FIRE Target Calculator | SimpleReturns

Purpose and When to Use

Use this when you know yearly spending and want a target portfolio for Financial Independence.
Use this for rough planning before building a detailed tax and withdrawal plan.

Annual expenses: Total yearly spending target in retirement. Typical range: 25,000 to 120,000.
SWR: Safe Withdrawal Rate, a rule-of-thumb annual withdrawal percentage. Typical planning range: 3% to 4.5%.

Formula: target assets = annual expenses / (SWR / 100).
SWR is a planning heuristic, not a guarantee of success in all markets.
Taxes, sequence risk, inflation shocks, and changing lifestyle needs are not modeled.
Household structure and country-specific pension rules are not included.

Example: Annual expenses 40,000 and SWR 4%.

Result: FIRE target is about 1,000,000.

Is 4% always safe?

No. 4% is a historical reference point, and future outcomes can be different.

Should I use pre-tax or after-tax expenses?

Use the spending level you expect to fund from your portfolio after considering taxes.

Do I include one-time big purchases?

Usually no. Handle one-time goals separately so your base expense number stays realistic.

Now test whether you are already coast under these assumptions.