Coast FIRE Calculator
Find out when you can stop saving and let compound interest do the work.
Your Coast FIRE Analysis
Your Coast FIRE Number is
$0
This is the amount you need invested today.
This is an estimate for informational purposes and does not constitute financial advice.
About the Coast FIRE Calculator
Coast FIRE is a milestone on the path to Financial Independence. It's the point where you have enough invested in your retirement accounts that, without contributing another penny, your investments will grow to support you by your planned retirement age. This calculator helps you find that magic number, so you know when you can stop saving aggressively and start focusing on work you love.
Formula Explained
The calculator works backward from your retirement goal to find the amount you need today:
- Retirement Nest Egg: First, it estimates your total required retirement savings using the 4% rule (Annual Expenses × 25).
- Time Value of Money: It then uses the future value formula in reverse to determine the present value. It calculates how much money, if invested today, would grow to your nest egg amount over your remaining working years.
How to Reach Coast FIRE Faster
Accelerating your journey to Coast FIRE gives you more freedom, sooner. Here's how:
Increase Your Savings Rate
The most powerful lever is saving more, especially early on. Automate your investments to make it effortless.
Maximize Tax-Advantaged Accounts
Prioritize contributions to accounts like a 401(k) or IRA to take advantage of tax breaks and employer matches.
Reduce Your "Big 3" Expenses
Focus on lowering your largest expenses: housing, transportation, and food. Small changes here have a huge impact.
Increase Your Income
Consider negotiating a raise, developing a new skill, or starting a side hustle to boost your savings power.
Frequently Asked Questions
What is a good cap rate? →
A 'good' cap rate is subjective and depends on the market, property type, and investor's risk tolerance. Generally, a cap rate between 4% and 10% is considered reasonable. Higher cap rates often indicate higher risk and potentially higher returns, while lower cap rates suggest lower risk and more stable investments.
What is Net Operating Income (NOI)? →
Net Operating Income (NOI) is the total income generated by a property after subtracting all operating expenses. Operating expenses include things like property taxes, insurance, maintenance, and property management fees. NOI does not include mortgage payments (principal and interest).
How is cap rate calculated? →
The formula for cap rate is: Net Operating Income (NOI) / Current Market Value of the Property. The result is expressed as a percentage. Our calculator performs this calculation for you automatically.
Does a cap rate include mortgage payments? →
No, the cap rate calculation does not include mortgage payments (debt service). It is a measure of the property's unleveraged rate of return, which allows for an apples-to-apples comparison between properties regardless of how they are financed.
What are typical operating expenses for a rental property? →
Typical operating expenses include property taxes, property insurance, maintenance and repairs, property management fees, utilities (if not paid by tenants), vacancy loss (estimated income lost from empty units), and sometimes HOA fees. These can often amount to 40-50% of the gross rental income.