25x rule
FIRE number calculation
Your FIRE number is the amount you need invested to live off withdrawals indefinitely, calculated as your annual expenses multiplied by 25 (the inverse of the 4% safe withdrawal rate). Someone spending $40,000 a year needs $1,000,000 invested; spending $60,000 needs $1,500,000.
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Try calculatorKey takeaways
04 · ideas- Your FIRE number = annual expenses × 25
- The 4% safe withdrawal rate is the foundation
- Cutting expenses is twice as powerful as earning more
- Coast FIRE lets you stop contributing early
FIRE = Financial Independence, Retire Early. Your FIRE number is the portfolio size where you can live off investment returns forever — without touching the principal.
The formula is simple:
FIRE Number = Annual Expenses × 25
Examples:- Spend $40,000/year → need $1,000,000
- Spend $60,000/year → need $1,500,000
- Spend $80,000/year → need $2,000,000
The 25x rule comes from the 4% withdrawal rate — historically, withdrawing 4% per year from a diversified portfolio has lasted 30+ years in 95% of historical scenarios.