FIRE Financial Independence Calculator
Estimate how much you need to cover your expenses and how long it could take to reach financial independence.
Projected portfolio and FIRE target
Year-by-year projection
| Year | Portfolio | FIRE target |
|---|
This model assumes fixed nominal monthly contributions, smooth returns and inflation, and contributions at month-end. Returns exclude taxes and additional fees. The withdrawal rate is an assumption, not a guarantee.
How the FIRE calculator works
FIRE (Financial Independence, Retire Early) means that income from your capital covers your expenses. The target is calculated as annual expenses / withdrawal rate (SWR). For example, expenses of €1,500 a month and a 4% SWR give a target of €450,000. The calculator accounts for inflation: the target grows over time, and it shows when your portfolio catches up with it.
Frequently asked questions
What is the 4% rule?
It is a guideline from research on the US market: withdraw 4% of the portfolio in the first year, then adjust the amount for inflation. For other markets and longer horizons estimates are more cautious, so it is sensible to test several withdrawal rates, for example 3–4%.
Why does the target grow over time?
Expenses rise with inflation, so the capital you need rises too. The calculator compares your portfolio with the inflation-adjusted target.
What is not included?
Taxes, pensions, irregular expenses and sequence-of-returns risk. The result is a planning guide, not a forecast.
This information is general and educational and is not investment advice.