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Lean FIRE Calculator

See the number behind a frugal early retirement.

Result

$600,000.00
$2,000.00
$24,000.00

How it is calculated

The target portfolio is the yearly spending divided by the share of the portfolio you plan to withdraw each year: number = annual expenses ÷ (withdrawal rate ÷ 100). The tool also shows monthly budget = annual expenses ÷ 12. Annual expenses is what you expect to spend in a year in retirement, in dollars, after tax if tax applies. Withdrawal rate is a percentage, so type 4 for 4%. Expenses cannot be negative, and the rate must be above 0 and below 100: a rate of 0, a rate of 100 or more, or an empty field gives no result. A lower rate gives a larger number, so 3.5% asks for more than 4%. The result assumes the yearly spend stays flat and ignores inflation, taxes on withdrawals, investment returns and how long retirement lasts.

Worked example

Someone plans to live on 24000 a year and uses a 4% withdrawal rate. Step 1: convert the rate: 4 ÷ 100 = 0.04. Step 2: 24000 ÷ 0.04 = $600,000.00, the portfolio needed. Step 3: monthly budget = 24,000 ÷ 12 = $2,000.00. Using a more cautious 3.5% rate instead raises the target to $685,714.29 for the same spending, so about $85,700 more must be saved just for a safer assumption.

Try this example →

Common mistakes

  • Typing the withdrawal rate as 0.04. The field is a percentage, so that would mean 0.04% and a portfolio 100 times too big.
  • Entering only the monthly budget as annual expenses, which makes the target 12 times too low.
  • Leaving out costs that appear after retirement, such as health insurance, which keeps annual expenses unrealistically low.
  • Treating 4% as guaranteed. A longer retirement or a weak early market may call for a lower rate, which raises the number.
  • Entering a rate of 100 or more, such as 400. The tool shows no result, since a withdrawal rate that large would empty the portfolio in about a year.

About this calculator

Lean FIRE is the minimalist branch of the FIRE (Financial Independence, Retire Early) movement, targeting a smaller nest egg built around a frugal, tightly budgeted annual spending level rather than a comfortable or lavish lifestyle. Like other FIRE variants, the target portfolio is calculated by dividing desired annual spending by a chosen withdrawal rate (commonly modeled around the 4% rule), so keeping planned expenses low is what makes the Lean FIRE number achievable sooner than FatFIRE or standard FIRE targets.

People pursuing Lean FIRE typically prioritize reaching financial independence as fast as possible over maintaining a higher standard of living, often planning around a minimal but sustainable budget, geographic arbitrage (living somewhere with a lower cost of living), or a willingness to pick up part-time or freelance income (sometimes called Barista FIRE) rather than relying purely on portfolio withdrawals.

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