Retirement & Savings

What Is FIRE?

FIRE (financial independence, retire early) is a movement built around saving a large share of income so that investment assets can eventually cover living expenses, allowing work to become optional earlier than a traditional retirement age. The target amount is often called a FIRE number.

The FIRE Number

A common rule of thumb multiplies annual expenses by 25, based on the so-called 4% rule from historical studies of retirement withdrawals. Annual expenses of 40,000 give a FIRE number of 1,000,000. The 4% figure is a historical research finding, not a guarantee.

Savings Rate

Within the FIRE approach, the savings rate — the share of income saved — is the main factor in how long it takes to reach the target.

🧮 Calculate It Yourself

Put FIRE (Financial Independence, Retire Early) into practice with these free calculators — no sign-up, nothing stored.

🔥 FIRE Number Calculator Financial Independence, Retire Early — find your number and timeline. Calculate → 🎯 Savings Goal Calculator Find out how much to save each month to hit your target. Calculate → 📈 Compound Interest Calculator See how your money grows with compound interest and regular monthly contributions. Calculate →

🔗 Related Terms

Compound Interest Net Worth Budget Real Rate of Return

More Retirement & Savings Terms

📖 Browse all glossary terms or explore all free calculators.

Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.