What is Traditional FIRE?
Traditional FIRE means building a portfolio large enough to support your retirement spending using a safe withdrawal rate. The most common shortcut is the 4% rule, which suggests a portfolio of roughly 25 times annual expenses.
This calculator estimates that target, then projects how your current portfolio and annual contributions may grow over time. It also shows whether you are on track to reach the goal by your target retirement age.
How the calculation works
FIRE number = future retirement spending ÷ safe withdrawal rate
Projected portfolio = current assets + compounded growth + annual contributions
Gap or surplus = projected portfolio − FIRE number
Inflation matters because a retirement budget that feels comfortable today may not be enough years later. That is why the calculator lets you include an expense growth rate.
Why Traditional FIRE matters
- Shows the portfolio size needed to support retirement spending
- Lets you compare current progress against a real target
- Makes contribution decisions easier to judge
- Shows the effect of inflation on future spending power
- Helps you see whether your plan is conservative or aggressive
How to use this calculator
- Enter your current age and target retirement age
- Add your current invested assets
- Enter your annual contribution
- Set your retirement spending target and expected return
- Choose a safe withdrawal rate and expense growth rate
- Click calculate to see your FIRE number and projection
Frequently Asked Questions
Traditional FIRE means reaching financial independence with a portfolio large enough to cover spending using a sustainable withdrawal rate, usually around 4%.
It is a common planning shortcut. If you need $40,000 per year, a rough FIRE target is about $1,000,000 because $40,000 ÷ 0.04 = $1,000,000.
Inflation raises future living costs. If your spending increases over time, the portfolio needed for FIRE also increases.
Then small changes matter a lot. A slightly higher contribution, a bit less spending, or a better return assumption can move you across the finish line.
No. Traditional FIRE is about reaching full financial independence. Coast FIRE is about having enough invested today so future growth can do the rest.
No. It gives an estimate based on the inputs you enter. Real market returns, savings changes, taxes, and inflation can change the outcome.