Taxes and account rules
Estimate how income tax, capital gains tax, retirement account access, and contribution limits affect spendable cash.
FIRE basicsFIRE number
FIRE number
United States FIRE Number Guide
Learn how to calculate your FIRE number for United States from annual expenses, safe withdrawal rate, investable assets, and risk buffers.
Regional assumptions to review in United States
A FIRE number is only useful when the local assumptions behind it are realistic. Use this checklist to adapt the calculator to United States before relying on the result.
Public pension and safety net
Decide whether social security, public pension, or other benefits are a backup, a delayed income source, or excluded from the base case.
Health insurance and care costs
Model insurance premiums, out-of-pocket medical costs, and long-term care separately, especially for early retirement years.
Housing and home equity
Treat a primary home differently from investable assets unless it can be sold, rented, downsized, or borrowed against.
Inflation, currency, and relocation
Check whether spending, income, and investments are exposed to different inflation rates or currencies.
Use local facts, not generic defaults
ChooseFIRE can structure the calculation, but it cannot know your tax filing status, benefits, insurance plan, family obligations, or local policy changes. Revisit the assumptions whenever your region, currency, or residency plan changes.
Short answer
Your FIRE number is the investable portfolio you need for financial independence. A common first estimate is annual expenses divided by a safe withdrawal rate.
FIRE number formula
FIRE number = annual expenses Γ· safe withdrawal rate
At a 4% withdrawal rate, the target is about 25 times annual expenses. At 3.5%, it is about 28.6 times expenses. Lower rates create more margin for long retirements.
Example
If annual expenses are 48,000 and the withdrawal rate is 4%, the FIRE number is 1,200,000. If you use 3.5%, the target rises to about 1,371,429.
How to calculate it
- 1
Estimate annual expenses
Use the lifestyle you want to fund after FIRE, including housing, taxes, insurance, health care, travel, and family costs.
- 2
Choose a withdrawal rate
Use 4% for a quick reference, then test 3.5% or 3% if the retirement period is long or spending is less flexible.
- 3
Compare investable assets
Count assets that can realistically produce returns or withdrawals. Treat home equity and locked assets carefully.
FIRE number FAQ
Is the FIRE number always 25 times expenses?
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Only when the withdrawal rate is 4%. A lower withdrawal rate requires a higher portfolio target.
Should I calculate with current or future expenses?
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Use the future lifestyle you want to sustain, then update the plan when inflation, taxes, or family needs change.
Does the FIRE number include emergency cash?
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Usually the FIRE number focuses on investable assets. Keep emergency cash as a separate buffer so withdrawals are not forced during market stress.
Planning note
The FIRE number is a planning estimate, not a guarantee. Real outcomes depend on market returns, inflation, taxes, fees, health costs, and policy changes.
Continue planning
Open the FIRE calculator
Enter assets, expenses, savings, and assumptions to estimate your target portfolio and timeline.
Learn FIRE concepts
Understand the 4% rule, Lean FIRE, Fat FIRE, and the limits of the model.
Review asset allocation
Compare your current asset mix with the return assumption in your FIRE plan.
Step 1: Set annual expenses
Model the lifestyle you want to sustain, not only your current minimum budget.