What savings rate do I need to retire early?

At a 50% savings rate, you can retire in roughly 17 years. At 65%, about 10 years. At 75%, about 7 years. The relationship is logarithmic — your savings rate matters far more than your income or investment returns for determining time to financial independence.

Formula

Years to FI ≈ log(1 + return × (1/savings_rate − 1)) / log(1 + return) — simplified: 50% SR ≈ 17 years, 60% ≈ 12, 70% ≈ 8.5, 80% ≈ 5.5

Example

Income $120k, spending $60k (50% SR): FIRE number = $1.5M. Investing $60k/year at 7% → reach $1.5M in ~14 years (less than 17 due to starting savings). Income $120k, spending $36k (70% SR): FIRE number = $900k. Investing $84k/year → reach $900k in ~8 years.

How it works in detail

The math works because your savings rate simultaneously increases what you invest AND decreases what you need (your FIRE number is based on spending, not income). Someone earning $200k but spending $180k (10% savings rate) needs $4.5M and will take 50+ years. Someone earning $100k but spending $40k (60% savings rate) needs only $1M and will reach it in ~12 years. Investment returns matter but are secondary: at 50% savings rate, the difference between 5% and 9% returns is only 3 years (20 vs 17). The MMM (Mr. Money Mustache) 'shockingly simple math' table shows this relationship clearly.

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