Enter Your Details
Your Results
Ready to Start Investing Toward Your FIRE Number?
Easy Equities makes it simple to invest in JSE ETFs, US stocks and more — starting from R1.
What Is a FIRE Number?
Your FIRE number is the total amount of savings and investments you need to retire early and sustain your lifestyle indefinitely — without ever running out of money. FIRE stands for Financial Independence, Retire Early, a global movement of people who choose to save aggressively so they can stop working decades before traditional retirement age.
The 4% Rule — Where Does It Come From?
The 4% rule comes from the Trinity Study, a landmark 1998 research paper by three professors at Trinity University in Texas. They analysed decades of US stock market and bond data and found that a portfolio invested in a mix of stocks and bonds could support a 4% annual withdrawal rate indefinitely — surviving even the worst historical market downturns, including the Great Depression.
In simple terms: if you withdraw 4% of your portfolio each year, historical data suggests your money will last 30+ years in most scenarios. Many FIRE practitioners use 3% or 3.5% for extra security, especially if retiring very early.
How to Calculate Your FIRE Number
The formula is simple: FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate
For example: R20,000/month × 12 = R240,000/year. At 4%: R240,000 ÷ 0.04 = R6,000,000. That is your target — R6 million in invested assets.
South African Considerations
South African investors need to account for rand depreciation, local inflation (historically 5–7%), and the JSE's long-term returns (roughly 10–14% nominal, 5–8% real). Many SA FIRE practitioners invest in a mix of JSE-listed assets and offshore exposure via TFSA and RA contributions for tax efficiency. Our SA FIRE calculator (RA + TFSA) handles these specifics in detail.
Frequently Asked Questions
The 4% rule states that you can withdraw 4% of your portfolio annually without running out of money over a 30+ year retirement. It comes from the 1998 Trinity Study. Many early retirees use 3–3.5% for added safety.
The calculator uses standard financial mathematics and your inputs. It cannot predict future market returns or inflation. Use it as a planning guide, not a guarantee. Conservative assumptions are always safer.
The 4% rule was based on US data. South African investors face higher inflation and currency risk. Many SA FIRE practitioners use 3–3.5% to be safe, and invest offshore to reduce rand risk.
Focus on what you can control: your savings rate and your expenses. Reducing monthly expenses by R2,000 reduces your FIRE number by R600,000 at a 4% rate. Small spending cuts have a massive impact on your target.