Coast FIRE Calculator
Use our Coast FIRE Calculator to estimate when your savings will grow enough to retire early without further contributions. Plan your financial independence journey today.
How This Coast FIRE Calculator Works:
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Current Savings: How much money you’ve already saved.
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Monthly Savings: How much you contribute to savings every month.
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Rate of Return: The average annual return on your investment (usually based on stock market returns).
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Annual Expenses: Your current annual living expenses.
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Current Age: Your current age.
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Retirement Age Goal: The age at which you want to retire.
Calculation Logic:
The calculator uses the 25x rule for Coast FIRE, which states that in order to retire, you need 25 times your annual expenses saved. The calculator projects how your savings will grow over time with compounded interest, allowing you to see when you’ll hit your Coast FIRE goal.
Coast FIRE Goal:
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Coast FIRE means that you’ve saved enough money that your future savings growth, at a given rate of return, will be sufficient to support your retirement.
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Once you reach your goal, you can stop saving for retirement and let your investments grow on their own.
What is Coast FIRE?
Coast FIRE is a strategy for individuals aiming to retire early without needing to continue saving once they’ve reached a certain financial goal. The idea behind Coast FIRE is that you save a sufficient initial amount, and then let your investments grow with the power of compound interest. After that, you no longer need to contribute to your retirement savings.
How Does the Coast FIRE Calculator Help?
The Coast FIRE Calculator allows you to track how much your savings will grow over time with monthly contributions and an assumed rate of return. It calculates the point where you’ll have enough saved to retire comfortably using the 25x rule (saving 25 times your annual expenses).
What Does the Calculator Show?
After inputting your savings, monthly contributions, rate of return, and expenses, the calculator gives you a detailed projection of how your savings will grow until your target retirement age. It also provides the point at which you can stop contributing and let the investment compound.
Key Benefits:
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Set a target retirement age and see when you’ll achieve it
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Track progress towards early retirement with a visual chart
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Estimate when your savings are enough to stop contributing
FAQs:
Q: What’s the 25x rule?
A: The 25x rule is a simple guideline that states you need 25 times your annual expenses saved in order to retire. For example, if you need $40,000 a year, you need $1,000,000 saved.
Q: Can this calculator be used for other FIRE strategies?
A: Yes, this can be a useful tool for calculating Coast FIRE specifically, but it also provides insight into how savings grow for other FIRE strategies as well.
Q: Does this tool take into account inflation?
A: The basic version of this calculator does not account for inflation but can be adjusted to estimate inflation in more advanced calculations.