Coast FIRE Calculator

Coast FIRE (Financial Independence Retire Early) is when you have saved enough money that, even if you never invest another dollar, your investments will grow to support your retirement at your target retirement age. Use our free calculator to find out when you can reach Coast FIRE.

What is Coast FIRE?

Coast FIRE is a financial strategy where you save aggressively early in your career until you reach a point where your investment portfolio is large enough that it will grow to support your retirement without any additional contributions. Once you reach your Coast FIRE number, you can "coast" to traditional retirement age while only earning enough to cover your current expenses.

How to Use the Coast FIRE Calculator

Enter your current age and target retirement age
Choose a realistic retirement age based on your career plans and health expectations. While early retirement is appealing, consider that a later retirement age (60-70) allows more time for compound interest to work and requires a lower Coast FIRE number. However, don't plan too far ahead as longer time horizons increase uncertainty.
Input your current investment portfolio value
Include only investments intended for retirement: 401(k)s, IRAs, and other long-term investment accounts. Don't include emergency funds, house equity, or other non-investment assets. For accuracy, use the average of your portfolio value over the past few months to account for market fluctuations.
Specify your expected annual investment return
The historical average stock market return is around 7-10% before inflation. However, be conservative in your estimates - using a lower return (like 6-7%) provides a safety margin. Consider your asset allocation: more bonds mean lower expected returns but less volatility. Remember that past performance doesn't guarantee future returns.
Set your expected inflation rate
The historical average inflation rate is 2-3% in most developed countries. While inflation can vary significantly year to year, using a slightly higher rate (like 2.5-3%) in your calculations provides a safety margin. Higher inflation expectations will increase your required Coast FIRE number but make your plan more resilient.
Enter your desired annual retirement expenses
Be realistic about your retirement lifestyle costs. Include all expected expenses: housing, healthcare, food, transportation, leisure, and taxes. Consider that some expenses might decrease (commuting, work clothes) while others could increase (healthcare, travel). A common rule of thumb is to plan for 70-80% of your current income, but this varies based on your lifestyle goals.
Choose your withdrawal rate
The traditional 4% rule suggests you can withdraw 4% of your portfolio annually with a high probability of not running out of money over a 30-year retirement. However, consider using a more conservative rate (3-3.5%) if you plan for a longer retirement, want more safety margin, or expect lower future returns. A lower withdrawal rate means you need a larger portfolio but provides more security.
Interpret your results
The Coast FIRE number tells you how much you need invested today to reach your retirement goal without further contributions. The years to Coast FIRE shows how long until you reach this milestone at your current portfolio value. If the number seems daunting, consider adjusting your retirement age, expenses, or withdrawal rate. Remember that reaching Coast FIRE doesn't mean you should stop investing - continuing to save provides an extra safety margin.

Benefits of Coast FIRE

Reduced financial stress once you reach your Coast FIRE number
Knowing that your retirement is already secured can significantly reduce anxiety about your financial future. You no longer need to worry about maximizing your savings rate or whether market downturns will derail your retirement plans. This psychological benefit allows you to focus on enjoying the present while your investments work for you in the background.
Flexibility to pursue lower-paying but more fulfilling work
Once you reach Coast FIRE, you're free to prioritize job satisfaction over salary. You could switch careers, start your own business, work part-time, or take on meaningful non-profit work. This freedom comes from only needing to cover your current living expenses, as your retirement savings are already taken care of through investment growth.
Better work-life balance during your prime years
Instead of sacrificing your youth for aggressive savings, Coast FIRE allows you to enjoy a more balanced lifestyle in your prime years. You can spend more time with family, pursue hobbies, or travel, while maintaining a sustainable work schedule. This approach helps prevent burnout and promotes long-term happiness without compromising your financial future.
Clear milestone on the path to full financial independence
Coast FIRE serves as a meaningful intermediate goal between starting your financial journey and achieving full financial independence. It's often more achievable than traditional FIRE, requiring a smaller investment portfolio and fewer sacrifices. This milestone can motivate you to save aggressively early in your career while providing a clear signal for when you can shift priorities.
Protection against career uncertainties
Having your retirement secured provides a safety net against job loss, industry changes, or health issues that might affect your earning potential later in life. Even if you face career setbacks, your retirement savings will continue growing, giving you more resilience and adaptability in facing professional challenges.
Compound interest works harder for you
By front-loading your retirement savings, you give compound interest more time to work its magic. The money invested in your early years has decades to grow, potentially multiplying many times over. This approach can result in a larger retirement portfolio compared to steady contributions throughout your career, even with the same total amount invested.
Greater lifestyle flexibility
Coast FIRE provides the freedom to adjust your lifestyle as your priorities change. Whether it's taking extended breaks between jobs, relocating to a different city, or adjusting your work hours for family needs, you have more options available. This flexibility comes from breaking the traditional link between your current income and retirement security.

Frequently Asked Questions

What's the difference between Coast FIRE and traditional FIRE?

Traditional FIRE (Financial Independence Retire Early) requires saving enough to cover all your expenses through investment returns immediately. Coast FIRE only requires saving enough that will grow to support your retirement by a future date, while you continue working to cover current expenses. This typically means Coast FIRE needs a smaller initial investment than traditional FIRE.

Should I stop investing completely once I reach Coast FIRE?

While you technically could stop investing after reaching Coast FIRE, it's generally not recommended. Continuing to invest provides additional security against market downturns, changes in life circumstances, or unexpected expenses. Think of Coast FIRE as a minimum milestone rather than a final destination.

How does market volatility affect Coast FIRE calculations?

Market volatility can significantly impact your Coast FIRE journey. This calculator uses average returns, but actual market performance will vary year to year. It's wise to use conservative return estimates and regularly recalculate your numbers. Consider building in a safety margin by targeting a higher Coast FIRE number than strictly necessary.

Can I include my house equity in my Coast FIRE number?

Generally, you should not include home equity in your Coast FIRE calculations unless you plan to sell or downsize in retirement. The calculator assumes your investments generate returns that can be withdrawn without depleting principal. While real estate can appreciate, it typically doesn't provide the same liquid returns as investment portfolios.

What if I plan to receive Social Security or pension benefits?

If you expect Social Security, pension, or other retirement benefits, you can reduce your required annual retirement expenses by the amount of these expected benefits. For example, if you need $50,000 annually and expect $20,000 from Social Security, enter $30,000 as your annual retirement expenses in the calculator.

How do I account for healthcare costs in retirement?

Healthcare costs can be significant in retirement and tend to increase faster than general inflation. Consider adding a buffer to your annual retirement expenses specifically for healthcare. If retiring before Medicare eligibility (age 65 in the US), make sure to include the cost of health insurance in your expense calculations.

What if my Coast FIRE number seems unattainable?

If your Coast FIRE number seems out of reach, you have several levers to adjust: consider a later retirement age, reduce planned retirement expenses, increase your expected investment returns through more aggressive allocation (though this increases risk), or plan for a higher withdrawal rate. Remember that partial Coast FIRE, where you significantly reduce but don't eliminate retirement contributions, is also a valid strategy.

Should I adjust my investment strategy after reaching Coast FIRE?

Reaching Coast FIRE doesn't necessarily mean you should change your investment strategy. However, some people choose to reduce investment risk since they've already "won the game." Consider your risk tolerance and time horizon when deciding whether to adjust your asset allocation. Working with a financial advisor can help make this decision.