FIRE Calculator
Canada 2026
FIRE stands for Financial Independence, Retire Early — the goal of saving aggressively so your investments can cover all living expenses indefinitely. Calculate your FIRE number using the 4% Safe Withdrawal Rate, model your portfolio growth, and see exactly when you can retire — with CPP and OAS factored in.
Save 25× your annual spending so investments cover your life forever — no job required.
Withdraw 4% of your portfolio per year. Historically survives 95%+ of 30-year periods.
CPP and OAS reduce how much your portfolio needs to cover. This calculator factors both in.
Spending $60K/yr? Your FIRE number = $60K ÷ 0.04 = $1,500,000 invested.
Your FIRE plan
FIRE calculations use the 4% safe withdrawal rate from the Trinity Study. Actual returns, inflation, and tax treatment may differ. CPP/OAS amounts are estimates. Not financial advice. Terms →
The Trinity Study found that withdrawing 4% of your portfolio annually (adjusted for inflation) survived 95%+ of historical 30-year periods in US markets. For Canadian portfolios and longer retirements (40+ years), many FIRE practitioners use 3.5%. This calculator uses 4% as the base — adjust your spending to be conservative.
CPP at 65 averages ~$750/month. OAS adds another $742/month. Combined $1,492/month or $17,904/year means you need $447,600 less in your portfolio (at 4% SWR). This is why early retirees who can't access CPP until 60+ need a larger portfolio for the gap years.
In FIRE, tax management matters enormously. Draw from TFSA first (tax-free). Then carefully withdraw RRSP amounts to stay in lower brackets. Keep capital gains assets in non-registered accounts. A financial planner can optimize your drawdown order for minimum lifetime tax.
At a 50% savings rate, you can retire in about 17 years. At 75%, just 7 years. The magic of high savings rates is that they simultaneously grow your portfolio AND demonstrate you can live on less — both reducing your FIRE number and accelerating reaching it.
Frequently asked questions
What is the FIRE number formula?
FIRE number = annual spending ÷ 0.04. If you spend $60,000/year, you need $1,500,000 saved. CPP and OAS reduce the annual spending your portfolio needs to cover, which reduces your FIRE number — but only once those payments start (at 60 earliest for CPP, 65 for OAS).
What is a realistic return rate for Canadian investors?
Historical Canadian equity markets (TSX) have averaged roughly 7-8% annually over long periods. A balanced portfolio (60% equity, 40% bonds) has averaged around 5-6%. For planning purposes, many use 5-6% to be conservative, especially given current high bond yields included in the mix.
Is the 4% rule safe for a 40-year retirement?
The Trinity Study modelled 30-year retirements. For 40-50 year retirements typical of early retirees, many researchers suggest 3.5% (28.5× spending) or even 3.3% (30× spending) as safer withdrawal rates. This calculator uses 4% as a starting point — consider building in a buffer if you're planning to retire very early.
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FIRE in a Canadian context
Most FIRE (Financial Independence, Retire Early) content online is written for an American audience with American tax accounts and American withdrawal rules. The core math is the same, but several Canadian-specific details change the real numbers.
Why the 4% rule needs a Canadian adjustment
The 4% rule comes from the Trinity Study, which used historical U.S. market returns. Canadian markets have a different historical return profile — heavier weighting in financials and energy, lower in tech, and generally a bit more volatile with slightly lower long-term average returns than the S&P 500. Many Canadian FIRE planners use a more conservative 3.25–3.5% withdrawal rate to account for this, plus the fact that early retirees face a much longer withdrawal period than the 30 years the original study modeled.
The account order question
A Canadian pursuing FIRE typically builds wealth across TFSA, RRSP, and a non-registered (taxable) account, in roughly that priority for most income levels — TFSA first for tax-free growth, RRSP next for the deduction during high-earning years, then taxable investing once registered room is used up. In early retirement before CPP/OAS kick in, many Canadians draw down RRSP strategically in years when their income — and tax bracket — is otherwise low, which can mean paying very little tax on withdrawals during the gap years between retiring and age 65.
Healthcare — the variable that doesn't exist in U.S. FIRE math
A significant chunk of U.S. FIRE planning revolves around healthcare costs before Medicare eligibility at 65 — this simply isn't a factor for Canadians, who have provincial healthcare regardless of employment status. This means Canadian FIRE numbers can sometimes be lower than equivalent American calculations, since a major line item (private health insurance premiums) doesn't apply. Provincial health premiums and extended benefits (dental, vision) for things not covered by provincial plans are still worth budgeting for.