FIRE Number

Your FIRE number is the total amount of invested assets you need to retire early and live off investment returns indefinitely. It is calculated by dividing your expected annual retirement expenses by your chosen safe withdrawal rate. The most common formula uses the 4% rule: FIRE Number = Annual Expenses × 25.

For example, if you plan to spend $50,000 per year in retirement, your FIRE number is $1,250,000. Once you reach this amount in invested assets (not including your primary residence), you are considered financially independent.

The FIRE number is not a fixed universal amount — it is entirely personal. Your FIRE number depends on your lifestyle choices, expected retirement duration, healthcare costs, and risk tolerance.