Investment Calculators · Canada
FIRE calculator.
Calculate your FI number, savings rate, and years to retire early. Includes Lean, Coast, and Fat FIRE targets plus an optional Canadian CPP/OAS offset.
Your FIRE (financial independence) number is annual expenses divided by the safe withdrawal rate; at a 4% rate that is 25 times your yearly spending. This calculator finds that number, your savings rate and the years to reach it, with an optional Canadian CPP and OAS offset.
Source: CRA — Making withdrawals from an RRSP · As of
Cite this page: TNAADO Tools, “FIRE Calculator”, https://tools.tnaado.ca/calculators/investment/fire/
Inputs
Your FIRE plan
Fill the form and press Calculate.
The 4% rule and FIRE flavors
FI Number = annual expenses divided by your safe withdrawal rate (25x at 4%). Lean FIRE assumes 60% of normal expenses, Coast FIRE is the amount needed today to grow to FI by age 65 with no further contributions, and Fat FIRE assumes 125% of expenses for a more generous lifestyle.
Worked example: age 30, $40,000 of spending, $100,000 invested
Take a 30-year-old earning $70,000 and spending $40,000 a year, with $100,000 invested, a 7% expected return, 2% inflation and a 4% withdrawal rate. The calculator returns an FI number of $1,000,000 (40,000 ÷ 0.04), a savings rate of 42.9% ($30,000 a year) and 18.0 years to reach financial independence, at age 48.
| Scenario | FI number | Savings rate | Years to FI | Coast FIRE (today) |
|---|---|---|---|---|
| Default: $40,000 spending, 4% withdrawal | $1,000,000 | 42.9% | 18.0 (age 48) | $187,316 |
| Spending cut to $30,000 | $750,000 | 57.1% | 12.0 (age 42) | $140,487 |
| Withdrawal rate lowered to 3.5% | $1,142,857 | 42.9% | 19.0 (age 49) | $214,075 |
- Spending sets both sides. Cutting spending by $10,000 lowers the FI number by $250,000 and raises the savings rate, which together bring the date forward by 6 years.
- A more cautious withdrawal rate costs time. At 3.5% the FI number is $1,142,857 and the date moves 1 year later.
- Lean and Fat variants are 60% and 125% of your spending divided by the same rate: $600,000 and $1,250,000 here.
- Coast FIRE is what you would need invested today so growth alone reaches the FI number by 65: $187,316, which is 1,000,000 ÷ 1.0490235, using the real return of 4.90%.
Next steps: model a standard retirement date with the retirement calculator, add public pensions with the CPP and OAS calculator, or see how much of your income to save with the compound interest calculator.
How this is calculated
- FI number = annual spending ÷ withdrawal rate (25× spending at 4%). Lean FIRE uses 60% of spending, Fat FIRE 125%.
- Real return = (1 + expected return) ÷ (1 + inflation) − 1, so the projection is in today’s dollars. At 7% and 2% it is 4.90%.
- Years to FI: starting from your invested savings, each year the balance grows by the real return and your annual savings (income − spending) are added, until the balance reaches the FI number.
- Coast FIRE = FI number ÷ (1 + real return)(65 − age).
The CPP / OAS option only displays an assumed $15,000-a-year offset after 65; it does not change the FI number or the years to FI. The 4% withdrawal rate is a rule of thumb drawn from historical research, not Canadian regulation or a guarantee, and it ignores tax: money withdrawn from an RRSP is generally taxable when withdrawn (CRA, Making withdrawals from an RRSP, checked 1 October 2026). No market data feeds in: the returns and inflation are yours.
A planning illustration, not financial advice. Early retirement means more years of withdrawals, sequence-of-returns risk and health-care costs this model does not capture.
How spending and income change the time to FI
The same model, applied to the example above (age 30, $100,000 invested, 7% return, 2% inflation, 4% withdrawal rate), shows how much the gap between income and spending matters. The table counts whole years until the balance first reaches the FI number.
| Annual spending | Annual income | FI number | Yearly savings | Years to FI |
|---|---|---|---|---|
| $40,000 | $70,000 | $1,000,000 | $30,000 | 18 |
| $40,000 | $75,000 | $1,000,000 | $35,000 | 16 |
| $30,000 | $70,000 | $750,000 | $40,000 | 12 |
| $50,000 | $70,000 | $1,250,000 | $20,000 | 25 |
Raising income by $5,000 saves two years; cutting spending by $10,000 saves six, because it lowers the target and raises the savings at once. The last row shows the other side: spending $50,000 on the same income leaves only $20,000 a year to save against a $1.25 million target.
Where the 4% figure comes from, and its limits
The 4% rule comes from US studies that tested withdrawal rates against historical stock and bond returns over fixed retirement lengths, as reviewed in Wade Pfau’s 2011 paper, which says that 4 percent with inflation adjustments has historically been a relatively safe withdrawal rate in the United States. A retirement that starts at 40 may last 50 years, markets in other countries and eras differ, and fees and tax come out of the portfolio, so many planners test lower rates such as 3.5% or 3%. At 3% the FI number for $40,000 of spending is $1,333,333.
Canadian considerations
Money withdrawn from an RRSP is generally taxable when you take it out, so $40,000 of spending takes more than $40,000 of withdrawals from an RRSP. A TFSA, by contrast, does not tax withdrawals, and a non-registered account is taxed on income and realised gains. Public pensions also change the picture later: Service Canada lists a maximum CPP retirement pension at 65 of $1,507.65 a month in January 2026, and an average of $858.34 a month in July 2026, though your own amount depends on contributions and when you start.
Common mistakes
- Counting the home you live in as part of the portfolio you plan to withdraw from.
- Using a nominal return together with today’s-dollar spending; use a real return, as this tool does.
- Ignoring health-care costs and the first decade’s sequence-of-returns risk.
- Setting the FI number from current spending while expecting much lower spending later without a reason.
Who this is for
It is for savers who want a quick estimate of how far they are from financial independence and which lever (spending, income, return or withdrawal rate) moves it most. It is a planning illustration, not a forecast.
Sources
- Wade Pfau, Retirement Withdrawal Rates and Portfolio Success Rates (MPRA, 2011): the history of the 4 percent rule and its US-data basis (retrieved 2026-10).
- Canada Revenue Agency, Making withdrawals from an RRSP: RRSP withdrawals are generally taxable (retrieved 2026-10).
- Service Canada, CPP retirement pension: how much you could receive: maximum and average CPP pension amounts for 2026 (retrieved 2026-10).
TNAADO Inc. · Toronto
The 4% rule is a research finding, not a law
A FIRE target is normally annual spending times 25, which is simply the inverse of a 4% withdrawal rate. That figure comes from studies of historical US market returns over 30-year retirements. It described what would have survived; it did not promise what will. Applied to a Canadian portfolio, to a retirement longer than thirty years, or to a decade that happens to open with a crash, 4% is an optimistic assumption rather than a conservative one.
The mistake people make. Treating the multiple as the whole plan. Sequence-of-returns risk, meaning a bad first few years, does more damage than the average return does. The number also ignores tax completely: $40,000 of spending funded from an RRSP is a different target from $40,000 funded from a TFSA, because one is fully taxable on withdrawal and the other is not.
Frequently asked questions
What is the FI number and how is it calculated?
It is the portfolio size at which your yearly spending equals your chosen withdrawal rate times the portfolio: spending divided by the withdrawal rate. $40,000 at 4% is $1,000,000; at 3.5% it is $1,142,857.
Is the 4% rule safe for Canadians?
It is a rule of thumb, not a guarantee. It comes from studies of historical market returns over fixed retirement lengths and does not account for a longer retirement, a weak first decade, fees or tax. A lower rate, such as 3.5%, raises the target and lowers the risk of running out; the calculator lets you test both.
What is the difference between Lean, Fat and Coast FIRE?
Lean FIRE assumes you spend 60% of today’s spending ($600,000 here), Fat FIRE 125% ($1,250,000), and Coast FIRE is the amount you would need today so that, with no further contributions, growth alone reaches your FI number by age 65 ($187,316).
Does this include CPP, OAS or tax?
No. The CPP / OAS option shows an assumed $15,000-a-year offset but does not change the calculation, and tax is ignored. Use the CPP and OAS calculator for public pensions, and remember RRSP withdrawals are taxable income.
Why are the results in today’s dollars?
The calculator converts your expected return to a real return by removing inflation, so balances and spending stay comparable. If you want a nominal projection, set inflation to 0% and use your nominal return.
How much do I need for FIRE in Canada?
Take your annual spending and divide it by your withdrawal rate. $40,000 at 4% is $1,000,000, while $60,000 at 3.5% is about $1,714,286. Then adjust for tax on RRSP withdrawals and for CPP and OAS later in life.
Is the 4% rule based on Canadian data?
The original studies used US stock and bond returns over 30-year periods. Canadian investors face different markets, fees and currency effects, so the rule is a starting point to test, not a Canadian guarantee.
How is the savings rate calculated?
It is annual savings divided by annual income. In the example, $30,000 saved from $70,000 of income is a 42.9% savings rate. A higher rate shortens the time to FI both by adding more each year and by lowering the spending the portfolio must replace.
Disclaimer
Educational only. Returns and inflation will vary in practice. Sequence-of-returns risk in the first years of retirement is real; consider a cash/bond buffer or variable withdrawals.