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CalcYard / Glossary

FIRE (Financial Independence, Retire Early)

Saving aggressively to reach a portfolio that funds living costs indefinitely.

The core arithmetic: your FIRE number ≈ annual spending ÷ safe withdrawal rate. At 4%, that is 25× spending. Savings rate matters more than returns for how fast you get there.

Example: $48,000 spending ÷ 4% = $1.2M FIRE number.

FAQ

What is FIRE in simple terms?
The core arithmetic: your FIRE number ≈ annual spending ÷ safe withdrawal rate. At 4%, that is 25× spending. Savings rate matters more than returns for how fast you get there.