What is an FI number?
A Financial Independence (FI) number is used to determine WHEN you will be able to retire. The formula is: (FIRE number) = (annual spending) / 4%
4% is considered the safe withdrawal rate (SWR) or “the estimated percentage of your net worth that you expect to withdraw to cover your living expenses in retirement” (para. 10).
Calculator
Using the FI calculator:
STEP 1
Determine your FI number and FIRE age: Input fields on age (current and retirement), annual income (pre and post tax), annual spending (current and expected spending while in retirement), net worth, and assets. DON’T WORRY, getting the numbers for some of the fields is explained in more detail on the site just below the calculator!
STEP 2
Calculate!
Click HERE to begin calculating for your future FIRE retirement and learn more about your FI number.