FIRE Number
Your FIRE number is the portfolio that can fund your spending for life: yearly spending divided by a safe withdrawal rate. At the 4% rule that is 25 times spending, so $50,000 a year needs $1,250,000. The table shows it at every common rate from 3% to 5%.
Your FIRE number
$1,250,000
Your FIRE number at 4%
- Monthly spending it funds $4,167
- Multiple of spending 25.0 ×
- At 3.5% instead $1,428,571
- At 3% instead $1,666,667
| Withdrawal rate | Multiple | FIRE number |
|---|---|---|
| 3% | 33.3 × | $1,666,667 |
| 3.25% | 30.8 × | $1,538,462 |
| 3.5% | 28.6 × | $1,428,571 |
| 4% | 25.0 × | $1,250,000 |
| 4.5% | 22.2 × | $1,111,111 |
| 5% | 20.0 × | $1,000,000 |
How is the FIRE number worked out?
FIRE number = yearly spending ÷ withdrawal rate. Multiple of spending = 1 ÷ withdrawal rate (25 at 4%, 28.6 at 3.5%, 33.3 at 3%).
Worked example. $50,000 ÷ 0.04 = $1,250,000, or 25 × $50,000. At 3.5% the same spending needs $50,000 ÷ 0.035 = $1,428,571; at 3%, $1,666,667. The portfolio then pays $4,167 a month in the first year, rising with inflation after that.
Picking the withdrawal rate
4% is the classic figure, tested over 30-year retirements with US stocks and bonds. If you expect to be retired for 40 years or more, or you want the plan to survive a poor first decade, 3.5% is the common choice and 3.25% the cautious one. Each quarter-point lower adds about 7% to the number. The guide to the 4 percent rule gives the history and the arguments.
The number is a target, not a switch
Reaching it does not force anything. Some people keep working a year or two past it for a cushion; some stop early with a plan to earn a little (Barista FIRE); some find the number falls as their spending does. What it gives you is a measure: the share of the number you hold is the share of your spending the portfolio could already pay.
From the number to the date
The number alone does not say when. Add what you have, what you save and a real return to the FIRE calculator and it draws the year-by-year path; or put only your savings rate into the financial independence calculator for the years to FI without any dollar figures.
Questions about the FIRE number
Why 25 times spending?
Because 1 ÷ 0.04 = 25. The 4% rule says a portfolio can pay out 4% of its starting value a year, rising with inflation, and last at least 30 years in almost every historical case. Turn that round and the portfolio must be 25 times the yearly spending. At 3.5% it is 28.6 times; at 3%, 33.3 times.
Should I use my spending now or in retirement?
Retirement. Drop the mortgage if it will be paid off, the commute and work clothes, and any saving for retirement itself; add health costs, travel and hobbies. Most people land within 20% of their current spending either way, so start with today’s figure and adjust.
Does the FIRE number include taxes?
Only if your spending figure does. Withdrawals from some accounts are taxed, so if $50,000 of spending needs $55,000 of withdrawals, use $55,000. Tax on investment income varies too much by country and account type for a calculator to guess.
Is the number in today’s money?
Yes. Both the spending and the number are in today’s dollars. If you reach it in 15 years, the actual figure then will be higher by inflation, but so will your spending, and the ratio of 25 still holds. The how much do I need to retire page shows the figure in the money of your retirement year too.
What is a typical FIRE number?
For a single person spending $40,000, $1,000,000 at 4%. For a couple spending $80,000, $2,000,000. Lean FIRE plans often sit near $750,000; fat FIRE plans above $3,000,000.