FIRE Number
How much do you spend each year?
≈ $3,750 / month
$/yr
Withdrawal rate: 4%
%
Current assumption
4.0% withdrawal rate
25.0× yearly spending
About the 25× rule
A 4% withdrawal-rate assumption is mathematically equivalent to a portfolio target of 25 times annual spending: 1 ÷ 0.04 = 25. Lower assumed withdrawal rates produce larger targets.
This is a planning shortcut. Actual retirement outcomes depend on market returns, inflation, taxes, asset allocation, withdrawal timing, longevity, and changes in spending.