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FIRE Calculator Canada | Financial Independence, Retire Early

Updated

FIRE Calculator

Use this calculator as part of a full early-retirement plan, not in isolation: compare the output with the early retirement in Canada guide, the coast FIRE calculator, and Barista FIRE in Canada. If the number feels too big, pair it with how much you should invest per month in Canada and the investment calculator to see what actually closes the gap.

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

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

Phase 2: Early Retirement (before 65)

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

Phase 3: Traditional Retirement (65+)

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