Financial Independence (FIRE) Calculator

ATLAS Team · Updated November 2, 2026

Short answer

Financial independence means your investments can pay for your spending without a salary. A common rule of thumb is a portfolio of 25 times your yearly spending, which corresponds to withdrawing 4% a year. If you spend $40,000 a year, the target is $1,000,000. This calculator shows how many years it takes from your savings and contributions.

Yearly spending in retirement

Saved so far

Monthly contribution

Real return after inflation (%)

Withdrawal rate (%)

Your age (optional) (optional)

Target portfolio$1,000,000

Time to reach it31 years 4 months
Progress to the target2%

Year by year

Year	Balance	Of target
0	$20,000	2%
1	$33,302	3.3%
2	$47,285	4.7%
3	$61,983	6.2%
4	$77,433	7.7%
5	$93,673	9.4%
6	$110,745	11.1%
7	$128,689	12.9%
8	$147,552	14.8%
9	$167,380	16.7%
10	$188,222	18.8%
11	$210,131	21%
12	$233,161	23.3%
13	$257,369	25.7%
14	$282,815	28.3%
15	$309,563	31%
16	$337,680	33.8%
17	$367,235	36.7%
18	$398,302	39.8%
19	$430,959	43.1%
20	$465,286	46.5%
21	$501,370	50.1%
22	$539,300	53.9%
23	$579,171	57.9%
24	$621,081	62.1%
25	$665,136	66.5%
26	$711,444	71.1%
27	$760,122	76%
28	$811,290	81.1%
29	$865,076	86.5%
30	$921,614	92.2%
31	$981,044	98.1%
31.3	$1,001,522	100.2%

The 4% rule is a heuristic from US historical data over 30-year periods, not a guarantee. Longer retirements often use a lower rate. Taxes, fees and changes in spending are not included.

How to use the calculator

Enter your yearly spending in retirement (not your income).
Enter what you have saved and how much you add each month.
Choose the real return you assume (after inflation) and the withdrawal rate. 4% is the usual reference.
Read the target, the years to reach it and the year-by-year progress. Share the scenario with the page address.

The formula

Target = yearly spending ÷ withdrawal rate. At 4% this is spending × 25. The time to reach it comes from compounding your savings month by month at the real return you assume: balance next month = balance × (1 + real return ÷ 12) + monthly contribution.

Using a real return (after inflation) means all amounts are in today's purchasing power, so spending does not need to be adjusted each year.

Where the 4% rule comes from, and its limits

The rule is a heuristic from US research in the 1990s: William Bengen's 1994 article in the Journal of Financial Planning and the 1998 "Trinity study" by Cooley, Hubbard and Walz. They tested withdrawing 4% of the starting portfolio, adjusted for inflation, over retirements of about 30 years in US history. It does not guarantee anything.

It was built on US data and 30-year retirements. Early retirees with 40 or 50 years ahead often consider a lower rate, for example 3% to 3.5%.
Returns in the first years matter a great deal (sequence risk).
Taxes, health costs, fees and changes in spending are not included.
Pensions or other income would reduce the amount you need.

The levers you control

Savings rate. Saving a larger share of income both raises contributions and lowers the spending the portfolio must support.
Spending. Each $1,000 of yearly spending you remove lowers the target by $25,000 at 4%.
Time and returns. Compounding does most of the work in the later years. See the compound interest calculator.

Next steps

Build the habit with how to save money, choose what to hold with how to build a portfolio and, if you want income from companies, see what are dividends.

Frequently asked questions

What is the 4% rule?

A rule of thumb that says you can withdraw 4% of your portfolio in the first year, then adjust for inflation, and have a high chance of the money lasting 30 years in US historical data. It is not a guarantee.

What does FIRE stand for?

Financial Independence, Retire Early. You can pursue the first part without retiring early.

What real return should I use?

Try several, for example 3%, 5% and 7% after inflation, and see how sensitive the years are. None is a promise.

Does it include Social Security?

No. If you expect other income, reduce the spending the portfolio has to cover.

See this on any stock in ATLAS

Open a free account

Keep learning

More guides

See it on real stocks

Tools

Sources

ATLAS Team · Updated November 2, 2026 · How ATLAS calculates fair value · ATLAS track record

Educational content. Not investment advice. Past performance is not a guide to future results. Figures are illustrations from stated assumptions. Disclaimer