Coast FIRE Calculator 2025 – Retirement Milestones
Determine your Coast FIRE number—the point where you can stop saving for retirement and let compound interest do the rest.
Coast FIRE Calculator 2025 – Retirement Milestones
Introduction
Coast FIRE (Financial Independence, Retire Early) is a milestone where you have saved enough in your retirement accounts that, without contributing another penny, your investments will grow to support your retirement at a traditional age.
Once you reach Coast FIRE, you only need to earn enough to cover your current living expenses. This gives you the freedom to switch to a lower-paying job, work part-time, or take a sabbatical.
In this guide, we'll cover:
- How to calculate your Coast FIRE number
- The math behind "coasting"
- Pros and cons of this strategy
- 2025 investment assumptions
Inputs
- Current Age: Your age today.
- Retirement Age: When you plan to fully retire (e.g., 65).
- Annual Spending in Retirement: How much you need per year (in today's dollars).
- Current Invested Assets: Total in 401k, IRA, brokerage.
- Expected Real Return: Investment growth minus inflation (typically 5-7%).
The Formula
- Calculate FI Number:
Annual Spending / Safe Withdrawal Rate (e.g., 4%)- Example: $60,000 / 0.04 = $1,500,000
- Calculate Coast FIRE Number:
FI Number / (1 + Rate)^Years- Example: To have $1.5M in 30 years at 7% growth:
- $1,500,000 / (1.07)^30 ≈ $197,000
Result: If you have $197,000 invested today at age 35, you can stop saving for retirement completely and still have $1.5M at age 65 (assuming 7% real returns).
Benefits of Coast FIRE
- Reduced Stress: No pressure to max out 401k every year.
- Career Flexibility: Pursue passion projects that pay less.
- Lifestyle Balance: Enjoy your income today instead of deferring everything to age 65.
Risks to Consider
- Sequence of Returns Risk: A market crash early in your "coasting" phase can derail the plan.
- Lifestyle Inflation: If your spending needs increase significantly, your original FI number won't be enough.
- Healthcare Costs: Ensure your "coasting" job provides health insurance or pays enough to cover it.
FAQ
Q: Is Coast FIRE the same as Barista FIRE? A: They are related. Coast FIRE is the financial milestone (having enough saved). Barista FIRE is the lifestyle choice (working a low-stress job to cover expenses) often enabled by reaching Coast FIRE.
Q: What is a safe real return rate? A: 5-7% is standard. This accounts for ~10% stock market returns minus ~3% inflation. Being conservative (5%) is safer.
Related Tools
- Retirement Savings Calculator: /calculator/02-retirement-savings-calculator
- Compound Interest Calculator: /calculator/07-compound-interest-calculator
Conclusion
Coast FIRE changes the goalpost from "retire early" to "financial freedom now." Use the Coast FIRE Calculator to see how close you are to the point where your money starts working harder than you do.