Fat FIRE Calculator
Stop guessing how much is 'enough' for a luxury retirement. Calculate your exact Fat FIRE number based on real spending habits. Enter your details below to see your gap.
What is Fat FIRE?
Fat FIRE is a subset of Financial Independence, Retire Early (FIRE) that focuses on a buffer for luxury travel, expensive housing, or high-end hobbies. Unlike Lean FIRE, which relies on extreme frugality, Fat FIRE aims to maintain a high standard of living throughout retirement.
Why it matters: It prevents lifestyle inflation shock and ensures sustainability over a 50+ year retirement. For context, Lean FIRE might target $40k/year, while Fat FIRE targets $100k+/year.
Key Variables for Your Calculation
- Desired Annual Spending: The most critical driver. Include taxes and healthcare premiums in this estimate.
- Safe Withdrawal Rate (SWR): The % you withdraw annually. 4% is standard; 3.5% is safer. Fat FIRE often uses a lower SWR due to longer time horizons.
- Current Savings vs Income: Clarify that only invested assets count toward your starting number, not home equity (usually).
- Annual Return: Use conservative estimates (5-7% real return) to avoid overestimating growth.
How We Calculate Your Fat FIRE Number
Fat FIRE Number = (Annual Spending / SWR)
How it works:
The calculator uses the Target Formula to determine your total needs. It then applies the Projection Formula to calculate the Future Value of your current savings and contributions. We use a "Real" rate of return (inflation removed) to simplify future purchasing power comparisons.
How to Use This Tool
- Define your "Fat" lifestyle budget (be realistic about travel and housing).
- Input current investable assets (cash, stocks, bonds).
- Adjust your Safe Withdrawal Rate (3.5% is recommended for 50+ year retirements).
- Analyze the "Gap" output to see what adjustments are needed.
Understanding Your Fat FIRE Results
Analyzing the Savings Gap
Positive Gap (Surplus): You have reached Fat FIRE. Consider de-risking your portfolio or retiring early.
Small Negative Gap (< -10%): You are close. Minor adjustments (spending slightly less or saving a bit more) will close the gap.
Moderate Gap (-10% to -30%): Needs intervention. Increase your savings rate or push your retirement date back by 2-3 years.
Large Gap (> -30%): Your current path is insufficient. This requires aggressive savings, targeting higher returns (riskier), or a lifestyle downgrade.
Fat FIRE vs. Other FIRE Levels
| Type | Annual Spending | Net Worth Target (Approx @ 4%) | Lifestyle |
|---|---|---|---|
| Lean FIRE | $40k | $1.0M | Frugal living |
| Barista FIRE | $60k | $1.5M | Part-time work |
| Fat FIRE | $100k+ | $2.5M+ | Luxury/Travel |
What Changes Your Number?
- Sequence of Returns Risk: Retiring in a bear market depletes principal faster than retiring in a bull market.
- Healthcare Costs: Often underestimated in Fat FIRE planning; premiums rise faster than general inflation.
- Inflation: High inflation periods erode the purchasing power of fixed withdrawals over decades.
When to Use This Calculator
Late Career High Earners (Age 45+): If you are behind on savings but have a high income, this tool helps calculate the aggressive catch-up rate needed.
Tech Workers Facing Layoffs: Planning for potential early exits by determining if current liquidity supports a Fat FIRE lifestyle immediately.
Couples Aligning Visions: Ensuring both partners agree on the "Fat" lifestyle definition and the required savings target.
Limitations of This Tool
Frequently Asked Questions
Sources & References
About the Author
Nithya Madhavan
Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.