FIRE calculator: how much you need to stop working
Three inputs, a few seconds: get a first estimate of the portfolio you need to live off your investments. Below you'll find how to read the result, and why it's probably higher than you expected.
How much do you need to stop working?
Enter only the essential information. In a few seconds, you'll get a first estimate of your FIRE number.
Inserisci i tre dati per vedere il tuo numero FIRE.
Enter the three details to see your FIRE number.
This is a quick simulation, not a financial plan. Your real FIRE number may be different once your actual situation, portfolio, taxes and other variables are considered. If you want to understand whether your target can be improved and how to get there, book a free, no-obligation call.
Book your free callWant to include your savings, monthly saving and state pension? Try the advanced simulator →
Want the full simulation? Try the FIRE Monte Carlo simulator: plan success probability, historical sequences, pensions and costs.
What is a FIRE number?
FIRE stands for Financial Independence, Retire Early. Your FIRE number is the invested portfolio that lets you withdraw what you need to live on each year without running out over the rest of your life.
The basic formula is simple: annual spending ÷ withdrawal rate. At 4%, that's the same as multiplying your annual spending by 25.
How the calculator works
- Monthly spending: what you need to live on today. The calculator multiplies it by 12.
- Inflation: spending is projected forward to the date you want to stop, assuming 1.5% inflation a year. The figure you see is in euros "of that moment", not today's.
- 4% withdrawal rate: the most widely used assumption. For very long horizons a lower rate can be more prudent (see the guide on the 4% rule).
- State pension excluded: the calculation assumes your portfolio covers everything. It's a deliberately conservative assumption.
An example
You're 35, spend €2,500 a month and would like to stop working at 55. In 20 years, with 1.5% inflation, the same lifestyle will cost about €40,400 a year. Divided by 4%, your FIRE number is about €1,010,000.
It looks like a huge number, and it often is. But it's also the starting point for working out which levers you can pull.
How to bring your FIRE number down
- Cut recurring spending. Every €100 less in monthly spending lowers your FIRE number by €30,000 (in today's money, at 4%). It's the most powerful lever of all.
- Factor in the state pension. From pension age onwards, the INPS pension covers part of your spending. Your portfolio only needs to cover the difference, so the real number can drop a lot: you can work it out with the FIRE simulator with state pension, and the method is in the guide on early retirement.
- Cut investment costs. A portfolio costing 2% a year instead of 0.3% works against you every single year, both while you save and while you withdraw. See the guide on fund fees.
- Consider a gradual FIRE. Even a small income in the early years, from part-time work or your own project, greatly reduces the capital you need during the most fragile phase.
What the calculator doesn't see
It's a quick estimate, not a plan. It ignores the savings you already have, taxes on withdrawals, your portfolio's specific returns, spending that changes over time, and the contributions you stop paying. These are exactly the things that make the real number different, sometimes for the better.
Try the tool: FIRE simulator with the INPS state pension. When you can stop, with savings, monthly saving, INPS pension and Coast FIRE.
Want your numbers, not an example's?
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Book a free callFor information and education only. This is not investment advice or a personal recommendation. Tax and pension rules change over time: always check current requirements with official sources (INPS, Agenzia delle Entrate).