How Much Do You Need to Retire? A Step-by-Step Method

1. Estimate spending. Start from today's budget; many retirees spend 70–90% of pre-retirement income. Include healthcare.
2. Subtract guaranteed income. Social Security (see your statement at ssa.gov), pensions, rental income.
3. Multiply the gap by 25 (4% rule) — or 28–30 for an early or cautious plan.
4. Adjust for inflation. Your target is in today's dollars; the inflation calculator converts it to future dollars.
5. Work back to a monthly saving. Use the retirement calculator or savings goal calculator.

Example: $60,000 spending − $24,000 Social Security = $36,000 gap × 25 = $900,000.

See ready-made tables: FIRE numbers by spending.