FIRE Calculator Canada
Calculate your Financial Independence, Retire Early number. Find when your portfolio can sustain your lifestyle forever.
Current finances & goals
What you'd spend per year in retirement
Rates & withdrawal strategy
Trinity Study suggests 4% for 30-yr retirements
Historical equity avg: ~7% after inflation
🎯FIRE Number
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⏱️Years to FIRE
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💸Monthly Passive Income
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Data sources & methodology — see full methodology · editorial standards
FIRE number is calculated as annual spending ÷ safe withdrawal rate (default 4%, per the Trinity Study). Portfolio projections use compound nominal returns; sequence-of-returns risk is not modelled — consider a financial planner for personalized advice.
Sourced from: Trinity Study (Bengen 1994)
How the FIRE calculation works
Financial independence is often framed as having an invested portfolio large enough to support planned spending without employment income. This calculator estimates a FIRE number by dividing annual retirement spending by the withdrawal rate you choose. For example, annual spending of $50,000 and a 4% withdrawal rate produces a $1.25 million target. It then projects your current portfolio forward using the annual savings and return assumptions to estimate when the target may be reached.
The portfolio chart is a simplified accumulation path. It illustrates the combined effect of starting assets, regular savings, and compound growth. The progress percentage compares your current portfolio with the calculated target, while the milestone table shows how that relationship could change over time. These outputs are useful for comparing plans, but they are not a retirement-income recommendation or a promise that a portfolio will sustain a particular lifestyle.
Key assumptions behind a FIRE number
The withdrawal rate is one of the most consequential inputs. A lower rate creates a larger target and may provide more room for uncertainty; a higher rate lowers the target but asks more from the portfolio. The commonly discussed 4% guideline came from research with specific historical market data, asset mixes, spending rules, and retirement lengths. It should not be read as a universal rule for Canadians, especially for retirements that may last several decades.
The return input is applied as a consistent annual rate, whereas real markets move unevenly. Inflation, investment fees, taxes in non-registered accounts, and the split among TFSA, RRSP, RRIF, pension, and taxable assets can materially affect spending power. The calculator also uses the spending amount entered today; consider whether it represents after-tax spending and whether it includes housing, travel, insurance, health costs, and irregular expenses. A nominal return assumption and future spending estimate should be considered together.
Interpreting the projected date
Years to FIRE is best treated as a checkpoint under the selected assumptions, not a fixed retirement date. Strong early market returns can advance a goal, while a downturn near retirement can have an outsized effect because withdrawals may begin when assets are lower. This sequence-of-returns risk is not captured by a smooth annual projection. The estimate also does not model job interruptions, pensions, CPP, OAS, inheritances, large purchases, or changes in family circumstances.
A FIRE target need not mean never earning another dollar. Some people plan part-time work, seasonal income, or a phased transition; others prefer a larger portfolio before leaving work. If you expect reliable income after retiring, model a lower spending need only when it is genuinely dependable. Similarly, make the annual savings input realistic after taxes, debt payments, and emergency savings. A plan that is sustainable month to month is usually more useful than an aggressive target that cannot be maintained.
Test scenarios and plan next steps
Run several versions of the plan rather than relying on one result. Start with your current savings rate, then test a lower return, a higher spending amount, and a more cautious withdrawal rate. You can also see how an increase in annual savings changes the timeline. Looking at a range helps identify which variable is most influential and gives you a basis for setting an adaptable savings goal rather than reacting to a single projected age.
Next, inventory your accounts, expected government benefits, pension entitlement, debt, insurance needs, and desired retirement spending. Revisit the numbers annually and after major life changes. Consider keeping near-term spending outside volatile investments and developing a withdrawal approach for taxable and registered accounts. A fee-only financial planner or tax professional can help connect a broad FIRE target with Canadian tax rules, benefit timing, and estate considerations. This calculator is an educational starting point, not individualized financial, investment, or tax advice.