Early Retirement Calculator

Category: Retirement

- July 29, 2025

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Calculate when you can retire based on your current savings, income, expenses, and investment returns.

This calculator helps you determine your Financial Independence / Retire Early (FIRE) target and timeline.

Current Financial Situation

Current Age:

Current Savings:

Annual After-Tax Income:

Annual Expenses:

Retirement Goals

FIRE Method:

Expected Annual Expenses in Retirement:

Safe Withdrawal Rate (%):

Investment Assumptions

Expected Annual Return (%):

Expected Annual Inflation (%):

Annual Income Increase (%):

Annual Savings Increase (%):

Advanced Options

State Pension Age:

Monthly State Pension Benefit:

Include State Pension in calculations

Decimal Places:

Early Retirement Analysis

Financial Independence Target

£875,000

Total Savings Needed

Time to FIRE

15.3 years

Expected Age: 45

Current Savings Rate

42.9%

of after-tax income

Annual Savings

£30,000

Current amount

Safe Monthly Income

£2,916

in retirement

Net Worth Projection

Financial Milestones

Milestone	Target Amount	Date	Age	Years from Now

Detailed Projection

Year	Age	Annual Income	Annual Expenses	Annual Savings	Investment Return	Net Worth	Progress

Calculation Explanation

About Early Retirement & FIRE

FIRE (Financial Independence, Retire Early) is a movement focused on extreme savings and investment to enable early retirement. Understanding different FIRE approaches can help you choose the right strategy for your goals.

Different FIRE Approaches

Traditional FIRE: Typically uses the 25x rule (saving 25 times your annual expenses) based on the 4% safe withdrawal rate.
Lean FIRE: Aims for a more minimal lifestyle, often with annual expenses under £40,000 and typically uses a 20x multiple.
Fat FIRE: Targets a more luxurious retirement lifestyle with no significant expense reductions, often using a 30x or higher multiple.
Coast FIRE: Achieved when you have enough invested that, without any additional contributions and given enough time, your investments will grow to support your retirement.
Barista FIRE: A hybrid approach where you have enough saved to cover basic expenses, but still work part-time to cover discretionary spending.

Key FIRE Concepts

Savings Rate: The percentage of your income you save, the single most important factor in determining your time to financial independence.
Safe Withdrawal Rate: The percentage of your portfolio you can withdraw annually with minimal risk of running out of money (traditionally 4%, based on the Trinity Study).
The 25x Rule: The principle that you need approximately 25 times your annual expenses to retire safely (the inverse of the 4% rule).
Financial Independence (FI): The point at which your investments generate enough income to cover your expenses indefinitely.

Factors Affecting Your FIRE Timeline

Your savings rate (the most impactful factor)
Investment returns
Current net worth
Lifestyle costs and desired retirement expenses
Income growth and career progression
Major life events and their financial impact

Your Path to Early Retirement with the Early Retirement Calculator

The Early Retirement Calculator is a tool designed to help you understand when you can retire. It takes into account your current savings, income, expenses, and expected Investment returns. Using this calculator, you can map out your journey towards Financial independence and plan for a comfortable retirement.

Understanding the Basics of Financial Independence

Financial independence means having enough money saved to live without working. The concept is closely tied to the FIRE movement, which stands for Financial Independence, Retire Early. This movement encourages people to save aggressively and invest wisely to reach their retirement goals sooner. It’s not just about quitting your job; it’s about creating a lifestyle that supports your financial dreams.

Inputting Your Financial Information

The first step in using the calculator is to enter your financial details. You’ll need to provide your current age, savings, annual income, and annual expenses. These inputs form the foundation of your retirement plan. Make sure to be realistic about your numbers, as they will influence your results significantly.

Setting Your Retirement Goals

In this section of the calculator, you can define your retirement goals. There are various FIRE methods to choose from, such as:

Traditional FIRE: Save 25 times your annual expenses.
Lean FIRE: Aim for a minimalistic lifestyle.
Fat FIRE: Plan for a more luxurious retirement.
Coast FIRE: Invest enough to let it grow without additional contributions.

Choosing the right approach helps you pinpoint how much you need to save to achieve your retirement dreams.

Investment Assumptions Matter

Investment returns play a crucial role in your retirement plan. You’ll need to make assumptions about expected annual returns, inflation rates, and potential increases in your income and savings. By inputting these figures, the calculator can provide a more tailored estimate of when you can retire, taking into account the growth of your investments over time.

advanced calculations for a Better Projection

The calculator also offers advanced options to refine your results. You can include variables like social security benefits and adjust the number of decimal places for precise calculations. These features help create a more accurate picture of your financial future, ensuring that nothing important is overlooked.

Visualising Your Financial Journey

Once you input your information, the calculator generates a detailed report that includes milestones, projections, and a net worth chart. This visual representation helps you see your financial journey clearly. You can track your progress toward retirement and make adjustments to your plan if needed.

Learn More About FIRE Concepts

The Early Retirement Calculator isn’t just a tool; it’s also a way to learn about financial independence. It introduces key concepts like the savings rate, safe withdrawal rate, and the 25x rule, helping you make informed decisions. Understanding these principles can empower you to take control of your financial future.