Detailed FIRE Calculator — Financial Independence Canada

The FIRE movement (Financial Independence, Retire Early) means saving aggressively to achieve financial independence before age 65. The classic rule: your investments must be worth 25× your annual expenses (4% rule).

FIRE Calculator Canada

Current invested capital ($) Monthly savings ($) Expected annual net return (%) Annual retirement expenses ($) Annual inflation (%) Current age

Understanding the 4% rule

The 4% rule comes from the Trinity Study (1998): withdrawing 4% of your capital each year covers expenses for 30+ years with >95% probability of success, even in bear markets.

Quick calc: FIRE Capital = Annual Expenses × 25. Example: $40,000/yr × 25 = $1,000,000 required.

FIRE variants

Lean FIRE: $500,000 — frugal retirement ($20,000/yr expenses)
Regular FIRE: $1,000,000 — comfortable retirement ($40,000/yr)
Fat FIRE: $2,500,000+ — luxurious retirement ($100,000/yr+)
Coast FIRE: capital sufficient that grows alone until traditional retirement
Barista FIRE: part-time job + partial portfolio to complete income

Frequently Asked Questions

Is the 4% rule reliable in Canada?

Yes, the rule comes from US studies (Trinity Study) but applies to Canada given market correlation. Sequence of returns risk to manage.

How much to save for FIRE?

General rule: 50% savings rate to reach FIRE in 15-17 years. At 25% savings rate: ~30 years.

Is FIRE taxable in Canada?

Yes. RRSP withdrawals taxable as income. TFSA 100% tax-free. Non-registered: capital gains 50% taxable, eligible dividends with credit.

Should I include CPP/QPP and OAS in FIRE?

Yes at 65+. Before 60, assume zero pension. WealthWise integrates CPP/QPP/OAS in the full projection.

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