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FIRE number for $40,000 a year
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$1,000,000
needed to spend $40,000/year ($3,333/month) at a 4% safe withdrawal rate
By withdrawal rate
| Withdrawal rate | Portfolio needed |
|---|---|
| 3% | $1,333,333 |
| 3.5% | $1,142,857 |
| 4% | $1,000,000 |
| 4.5% | $888,889 |
| 5% | $800,000 |
Lower rates are safer for retirements longer than 30 years. Pension or Social Security income reduces the amount you need: subtract it from spending before multiplying.
Years to reach $1,000,000 (5% real return)
| Annual savings | From $0 | From $100k |
|---|---|---|
| $20,000/yr | 26 years | 22 years |
| $30,000/yr | 21 years | 17 years |
| $40,000/yr | 17 years | 15 years |
| $50,000/yr | 15 years | 13 years |
| $75,000/yr | 11 years | 10 years |
| $100,000/yr | 9 years | 8 years |
Run your own numbers with the FIRE calculator or Coast FIRE calculator.
FAQ
How much do I need to retire on $40,000 a year?
Using the 4% rule you need about $1,000,000 invested (25 × $40,000). A more cautious 3.5% rate requires $1,142,857.
How long to save $1,000,000?
Starting from zero and saving $40,000 a year at a 5% real return takes about 17 years.
Other spending levels
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