What is the 4% rule (Safe Withdrawal Rate)?

The 4% rule — derived from the Trinity Study — suggests that retirees can withdraw 4% of their portfolio in the first year of retirement, then adjust for inflation each subsequent year, with a high probability that the portfolio lasts 30+ years. In Nigeria's high-inflation environment, many planners prefer a more conservative 3–3.5% SWR. This calculator lets you choose your own SWR.

FIRE Calculator

Calculate your Financial Independence number — Lean, Standard, and Fat FIRE — and see whether your savings are on track to retire early. Figures are illustrative only.

Current Age

years

1855

Target FIRE Age

years

3065

Current Monthly Expenses

₦

30,0005,000,000

Current Savings / Investments

₦

050,000,000

Monthly Investment

₦

10,0003,000,000

Expected Annual Return

530

Expected Inflation Rate

530

Safe Withdrawal Rate (SWR)

Monthly Expenses at FIRE Age

₦1,627,412

🟡 Lean FIRE (50% expenses)₦244,111,849

🟢 Standard FIRE (100% expenses)₦488,223,698

🔵 Fat FIRE (200% expenses)₦976,447,395

Projected Portfolio at FIRE Age

Growth on Current Savings

₦9,356,334

New Contributions Growth

₦67,686,309

Projected Portfolio₦77,042,644

Disclaimer

This calculator is for educational and illustrative purposes only. It does not constitute financial, investment, or tax advice. Results are estimates based on the inputs you provide and may not reflect actual returns. Consult a qualified financial advisor before making any investment decisions.

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FIRE Number Formula

FIRE Number = (Annual Expenses × Multiplier) ÷ SWR

Where:

Annual ExpensesInflation-adjusted monthly expenses at FIRE age × 12

Multiplier0.5 (Lean) · 1.0 (Standard) · 2.0 (Fat)

SWRSafe Withdrawal Rate (e.g. 4% = 0.04) — the % of the portfolio you withdraw annually

Frequently Asked Questions

FIRE stands for Financial Independence, Retire Early. The goal is to accumulate enough invested assets that their growth and withdrawals can fund your lifestyle indefinitely, freeing you from the need to work. It combines aggressive saving, frugal living, and long-term investing.

The 4% rule — derived from the Trinity Study — suggests retirees can withdraw 4% of their portfolio in the first year of retirement, then adjust for inflation each year, with a high probability that the portfolio lasts 30+ years. In Nigeria's high-inflation environment, many planners prefer a more conservative 3–3.5% SWR. This calculator lets you choose your own rate.

Lean FIRE targets a frugal retirement at 50% of your current monthly expenses — sufficient to cover basics. Standard FIRE matches your current lifestyle (100% of expenses). Fat FIRE targets a comfortable, affluent retirement at 200% of current expenses. This calculator shows all three corpus targets so you can choose your path.

Nigeria's inflation has ranged between 10% and 30% in recent years. The calculator inflation-adjusts your monthly expenses to estimate what they will cost at your target FIRE age, and uses that future figure as the basis for all three FIRE corpus calculations. Using a realistic inflation rate is critical for accurate planning.

Ideally yes, but the projection is an estimate based on constant return and contribution assumptions. Real-world returns vary. Aim for your projected portfolio to meet or exceed your chosen FIRE target (Lean, Standard, or Fat). If there is a gap, increase monthly contributions, extend your FIRE age, or reduce target expenses.