How the Lean FIRE Retirement Calculator Works
Lean FIRE (Financial Independence, Retire Early) is the pursuit of financial independence with a minimalist, lower-cost lifestyle. It's ideal for those who value freedom over material possessions and are comfortable living on $30,000-$45,000 annually.
Core Formula:
Lean FIRE Number = Annual Living Expenses / Safe Withdrawal Rate
Example: With $35,000 annual expenses and a 4% withdrawal rate:
$35,000 / 0.04 = $875,000 portfolio needed at retirement.
The calculator also projects your current savings growth using inflation-adjusted returns:
Projected Portfolio = Current Savings × (1 + real return)^years
where real return = (1 + investment return) / (1 + inflation) - 1
Lean FIRE often involves geographic arbitrage (living in lower-cost areas), minimalism, and a focus on experiences rather than possessions. This calculator helps you determine if you're on track for this lifestyle.