Question 1

What is the FIRE number and the 25x rule?

Accepted Answer

Your FIRE number is the portfolio size that can cover your yearly spending indefinitely. The common rule of thumb is 25× your annual expenses, based on the 4% safe-withdrawal guideline.

Question 2

What withdrawal rate does this assume?

Accepted Answer

About 4% a year — the level historical studies suggest a diversified portfolio can sustain over a long retirement. A more cautious 3–3.5% means a larger number (roughly 28–33× expenses).

Question 3

What return rate should I use?

Accepted Answer

Use a conservative real (after-inflation) return of around 5%, or a nominal ~7% if your expenses already grow with inflation. Lower assumptions give a safer, later target.

Question 4

Is FIRE realistic for me?

Accepted Answer

It depends mostly on your savings rate — the share of income you keep. The calculator shows how your current savings, yearly contributions and returns compound toward the target, so you can test how a higher savings rate pulls the date closer.

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