Financial independence target by expenses and withdrawal rate
FIRE target with $2.5K monthly expenses
With $2.5K in monthly expenses and a 4% withdrawal rate, the target is $750,000 and the estimated timeline is 11 years 4 months.
Key results
Expenses and contributions are assumed to stay constant in today's purchasing power.
- Target assets
- $750,000
- Estimated timeline
- 11 years 4 months
- Current progress
- 40%
FIRE assumptions
- Current assets
- $300,000
- Monthly contribution
- $1,500
- Monthly expenses
- $2,500
- Expected return
- 7%
- Inflation
- 2.5%
- Withdrawal rate
- 4%
Change the FIRE assumptions
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Calculator inputs
Preparing the calculator with default assumptions.
Results
Assumes your inputs remain constant and contributions rise with inflation.
- Monthly withdrawal supported today
- $1,000
- Remaining asset gap
- $450,000
- Inflation-adjusted return
- 4.39%
Target assets equal annual expenses divided by the withdrawal rate. Taxes, fees, and return volatility are not included.
FIRE calculation questions
How are target assets calculated?
Annual expenses are divided by the target withdrawal rate. With $2,500 in monthly expenses and a 4% withdrawal rate, the target is $750,000.
Why is the timeline shown in today's dollars?
Inflation can increase both future expenses and asset values. Removing inflation from the expected return lets the calculator compare your target and progress using consistent purchasing power.
What does it mean for contributions to rise with inflation?
The monthly contribution is treated as a constant amount in today's purchasing power. In practice, the nominal amount would need to increase with inflation to preserve that purchasing power.
Is a 4% withdrawal rate always safe?
No. It is a common starting point, not a guarantee. Retirement length, taxes, fees, asset allocation, and market volatility can all change a sustainable withdrawal rate.