What is the FIRE number?

Your FIRE number is the amount of savings needed to retire early, typically 25 times your annual expenses. Based on the 4% safe withdrawal rate, this portfolio should sustain you indefinitely. If you spend $40,000/year, your FIRE number is $1,000,000.

How does FIRE work in Canada?

Canadians pursuing FIRE benefit from tax-advantaged accounts (TFSA, RRSP), universal healthcare, CPP, and OAS. These reduce both the amount you need to save and your expenses in retirement.

What is a good savings rate for FIRE?

A 50% savings rate lets you retire in about 17 years. Higher rates dramatically shorten the timeline: 60% = 12.5 years, 70% = 8.5 years. Most FIRE seekers aim for 50% or higher.

Should I fill RRSP or TFSA first for FIRE?

For early retirement, TFSAs offer more flexibility since withdrawals are tax-free and contribution room returns. Use RRSPs for high-income years and withdrawal in low-income early retirement years.

Does the 4% rule work in Canada?

The 4% rule is a reasonable starting point, but Canadians may be able to withdraw more due to CPP, OAS, and universal healthcare. Some Canadian FIRE studies suggest 4.5% or higher may be sustainable.

FIRE Calculator Canada | Financial Independence, Retire Early

FIRE Calculator

Calculate your Financial Independence, Retire Early number and timeline.

Your FIRE Number Formula

FIRE Number = Annual Expenses × 25

This is based on the 4% safe withdrawal rate — you can withdraw 4% of your portfolio annually with low risk of running out of money over a 30+ year retirement.

FIRE Number by Annual Expenses

Annual Expenses	FIRE Number	Monthly from 4%
$30,000	$750,000	$2,500
$40,000	$1,000,000	$3,333
$50,000	$1,250,000	$4,167
$60,000	$1,500,000	$5,000
$70,000	$1,750,000	$5,833
$80,000	$2,000,000	$6,667
$100,000	$2,500,000	$8,333

Years to FIRE by Savings Rate

Savings Rate	Years to FIRE
10%	51 years
20%	37 years
30%	28 years
40%	22 years
50%	17 years
60%	12.5 years
70%	8.5 years
80%	5.5 years

Assumes 7% real returns (after inflation) and starting from $0

Canadian FIRE Advantages

Tax-advantaged accounts

Account	2026 Limit	FIRE Benefit
TFSA	$7,000/year	Tax-free withdrawals, flexible access
RRSP	18% of income	Tax deduction now, low-tax withdrawal later
FHSA	$8,000/year	Tax deduction + tax-free for housing

Government benefits

Benefit	Starting Age	2026 Maximum
CPP	60-70	$1,364.60/month (at 65)
OAS	65-70	$727.67/month (at 65)

These benefits reduce your FIRE number. A couple receiving full CPP and OAS gets ~$40,000/year, reducing needed portfolio size by ~$1,000,000.

Types of FIRE

Type	Description	Target
Regular FIRE	Standard 25× expenses	Full retirement
Lean FIRE	Frugal living, <$40K/year	$1,000,000 or less
Fat FIRE	Higher spending, $100K+/year	$2,500,000+
Barista FIRE	Part-time work covers some expenses	Lower portfolio needed
Coast FIRE	Stop saving, let compound growth work	See Coast FIRE Calculator

Sample Canadian FIRE Timeline

Scenario: $100,000 household income, $50,000 savings/year (50% rate)

Year	Portfolio	Status
0	$0	Starting
5	$307,000	Building
10	$730,000	73% to Coast FIRE
15	$1,330,000	Approaching FIRE
17	$1,560,000	FIRE achieved

Assumes 7% real returns

Canadian FIRE Strategy

Phase 1: Accumulation

Max RRSP (get tax refund)
Reinvest RRSP refund into TFSA
Use FHSA if buying first home
Taxable account after registered full

Phase 2: Early Retirement (before 65)

Withdraw from TFSA (tax-free)
Convert RRSP to RRIF, withdraw at low rate
Part-time income if needed

Phase 3: Traditional Retirement (65+)

CPP begins (or delay to 70 for 42% more)
OAS begins
Reduced portfolio withdrawals needed