The shockingly simple math

Savings rate \u2192 years to FIRE

Your savings rate is the most important number in your financial life. It tells you \u2014 independent of your income \u2014 how far you are from walking away. Pick a rate to see the full breakdown.

Assuming 7% real return, 4% safe withdrawal rate, starting from zero
Savings rateYears to FIREBucket
5%52.2 yearsJust getting startedSee breakdown
10%41.7 yearsJust getting startedSee breakdown
15%35.3 yearsSolid middle groundSee breakdown
20%30.7 yearsSolid middle groundSee breakdown
25%27.1 yearsSolid middle groundSee breakdown
30%24.0 yearsSolid middle groundSee breakdown
35%21.4 yearsAggressive FIRE pathSee breakdown
40%19.0 yearsAggressive FIRE pathSee breakdown
50%15.0 yearsAggressive FIRE pathSee breakdown
60%11.4 yearsExtreme / high-incomeSee breakdown
70%8.3 yearsExtreme / high-incomeSee breakdown
80%5.4 yearsExtreme / high-incomeSee breakdown

Why this math works

Every year you save X% of your take-home pay is a year where you bank X%/(1-X%) years of freedom. Save 50% and each working year buys a full year of retirement. Save 75% and each working year buys three. The formula is income-invariant \u2014 a person earning $40K/yr and saving 50% reaches FIRE at the same time as a person earning $400K/yr and saving 50%.

That\u2019s why frugality compounds. Cutting $1 of annual spending both frees a dollar to invest and reduces the pile you need by 25x.

Savings Rate to FIRE — The Shockingly Simple Math | EasyFIRE