 years to save for 1 year of expenses. If you save 50%, you save for 1 year of expenses every year you work.