A FIRE number converts annual lifestyle spending into an investable target. It is a planning estimate—not a promise that one portfolio size works in every market.
OUR METHODSources → assumptions → European context → verdict
The simple calculation
Multiply monthly spending by 12 to get annual spending, then multiply by 25 for a 4% starting estimate.
- €2,000 monthly × 12 = €24,000 annually
- €24,000 × 25 = €600,000 FIRE number
Use a range
A 3.5% withdrawal assumption requires about 28.6 times annual spending. Comparing 3.5% and 4% gives a useful range instead of false precision.
Personalise the inputs
Separate current spending from retirement spending and include tax, healthcare, housing, travel, irregular costs and a margin for uncertainty.
Educational illustration only—not personal financial, tax or investment advice. Tax, salary, broker and market figures change; verify current local information before acting.