How Much Do I Need to Retire?
Calculate Your Retirement Number Based on Spending, Returns & Withdrawal Rate
The amount you need to retire depends mostly on your yearly spending, your withdrawal rate, and how long your money needs to last. A common starting point is the 4% rule, which suggests you need about 25× your annual expenses.
But your retirement number also depends on where you live. Lower taxes and a lower cost of living can reduce annual spending, shrink the portfolio you need, and shorten your timeline by years.
How retirement numbers are usually calculated
The simplest version is: annual spending ÷ withdrawal rate = retirement number.
If you expect to spend $50,000 a year and use a 4% withdrawal rate, your target is about $1.25 million. If you expect to spend $80,000, the same rule gives you a target of $2 million.
That is why spending matters so much. A lower annual spending target does not just reduce your monthly needs — it directly lowers the size of portfolio required to retire.
Estimates the portfolio you need to cover your full lifestyle indefinitely at your chosen withdrawal rate.
Your FIRE milestone
At your current pace you could reach financial independence at age 68, in about 38 years, around 2064.
Your fastest path to financial independence
You're currently projected to reach your goal in 38 yrs. Here are the changes that would get you to financial independence fastest.
Moving to a lower-cost location reduces your living costs and the retirement target your portfolio needs to support.
1. Move to the lower-cost location
18 yrs soonerLower geographic costs can shorten the path materially.
2. Raise savings rate to 28%
9 yrs soonerMore of your income working for you sooner.
3. Lower spending by 10%
7 yrs soonerA smaller target means compounding has less ground to cover.
These are planning estimates, not guarantees. Small changes in return assumptions, taxes, and future spending can materially change the result.
Affiliate links — we may earn a commission at no cost to you. Recommendations are based on your FIRE mode, not paid placement.
What changes your retirement number most
Annual spending
Spending is the biggest driver. Lower annual expenses mean a lower retirement target.
Withdrawal rate
A lower withdrawal rate means you need a larger portfolio. A higher rate lowers the target, but with more risk.
Location
Where you live changes taxes, housing costs, and everyday spending, which can materially change your number.
Retirement age
Earlier retirement usually requires more caution because the portfolio needs to last longer.
Why location matters more than people think
Your retirement number is based on annual spending, not just investment returns. That means moving to a lower-cost city or lower-tax state can reduce the amount your portfolio needs to support every year.
In practice, a relocation decision can sometimes improve the math more than a small raise or a slightly higher investment return assumption.
What this calculator includes — and what it does not
Included
- Retirement number estimate
- 4% rule and withdrawal-rate planning
- Location-aware spending and tax comparison
- Timeline testing through the FIRE calculator
Not fully modeled
- Every tax edge case or deduction
- Sequence-of-returns risk in full detail
- Healthcare and long-term care with precision
- Guaranteed future returns
This is a planning tool, not a guaranteed retirement forecast.