Original planning table
FIRE number by annual spending
Compare FIRE portfolio targets for $30,000–$150,000 of annual spending at 3%, 3.5%, and 4% planning withdrawal rates.
Annual spending is the strongest direct input in a simple FIRE target. Every permanent $10,000 of portfolio-funded spending adds $250,000 at 4%, about $286,000 at 3.5%, or about $333,000 at 3%.
Use this table as a sensitivity map, not a verdict. Replace the example row with your own all-in spending and account separately for taxes, later income, fees, and large irregular expenses.
FIRE targets from $30,000 to $150,000 of spending
| Annual spending | 4% target | 3.5% target | 3% target |
|---|---|---|---|
| $30,000 | $750,000 | $857,143 | $1,000,000 |
| $40,000 | $1,000,000 | $1,142,857 | $1,333,333 |
| $50,000 | $1,250,000 | $1,428,571 | $1,666,667 |
| $60,000 | $1,500,000 | $1,714,286 | $2,000,000 |
| $80,000 | $2,000,000 | $2,285,714 | $2,666,667 |
| $100,000 | $2,500,000 | $2,857,143 | $3,333,333 |
| $120,000 | $3,000,000 | $3,428,571 | $4,000,000 |
| $150,000 | $3,750,000 | $4,285,714 | $5,000,000 |
What belongs in annual spending
- Housing, food, transportation, insurance, healthcare, travel, gifts, and taxes paid from withdrawals.
- Annualized irregular expenses such as vehicles, home repairs, technology, and major dental work.
- A realistic replacement for employer-paid benefits that disappear.
- Not savings contributions that end when retirement begins, unless they fund another goal.
Why lowering spending has double leverage
Lower spending reduces the target and may increase the amount you can invest while working. That is more controllable than assuming a higher return. But a budget that survives only through permanent deprivation is not a durable retirement plan.
Frequently asked questions
- How is a FIRE number calculated?
- Divide annual portfolio-funded spending by the planning withdrawal rate.
- Should taxes be included in spending?
- Include taxes that must be paid from portfolio withdrawals. The amount depends on account types and withdrawal order, which a simple table does not model.
- Why show three withdrawal rates?
- Withdrawal-rate choice materially changes the target. Showing 3%, 3.5%, and 4% makes that sensitivity visible rather than hiding it behind one default.
Keep planning
Educational illustration only — not financial, investment, tax, legal, medical, or insurance advice. Calculations use simplified assumptions and do not predict future returns or benefits.