How the Fat FIRE Retirement Calculator Works
Fat FIRE (Financial Independence, Retire Early) is the pursuit of financial independence with a higher spending lifestyle. Unlike traditional FIRE, which focuses on modest expenses, Fat FIRE targets annual spending of $100,000+ to support luxury travel, second homes, fine dining, and other premium lifestyle choices.
Core Formula:
Fat FIRE Number = Desired Annual Retirement Expenses / Safe Withdrawal Rate
Example: If you desire $120,000 per year in retirement and use a 4% safe withdrawal rate:
$120,000 / 0.04 = $3,000,000 portfolio needed at retirement.
The calculator also projects your current savings growth to retirement using inflation-adjusted returns:
Projected Portfolio = Current Savings × (1 + real return)^years
where real return = (1 + investment return) / (1 + inflation) - 1
This helps you understand if you're on track for a luxurious retirement or need to increase savings.