Disclaimer: This is a simplified simulation for educational purposes only. It does not include taxes, public pensions, or market volatility and is not financial advice. Consider speaking with a qualified financial advisor before making decisions.

What is FIRE?

FIRE stands for Financial Independence, Retire Early. It is a movement focused on saving and investing aggressively so you can retire well before the traditional retirement age. Achieving FIRE allows you to have the freedom to choose how you spend your time without relying on employment income.

Why is FIRE desirable?

Many people pursue FIRE to gain financial freedom and reduce stress related to work and money. By reaching your FIRE number—the portfolio size that can sustain your lifestyle you can prioritize personal goals, travel, start a business, or spend more time with family. FIRE combines smart saving, disciplined investing, and lifestyle planning.

How much do I need to retire early?

The amount you need depends on your annual expenses. A common guideline is the 25x rule, based on the 4% safe withdrawal rate. This means your FIRE number is roughly 25 times your yearly spending. For example, if you spend 32,000€ a year, your target portfolio would be around 800,000€.

How much do I need to retire in Spain?

In Spain, average early retirees might spend between 20,000€ and 35,000€ per year, depending on location, lifestyle, and family situation. Using the 25x rule, this suggests a FIRE number between 500,000€ and 875,000€. Southern Spain and smaller towns tend to be cheaper, while major cities like Madrid or Barcelona are higher cost.

What is the 4% rule?

The 4% rule is a retirement planning guideline. It suggests withdrawing 4% of your portfolio annually, adjusted for inflation, to make your savings last 30+ years. This is a helpful starting point but should be adjusted based on market conditions and personal circumstances.

How does this calculator help?

This FIRE calculator simulates how your savings grow over time, including partner contributions, inflation-adjusted withdrawals, and portfolio drawdown. It estimates whether you could reach your FIRE number and shows how long your portfolio might last after retirement. Use it to explore different scenarios and make informed planning decisions.