A cat with glasses gazing into the distance on a tropical beach, depicted in black, white, and gold. Perfect for the early retirement calculator page.

So, you want to retire early but don’t know where to start? You’re in the right place. With the Money Milestones early retirement calculator, you can work out:

  • Your FIRE number. This is the amount of money you’ll need to retire.
  • Your time to FIRE. This is how long it will take you to get there.
  • How your FIRE pot grows with time!

What is financial independence, retire early (FIRE)?

The FIRE movement is a lifestyle approach where people aim to reach financial independence and retire early. The idea is to save a large share of your income and invest it, often in the stock market.

Over time, this approach can help grow into a pot of money that lets you stop working years before the traditional retirement age. Want more details? Check out my realistic guide to financial independence and early retirement.

There’s more than one way to approach FIRE. The right path depends on your income, lifestyle, and goals. To learn more, check out my article on the different types of FIRE.

How to use the early retirement calculator

It’s simple. Just enter the following details:

  • Starting amount (£). This is the money you’ve already saved in your FIRE pot. Don’t include your emergency fund or other savings pots, such as a home deposit. Not sure what an emergency fund is? Check out my ultimate guide to emergency funds.
  • Monthly savings (£): This is the amount you’ll add to your FIRE pot every month. As a guide, many FIRE followers aim to save at least 50% of their income.
  • Growth rate (%): This is your expected annual return. Try different values to see how your FIRE timeline changes. Just remember: returns aren’t guaranteed! If you’re unsure, use typical values between 4% and 7%.
  • Target income (£): This is the annual income you want in your first year of retirement. After that, the calculator adjusts for inflation. For example, if inflation is 3%, your second-year income will be 3% higher than your first.

Early retirement calculator: find out when you can retire

 
 
Money Milestones

Important considerations

  • 4% rule. This calculator is based on the 4% rule. This rule suggests that you can safely withdraw 4% of your FIRE pot’s value in your first year of retirement, then increase the amount each year to keep up with inflation (but not more!). It’s important to note that economists have debated whether the 4% rule holds true for early retirement.
  • Compound interest. This calculator uses compound interest, meaning interest is earned on both your initial amount and the accumulated interest. Be sure to understand the difference between compound and simple interest, as they affect your returns differently.
  • Monthly compounding. The growth rate in the calculator represents an annual return, but it assumes monthly compounding. If you want to explore how your investments could grow over time, check out my savings and investments growth calculator.
  • Currency. Although the calculator uses sterling pounds (£) because this is a UK-based website, you can use any currency. The math is the same!
  • Debt considerations. If you have high-interest debt, it may be wise to focus on paying off debt before building your FIRE pot. For confidential advice, you can reach out to the National Debtline.