FIRE Retirement Calculator
4% RuleCalculate how much you need to save to achieve Financial Independence and Retire Early using the proven 4% rule.
The 4% rule is the most common SWR. Conservative investors might use 3%, aggressive 5%.
Enter your spending
What is FIRE?
FIRE stands for Financial Independence, Retire Early. It's a movement focused on extreme savings and investment to allow retirement much earlier than traditional retirement plans. The goal is to save and invest aggressively—often 50-70% of income—to build a portfolio large enough to cover living expenses indefinitely.
How the 4% Rule Works
The 4% rule is a guideline for retirement withdrawals. It suggests you can safely withdraw 4% of your portfolio in the first year of retirement, then adjust that amount for inflation each year, with a high probability of not running out of money over a 30-year retirement. To calculate your FIRE number: divide your annual expenses by 0.04 (or multiply by 25).
Example: If you spend $40,000 per year, your FIRE number would be $40,000 ÷ 0.04 = $1,000,000
How to Use This Calculator
- Choose whether you're entering monthly or yearly spending
- Enter your spending amount in your preferred currency (IDR or USD)
- Adjust the Safe Withdrawal Rate (default 4%, range 3-5%)
- View your FIRE number and projected withdrawal amounts
- Try different scenarios using the preset examples
Frequently Asked Questions
Is the 4% rule safe?
The 4% rule is based on historical market returns and has a high success rate over 30-year periods. However, it's not guaranteed. Consider using 3-3.5% for more conservative planning or if you plan to retire for longer than 30 years.
Should I use 3%, 4%, or 5% withdrawal rate?
4% is the traditional choice. Use 3-3.5% for conservative planning, early retirement (40+ years), or volatile markets. 5% is more aggressive and suitable only for those with flexible spending or other income sources.
Does this account for inflation?
The 4% rule assumes you'll adjust your withdrawals for inflation each year. The calculator shows the initial withdrawal amount. In practice, you'd increase this by inflation annually.
What about taxes and healthcare?
This calculator shows pre-tax numbers. Your actual FIRE number should account for taxes on withdrawals, healthcare costs (especially if retiring before Medicare/national health coverage eligibility), and other factors specific to your situation.
Can I use this for retirement in Indonesia?
Yes, the 4% rule applies to any market, though you should consider local inflation rates, healthcare costs, and tax implications. Indonesian retirees may have different considerations than US-based retirees.
What investments should I hold?
The 4% rule assumes a diversified portfolio of stocks and bonds (typically 50-75% stocks). Consult a financial advisor for investment advice specific to your situation and risk tolerance.