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Every FIRE target at three withdrawal rates
To determine your Financial Independence, Retire Early (FIRE) target, you need to calculate a specific savings amount that, when invested, will generate enough income to cover your annual expenses. This target number is derived from a safe withdrawal rate, which dictates how much you can responsibly take out of your investments each year without depleting the principal.
The core question for anyone pursuing FIRE is what precise amount they need to accumulate before they can confidently stop working. This number varies significantly based on individual spending habits and the chosen FIRE strategy, from a modest 'Lean FIRE' to a more lavish 'Fat FIRE', or the flexible 'Coast FIRE' approach.
What this means for you
Your personal FIRE target is directly proportional to your desired annual spending. A higher desired lifestyle means a significantly larger investment portfolio is required to maintain it without active employment. For instance, aiming for a post-retirement spending of $80,000 annually demands a substantially larger target than living on $32,000 per year.
| Variant | Spending it funds | Target | Years from today |
|---|---|---|---|
| Lean FIRE | $32,000 | $800,000 | 18 |
| FIRE | $48,000 | $1,200,000 | 24 |
| Fat FIRE | $80,000 | $2,000,000 | 33 |
| Coast FIRE (26 years of growth) | $48,000 | $392,666 | — |
The table below illustrates different FIRE scenarios based on a consistent 4% safe withdrawal rate, but with varying annual spending goals. These figures represent the total investment portfolio needed to support each lifestyle, along with the estimated time to reach that goal if saving $24,000 per year.
Lean, Standard, Fat, and Coast FIRE Explained
**Lean FIRE** requires the lowest target and is for those willing to live frugally, often on an annual budget of $32,000. This approach prioritizes early retirement over discretionary spending. Reaching this goal typically takes 18 years, assuming a consistent saving rate of $24,000 annually.
**Standard FIRE**, or simply FIRE, aims for a comfortable, average spending lifestyle, here set at $48,000 per year. This is often the most commonly discussed target, requiring a portfolio of $1,200,000 to sustain. At our example saving rate, this target takes 24 years to achieve.
**Fat FIRE** caters to those who desire a more luxurious or unconstrained retirement, with an annual spending goal of $80,000. This necessitates a significant investment sum of $2,000,000, extending the accumulation phase to 33 years for the same saving rate.
**Coast FIRE** offers a different path, focusing on saving a substantial amount early in your career, then allowing it to grow passively without further contributions. In our example, to achieve a $48,000 spending target, you would need to reach a target of $392,666. After this initial saving, the portfolio grows through compounding for 26 years until it reaches the full FIRE amount without additional contributions from employment income.
Our assumptions
The figures presented in this table are based on a few critical assumptions that directly influence the calculated targets and timelines. The primary assumption is a fixed safe withdrawal rate of 4.0%. This rate dictates that you can withdraw 4% of your total portfolio value each year without running out of money over a typical retirement period.
Additionally, the calculations for the 'years to reach target' assume a consistent annual saving of $24,000 and an initial portfolio of $90,000. It's crucial to understand that if your spending differs from the amounts listed ($32,000, $48,000, or $80,000), or if your safe withdrawal rate is different, your individual FI number will also change significantly. For example, a lower safe withdrawal rate, such as 3%, would require a larger overall portfolio to achieve the same annual income.
These calculations do not account for inflation, which would increase the required target over time, nor do they factor in taxes on investment gains or withdrawals, which would reduce your net income. They also assume consistent investment returns, which are not guaranteed. Therefore, while these figures provide a solid baseline, your actual path to financial independence will depend on numerous personalized variables and market performance.
Sources
None, and deliberately so. Every figure on this page is our own arithmetic on the assumptions stated above — the same code that runs our calculators — so there is no outside claim here to source. Change an input and the answer changes with it.
How this was made. Written by our research desk from 0 independent outlets, with every figure taken from those sources rather than estimated. Anything we could not verify is not in the piece. Corrections run dated at the top — how we handle them · editorial policy.