FIRE Calculator
Estimate the portfolio needed for financial independence from annual spending.
Indicative FIRE number
£750,000.00
Illustrative estimate only. The withdrawal rate is an assumption, not a guarantee or financial advice.
v1.0 · Reviewed September 2026
How this is worked out
The target portfolio is annual spending ÷ the withdrawal rate, so 4% gives 25 times spending.
Worked example
- Annual spending £30,000
- Withdrawal rate 4%
30,000 ÷ 0.04
£750,000.00
Assumptions and limits
- The withdrawal rate is an assumption, not a guarantee. The often quoted 4% comes from historic United States data over a 30 year retirement and may not hold for a longer one or for other markets.
- Ignores tax, so the spending figure should be what you need after tax while the portfolio produces taxable income.
- Ignores the state pension and any other income, which reduce the portfolio you need.
- Illustrative only, and not financial advice.