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Calculator · FIRE & freedom
When will you reach financial independence?
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The calculator determines the FIRE number, the wealth at which a chosen withdrawal rate covers your annual expenses after tax, and models the Regular, Coast and Barista variants. Tax follows the choice of where you are taxed: the German model or your own rate on investment gains.
Set your target in your investment policy and follow its progress with your real portfolio.
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FIRE stands for Financial Independence, Retire Early. The FIRE number is the level of wealth at which a chosen withdrawal rate covers your annual expenses from the portfolio. The base formula is simple:
FIRE number = annual expenses ÷ withdrawal rate
Before tax, a 4% withdrawal rate gives the well-known 25 times annual expenses, 3.5% gives about 28.6 times and 3% about 33.3 times. The calculator works in the currency you choose with Currency; the math is the same in every currency.
The 4% figure comes from US retirement research such as the Trinity study, which looked at historical 30-year retirements. Retiring early usually means a longer horizon, 40 to 50 years, and analyses of such horizons, for example by Kitces and Pfau, discuss rates below 4%. The calculator offers 3.0%, 3.5% and 4.0%. These figures are context from historical research, not a promise that any rate will hold in the future; the choice remains yours.
Your expenses are what you spend. The portfolio also has to pay the tax on what it sells, so the calculator grosses your expenses up. It assumes that 70% of each withdrawal is gain (a flat assumption) and applies tax to that share.
Under Where are you taxed? you choose the model:
Tax share of each withdrawal = tax rate on gains × 70% FIRE number = annual expenses ÷ (1 − tax share) ÷ withdrawal rate
One rate on gains is a simplification. Tax systems differ in allowances, holding periods, account types and how gains are measured. If your situation includes tax-advantaged accounts, an average rate across your accounts may be closer to your case than the headline rate.
In Germany every sale realizes gains on which the flat tax on capital income (Abgeltungsteuer) is due. The calculator takes the 70% gain share, applies the 30% partial exemption (Teilfreistellung) for equity funds to it and uses an effective rate of 26.375% (25% plus the solidarity surcharge, more with church tax). Without church tax, about 12.9% of each withdrawal goes to tax. German tax is calculated in euros, so this model needs EUR as the currency.
At EUR 24,000 of annual expenses and a 3.5% withdrawal rate, the FIRE number is about EUR 685,714 before tax. With the German model and no church tax, the calculator arrives at about EUR 787,487, roughly 32.8 times annual expenses and about 15% more.
The saver's allowance (Sparerpauschbetrag) is not modeled, which makes the figure slightly cautious. More on the German case is in FIRE in Germany: the complete guide and The 4% rule in Germany.
Regular FIRE covers all expenses from the portfolio. Coast FIRE asks whether today's wealth is enough if it simply keeps compounding until a target age, with no further contributions; the calculator discounts your FIRE number back to today for that. Barista FIRE nets a part-time income against your expenses: the portfolio only has to carry the rest, which lowers the target. Both are explained in more depth in Coast FIRE explained and Barista FIRE.
Alongside the FIRE number, the calculator shows how many years it takes to reach it at your current savings rate and the age at which you would reach it. The portfolio grows month by month at a real return: the return you assume, netted of a fixed 2% inflation. That keeps every figure in today's purchasing power, so the FIRE number and your expenses are measured in the same money.
How long the money then lasts in retirement is a separate question, which the withdrawal plan calculator models year by year.
The model uses a constant return and does not model sequence-of-returns risk: a weak market early in retirement can shorten how long a portfolio lasts. The 70% gain share is a flat assumption and allowances are not modeled. All figures are in today's purchasing power after an assumed 2% inflation. The result is an orientation based on your inputs, not a forecast or a recommendation.
FIRE stands for Financial Independence, Retire Early: building enough wealth that withdrawals from the portfolio can cover your expenses. The FIRE number is annual expenses divided by a withdrawal rate, raised for the tax those withdrawals cost.
The calculator assumes 70% of each withdrawal is gain. Under Where are you taxed?, Elsewhere applies your Tax rate on investment gains (%) to that share, with no exemptions or allowances; 0 shows the result before tax. Germany applies the German model. Expenses are then grossed up so the amount left after tax covers them.
The German model applies 26.375% (more with church tax) to the 70% gain share after a 30% partial exemption, so about 12.9% of each withdrawal goes to tax. At a 3.5% withdrawal rate that gives about 32.8 times annual expenses instead of 28.6 times; at 4% about 28.7 times instead of 25.
The choice is yours. The 4% figure comes from US retirement research such as the Trinity study, based on historical 30-year retirements. Retiring early usually means a longer horizon, for which analyses often discuss lower rates. The calculator offers 3.0%, 3.5% and 4.0%; none of them is a promise for the future.
You have saved enough that growth alone carries your wealth to the FIRE number by a target age, with no further contributions. The calculator discounts the FIRE number back to today at the real return (after a fixed 2% inflation).
Calculate Kapitalertragsteuer (capital gains tax), Solidaritätszuschlag (solidarity surcharge), and Kirchensteuer (church tax) on your capital earnings.
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Calculate now →Which ETF type gives you more wealth after German taxes? Long-term comparison with Vorabpauschale, partial exemption, and saver's allowance.
Calculate now →Distribute your saver's allowance across banks and brokers without leaving allowance unused.
Calculate now →Project how starting capital and monthly contributions could grow over time. Choose your currency, assumed return, and horizon. A scenario before tax, not a forecast.
Calculate now →How much financial cushion do you need?
Calculate now →How much do you need for your property?
Calculate now →Calculate tax-free allowances and tax liability
Calculate now →What will your child's savings plan grow to?
Calculate now →What's missing for your retirement?
Calculate now →How long will your assets last?
Calculate now →What ongoing costs take from your wealth over the years.
Calculate now →How large a gain makes up a loss?
Calculate now →The amounts that bring your mix back to target.
Calculate now →How much capital does your dividend income goal need?
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Inputs
FIRE variant
Assumed return p.a.
Withdrawal rate
Your tax on gains when you sell. 0 shows the result before tax.
Your FIRE number (Regular)
Tax factor: 28.57× annual expenses
Tax at your own rate of 0% on the gain share of each withdrawal.
FIRE number
USD 685,714.29≈ 28.57× annual expenses (USD 24,000.00)
Simulation · not a return forecast or guarantee. Based on an assumed 7% return p.a.; actual performance may differ substantially.
Figures in today's purchasing power; the return is applied in real terms (after inflation).