Question 1

What is the FIRE Movement?

Accepted Answer

FIRE stands for Financial Independence, Retire Early. It is a financial movement dedicated to extreme savings and intentional investing to accumulate a nest egg large enough that investment returns fund all living expenses indefinitely.

Question 2

How do you calculate your FIRE number?

Accepted Answer

Your FIRE Number is calculated by dividing your annual expenses by your Safe Withdrawal Rate (SWR). Using the traditional 4% rule (from the Trinity Study), your FIRE Number equals 25 times your annual living expenses (FIRE Number = Annual Expenses × 25).

Question 3

What is the difference between Lean FIRE, Fat FIRE, and Coast FIRE?

Accepted Answer

Lean FIRE covers only basic bare-minimum necessities (usually 75% or less of average expenses). Standard FIRE covers your current lifestyle (100%). Fat FIRE provides an abundant, luxurious lifestyle (150%+). Coast FIRE is the milestone where your existing investments will compound to your retirement target without needing any additional contributions.

Question 4

What is the 4% Safe Withdrawal Rate (SWR)?

Accepted Answer

The 4% rule originates from the 1998 Trinity Study, which found that an investor holding a balanced portfolio of 50-75% stocks and 25-50% bonds could safely withdraw 4% of their initial portfolio value in year one (adjusted for inflation thereafter) with a 95%+ historical probability of their portfolio lasting at least 30 years.

Question 5

Why does this calculator use Real Returns instead of Nominal Returns?

Accepted Answer

Nominal returns do not account for inflation, which erodes purchasing power over decades. By calculating projections in real terms (adjusting nominal returns for inflation using the formula: (1 + nominal) / (1 + inflation) - 1), all projected balances represent today’s constant purchasing power.

Strategy	Expense Baseline	Lifestyle Goal	Target Profile
Lean FIRE	75% of Expenses	Minimalist, bare essentials, low-cost living	Fastest track to independence
Standard FIRE	100% of Expenses	Maintain exact current standard of living	Balanced approach using the 4% rule
Fat FIRE	150%+ of Expenses	Abundant travel, dining, luxury, no compromises	High earners seeking affluent freedom
Coast FIRE	Compounding Only	Cover current expenses; stop all retirement savings	Shift to lower-stress passion work early
Barista FIRE	Part-Time Income	Portfolio covers most expenses; side job covers gap	Semi-retired with health benefits

Personal & Timeline

Net Worth & Cash Flow

Market Assumptions

Compounding Trajectory

Year-by-Year Amortization Schedule

Understanding Financial Independence, Retire Early (FIRE)

The 5 Core FIRE Strategies Compared

Frequently Asked Questions About FIRE