Personal Finance

FIRE & Compound Interest Calculator

Project your path to financial independence with year-by-year compound growth and a FIRE target number based on the 4% rule.

Your Financial Profile

$
$
7%
4%
$

FIRE Target Number

$1,000,000

Annual expenses ÷ withdrawal rate

Projected Net Worth at Retirement

$2,192,685

At target retirement age

Years to Financial Independence

16

Age at FI: 46

Wealth Accumulation vs. FIRE Target

Exceeds target — you reach FI before retirement age
Projected Wealth
FIRE Target
AdvertisementBanner
Ad

How the FIRE Calculator Works

The FIRE (Financial Independence, Retire Early) calculator projects your year-by-year compound growth from current savings and monthly contributions, then compares your projected net worth at your target retirement age against your FIRE target number. The FIRE target is calculated as your annual retirement expenses divided by your safe withdrawal rate (typically 4%).

FIRE Formulas

FIRE Target = Annual Expenses ÷ Safe Withdrawal Rate
Annual Growth = (Previous Balance + Monthly Contributions × 12) × (1 + Return Rate)
Future Value = PV × (1 + r)^n + PMT × [((1 + r)^n - 1) ÷ r]

The 4% Rule and the Trinity Study

The 4% rule is a widely cited guideline from the Trinity Study, which found that a portfolio of stocks and bonds could sustain annual withdrawals of 4% of the initial balance for 30 years with high probability.

The 4% Safe Withdrawal Rate

Withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each subsequent year. This gives you a high probability of your portfolio lasting 30+ years.

The Trinity Study

The Trinity Study (1998) tested various withdrawal rates against historical market returns. It found that 3-4% withdrawal rates from a stock-bond portfolio survived 30+ years in nearly all historical scenarios.

Frequently Asked Questions

Related Personal Finance Tools

AdvertisementBanner
Ad