How to Use
The Coast FIRE Calculator helps you determine the amount of money you need to invest today to achieve financial independence by your desired retirement age, without any additional contributions. Simply input your current age, desired retirement age, expected annual expenses in retirement, and other financial assumptions. The calculator will compute your Coast FIRE number—the amount you need to have invested today to “coast” to your retirement goal.
- Current Age: Your current age.
- Desired Retirement Age: The age at which you plan to retire.
- Annual Expenses in Retirement: The yearly amount you expect to spend during retirement.
- Safe Withdrawal Rate: The percentage of your retirement savings you plan to withdraw each year.
- Expected Annual Return Rate: The annual rate of return you expect from your investments before retirement.
- Advanced Options (Optional): Click to adjust for annual contributions and expected inflation rate.
Examples
Here are some sample calculations to illustrate how the Coast FIRE Calculator works:
| Current Age | Retirement Age | Annual Expenses | Withdrawal Rate | Return Rate | Coast FIRE Number |
|---|---|---|---|---|---|
| 25 | 65 | $50,000 | 4% | 7% | $68,580 |
| 35 | 60 | $40,000 | 4% | 6% | $126,662 |
| 40 | 65 | $60,000 | 3.5% | 7% | $210,326 |
Frequently Asked Questions
What is Coast FIRE?
Coast FIRE is a financial independence strategy where you save and invest enough early on so that your investments grow over time to support your retirement without additional contributions. Essentially, you let compound interest do the work for you after reaching a certain investment threshold.
How is the Coast FIRE number calculated?
The Coast FIRE number is the amount you need to have invested today to reach your retirement goal by your desired retirement age, assuming a certain rate of return and no additional contributions. It is calculated by discounting your target retirement savings back to the present value.
What is a Safe Withdrawal Rate?
A Safe Withdrawal Rate (SWR) is the percentage of your retirement savings that you can withdraw each year without running out of money during your retirement. The 4% rule is a commonly used guideline.
Why should I consider inflation?
Inflation reduces the purchasing power of money over time. By accounting for inflation, you ensure that your future retirement expenses are accurately estimated in today’s dollars, helping you plan more effectively.
