Whether you’re new to the FIRE movement or a seasoned veteran, there is a FIRE calculator for you. I’ve scoured the internet high and low to determine the 3 BEST financial independence retire early calculators.
I personally use these calculators to ensure I’m on track to hit my financial independence number on my desired time horizon. Anytime our income or expenses change I like to re-run the numbers. They keep my wife’s eyes from glazing over.
I have found 3 different FIRE calculators for you to use. The first provides a new perspective, the second is very detailed and the third provides an easy to understand format.
FIRE Calculator #1: FIRE the Family
You read that right. I have my own FIRE calculator. This Financial Independence Retire Early (FIRE) Calculator is intended to give you a visual of your current and projected retirement situation.
By understanding where we are presently at compared to where we would like to be, we can make more intelligent, data-driven financial decisions to get there.
A) If your “Future Value” number is lower than your “FIRE Number,” then you’re not meeting your financial retirement goals. If that’s the case, I recommend visiting our page HOW TO FIRE.
B) If your “Future Value” number is higher than your “FIRE Number,” then you’re likely on track to meet your financial retirement goals and you may be able to decrease your time to retirement. If that’s the case, I recommend you sharing this FIRE Calculator with someone you know. You might change their life.
FIRE Calculator #2: Engaging Data
The Early Retirement Calculator/FIRE Calculator by Engaging Data is my favorite FIRE calculator on the internet. It’s extremely robust in the data it collects to make a determination on your early retirement age.
See the FIRE calculator below that I inputted dummy data into:
If you hover over each field you will see a description for the number than belongs in the field. This is great for learning purposes and helps broaden your FIRE terminology. There are several drop down menus in this FIRE calculator that display a different visualization on the same data you enter.
Monte Carlo Simulation for FIRE
A Monte Carlo simulation is best described as a risk management technique to take into account the financial uncertainty of return on investment. A Monte Carlo simulation helps visualize the potential outcomes on the high end and low end of the bell curve.
FIRE Calculator #3: Financial Toolbelt
This FIRE calculator by Financial Toolbelt is a refreshing way to input your financial data. A text-based paragraph flows nicely and allows for quite a bit of adjustment. When you submit the query it actually kicks out quite a bit of data with a nice interactive graph.
I understand this calculator may not be as powerful as some of the others out there, but I like the accessibility and ease of use for newcomers to the concepts of the FIRE movement.
Retirement Planning Assumptions
When working with these financial independence retire early (FIRE) calculators you will have input fields that will ask about assumptions. An assumption is essentially the ecosystem in which your calculation is ran. It’s the economic weather, the lay of the land for the next 10-30 years so to speak.
Common retirement planning assumptions:
Investments will historically return 8% annually
Inflation will run about 3% annually
3-4% annual withdrawal of your retirement savings
Social Security will exist in some form
Additional FIRE Resources
I have curated a list of the tools and websites I strongly recommend for anyone on the financial independence journey. FIRE RESOURCES
What FIRE Calculators Do You Like?
As interested as I am in bringing you the best FIRE articles on the internet, I’m equally as interested in the tools that make you successful. What FIRE calculators have you used that you prefer?
I would be happy to add them to this post and grow it to a point where it’s the only place for the FIRE community to find the right financial calculator for their application.