What is Coast FIRE and how is it calculated?

Coast FIRE is a financial independence milestone where you have accumulated enough money in your investment portfolio that, without contributing another single dollar, it will compound on its own to fund your traditional retirement by your target retirement age. The Coast FIRE formula is: Coast FIRE Number = Traditional FIRE Target / (1 + r)^n, where Traditional FIRE Target = Annual Retirement Spending / Safe Withdrawal Rate (e.g. 4%), r is the real (inflation-adjusted) annual investment return, and n is the number of years until retirement.

How is Coast FIRE different from Barista FIRE, Lean FIRE, and Traditional FIRE?

Traditional FIRE means quitting full-time work completely because your portfolio generates 100% of your living expenses. Lean FIRE is achieving full retirement on a minimalist budget (e.g., under $40,000/yr). Barista FIRE means working a low-stress part-time job to supplement portfolio withdrawals and obtain employer health benefits. Coast FIRE is unique: you still work to cover 100% of your current living expenses, but you NEVER need to save another penny for retirement, freeing up massive monthly cash flow to work less, change careers, or travel.

What investment return rate should I assume for Coast FIRE?

Historically, broad-market equities (like the S&P 500 or MSCI World index) have produced long-term annualized nominal returns of 9% to 10%. After factoring in long-term inflation of 2.5% to 3.0%, the historical real (inflation-adjusted) return has averaged approximately 6% to 7%. For conservative Coast FIRE planning, most financial independence analysts recommend modeling a real annual return of 5.5% to 6.5%.

What is the 4% Safe Withdrawal Rate (Trinity Study)?

The 4% rule originated from the landmark 1998 Trinity Study, which analyzed historical market returns across 30-year retirement horizons. It found that a retiree with a balanced portfolio of 50% to 75% equities could withdraw 4% of their initial portfolio value in year one, adjust subsequent withdrawals for inflation, and have a 95%+ probability of not running out of money over a 30-year retirement. For early retirees planning 40+ year retirements, conservative advisors often suggest a 3.25% to 3.75% withdrawal rate.

Can I take a sabbatical or switch careers once I hit Coast FIRE?

Yes! That is the primary appeal of Coast FIRE. Because your future retirement is already fully funded by compound interest, you eliminate the pressure to maximize savings. Many people use Coast FIRE to quit toxic corporate jobs, switch to non-profit or creative work, take 6- to 12-month sabbaticals, or transition into part-time consulting, since they only need to earn enough to cover current living expenses.

Do I include my primary home equity in my Coast FIRE number?

Generally, no. Your primary residence does not generate liquid income to pay for groceries, utilities, and travel in retirement (unless you plan to downsize, relocate to a lower-cost area, or execute a reverse mortgage). Coast FIRE calculations should only include income-generating investable assets—such as index funds, ETFs, RRSPs, TFSAs, 401(k)s, IRAs, and taxable brokerage accounts.

What happens if the stock market crashes right after I hit Coast FIRE?

Coast FIRE has built-in resilience because you are NOT actively withdrawing money from your portfolio during your working years—your portfolio is compounding over a multi-decade horizon. A market crash early in your coasting journey actually gives your investments more runway to recover. Furthermore, because you are still earning active income to pay your bills, you are never forced to sell depreciated shares at market bottoms.

How does inflation affect my Coast FIRE calculations?

Our Coast FIRE calculator uses real (inflation-adjusted) rates of return using the Fisher equation. This means all projected targets, annual spending figures, and portfolio values are expressed in today's purchasing power. For example, if your target retirement spending is $60,000/year, that represents $60,000 worth of groceries, housing, and goods in today's money.

Financial Independence Milestone • The Coast FIRE Formula

Coast FIRE Calculator

Calculate your exact Coast FIRE number. Discover the moment your invested portfolio will compound to fully fund traditional retirement without saving another single dollar. Downshift your career, escape burnout, and plan your coasting budget.

Coast Scenarios:

Your Timeline & Savings

Real $ (Inflation-Adjusted)

Current Age30 yrs

Target Retirement Age65 yrs

Compounding Horizon:35 Years to Compound

Current Invested Assets$145,000

RRSPs, TFSAs, 401(k)s, IRAs, and taxable brokerage index funds. (Exclude primary home equity).

Current Monthly Investment Contribution$1,400/mo

Once you reach Coast FIRE, this entire amount is discretionary cash!

Annual Spending in Retirement

In today's purchasing power

Safe Withdrawal Rate (SWR)

Standard 4.0% rule (Trinity Study)

Investment Return & Inflation Assumptionsreal: 6.34%/yr

Nominal Annual Return

S&P 500 / Global historical: ~9-10%

Annual Inflation Rate

Long-term central bank target: ~2-2.5%

Your Target Number Today

$174,381

compounds to full Traditional FIRE of $1,500,000 by age 65

On The Journey

Current Portfolio: $145,00083.2% Funded

Distance to Coast FIRE:$29,381

At your current monthly investment rate of $1,400/mo, you are on track to reach Coast FIRE in approximately 1.9 years (at age 31.9 with ~$197,222).

Required Monthly Savings to Hit Coast FIRE:

In 1 Year$2,531/mo

In 3 Years$896/mo

In 5 Years$570/mo

What Does Coast FIRE Actually Mean?

Unlike traditional FIRE where you quit working entirely, Coast FIRE means you stop saving for retirement. Because your existing nest egg has enough time to compound on its own, you only need to earn enough from active work to pay for your current everyday living expenses.

Theoretical Framework: The Coast FIRE calculation uses the Trinity Study 4% rule of thumb and compound growth models. All projections are in inflation-adjusted real purchasing power.

Disclaimer: This calculator is intended for educational, scenario planning, and financial modeling purposes only. It does not constitute professional investment, tax, or financial advice. Market returns fluctuate over time and past performance does not guarantee future results.

What is Coast FIRE? The Power of Front-Loading Retirement

In the Financial Independence, Retire Early (FIRE) movement, Coast FIRE represents one of the most liberating psychological and financial milestones you will ever achieve. While traditional FIRE requires saving 25 to 30 times your annual expenses so you can stop working entirely, Coast FIRE targets an earlier, highly pragmatic objective:

Coast FIRE is the point at which you have accumulated enough money in your investments that, even if you never contribute another cent toward retirement, your existing nest egg will compound over your remaining working years to fully fund your target retirement by your target retirement age.

Once you hit your Coast FIRE number, you can take your foot off the gas. You only need to earn enough active income to cover your immediate monthly living expenses. You no longer need to shovel $1,000, $2,000, or $3,000 every month into retirement accounts.

The Coast FIRE Mathematical Formula

Step 1: Calculate Your Traditional FIRE Target

Traditional FIRE Target = Annual Retirement Spending / Safe Withdrawal Rate (e.g. 4%)

For example, if you plan to spend $60,000/year in retirement at a 4.0% safe withdrawal rate, your traditional target is $60,000 / 0.04 = $1,500,000.

Step 2: Discount Back by Real Compound Growth

Coast FIRE Number = Traditional FIRE Target / (1 + r)^n

Where r is the real (inflation-adjusted) annual investment return (e.g., 6.34% from 9% nominal minus 2.5% inflation), and n is the number of years until retirement (Retirement Age - Current Age).

Coast FIRE vs. Other FIRE Flavors

Coast FIRE

Invested enough for retirement today. Stop saving; earn only enough from work to cover current living costs. Complete career flexibility.

Barista FIRE

Partial financial independence. Work part-time or seasonal jobs to cover a portion of expenses and health insurance while drawing from investments.

Traditional FIRE

Full financial independence. 25x to 30x annual expenses saved. Never need to work for money again for the rest of your life.

Fat FIRE

Abundant luxury retirement ($100k–$250k+/yr). Requires $2.5M to $6M+ in invested capital with zero budget compromises.

Real-World Coast FIRE Case Studies

Case Study 1: The 25-Year-Old Frontloader

Retire at 65 with $1.5M

• Current Age: 25 | Retire Age: 65 (40 yrs)

• Annual Retirement Spend: $60,000

• Target Portfolio: $1,500,000

• Real Return: 7.0%

Coast FIRE Number: Only $100,170!

Saving $100k by age 25 guarantees a $1.5M retirement without ever saving another penny!

Case Study 2: The 35-Year-Old Tech Downshifter

Escaping the 60-Hour Grind

• Current Age: 35 | Retire Age: 62 (27 yrs)

• Annual Retirement Spend: $75,000

• Target Portfolio: $1,875,000

• Real Return: 6.5%

Coast FIRE Number: $340,900

With $345k invested, she dropped her corporate job for 20-hour/wk freelance consulting.

Case Study 3: The 45-Year-Old Family

Funding College & Travel

• Current Age: 45 | Retire Age: 65 (20 yrs)

• Annual Retirement Spend: $70,000

• Target Portfolio: $1,750,000

• Real Return: 6.0%

Coast FIRE Number: $545,670

Having hit $550k, the parents redirect $1,800/mo into kids' education and family travel.

Frequently Asked Questions: Coast FIRE

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