Coast FIRE (Financial Independence Retire Early) is when you have saved enough that compound growth alone will reach your FIRE number by traditional retirement age, without additional contributions. Once you reach Coast FIRE, you can stop saving for retirement entirely and work only to cover current expenses. This provides financial flexibility decades before full retirement.

How do I calculate my Coast FIRE number?

Calculate your full FIRE number (annual expenses × 25), then discount it back to present value using compound growth. For example, if you need $1,000,000 at age 65 and expect 7% returns over 20 years, your Coast FIRE number today is about $258,000. Once you hit this amount, you can stop retirement contributions and the account will grow to $1,000,000 by age 65.

What is the difference between Coast FIRE and Regular FIRE?

Regular FIRE means you have saved 25x annual expenses and can retire completely today. Coast FIRE means you have enough saved that compound growth will reach your FIRE number by traditional retirement age (typically 65), but you still work to cover current living expenses. Coast FIRE requires much less saved (often 30-50% of full FIRE) but you continue working until traditional retirement age.

Can I retire early with Coast FIRE?

Not fully. Coast FIRE means you must continue working to cover living expenses until traditional retirement age. However, it provides enormous lifestyle flexibility - you can take lower-paying but more fulfilling jobs, work part-time, take career breaks, or pursue passion projects without worrying about retirement savings. You are financially secure for the future but not financially independent today.

What happens if I keep saving after reaching Coast FIRE?

If you continue saving after Coast FIRE, you accelerate toward full FIRE and can retire earlier than traditional retirement age. Many people use Coast FIRE as a milestone rather than an endpoint. Reaching Coast FIRE reduces financial stress and provides options, but continuing to save even at a reduced rate can shorten your working years significantly.

What investment returns should I assume for Coast FIRE?

Conservative Coast FIRE calculations use 5-6% real returns (after inflation). Moderate calculations use 7% (historical stock market average). Aggressive calculations use 8-10%. Using conservative assumptions provides a buffer against market underperformance. If you assume 6% but markets return 8%, you will exceed your target or can retire earlier than planned.

Should I include Social Security in Coast FIRE calculations?

It depends on your age and trust in the system. Younger workers (under 40) should be cautious about relying heavily on Social Security, as benefits may change. Older workers (50+) can reasonably include estimated benefits. A conservative approach is to calculate Coast FIRE without Social Security, treating future benefits as a bonus that could allow earlier retirement or higher spending.

Coast FIRE Calculator

Calculate your Coast FIRE number. Find out when you can stop saving for retirement and let compound interest grow your investments to your target.

Calculator Inputs

Current Age

years

Target Retirement Age

years

Current Savings / Investments

Monthly Contributions

Expected Annual Return% annually

Historical S&P 500 average: ~10% (7% after inflation)

Desired Annual Retirement Income

Safe Withdrawal Rate% annually

The "4% rule" is a common guideline

Results

Not Yet at Coast FIRE

You're $40,494 away from Coast FIRE.

Progress to Coast FIRE0.0%

FIRE Number

Coast FIRE Number

Time to Coast FIRE

0.0 years

At age 31.3

At Retirement (Age 65)

Portfolio with Zero Contributions

Portfolio with Current Contributions

Full FIRE with Current Contributions

0.0 years

At age 50.5

Monthly Contributions Needed for Coast FIRE

To reach Coast FIRE by retirement age

PORTFOLIO GROWTH TO RETIREMENT

COAST FIRE (NO CONTRIBUTIONS)

WITH CONTRIBUTIONS

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What is Coast FIRE?

Coast FIRE (Financial Independence Retire Early) is a milestone where you've saved enough that compound growth alone will carry your portfolio to your full FIRE number by your target retirement age, even if you never contribute another dollar.

Think of it as financial "cruise control." Once you reach Coast FIRE, you can dramatically reduce how much you save for retirement, or even stop saving entirely. Your investments will compound and grow to support retirement without further contributions.

Why Coast FIRE Matters

Freedom to pursue passion projects or lower-paying meaningful work
Reduced pressure to maximize income and savings rate
Ability to take career risks without jeopardizing retirement
Option to work part-time or take extended sabbaticals
More money available for current lifestyle and experiences
Peace of mind knowing retirement is "handled" through compound growth

Understanding the Formula

Coast FIRE Number = FIRE Number ÷ (1 + r)^n

r = Expected annual return rate (as decimal)

n = Years until retirement

Example Calculation

Let's say your FIRE number is $1,000,000, you expect 7% annual returns, and have 20 years until retirement:

Coast FIRE = $1,000,000 ÷ (1.07)^20

Coast FIRE = $1,000,000 ÷ 3.87

Coast FIRE = $258,419

Once you've saved $258,419, it will grow to $1,000,000 in 20 years at 7% annual returns, even if you never add another penny. That's the power of compound growth!

What to Do After Reaching Coast FIRE

Lifestyle Options

•Switch to part-time work to enjoy more free time
•Take a lower-paying job that's more fulfilling
•Start a business or pursue entrepreneurship
•Take extended sabbaticals or travel breaks
•Move to a lower cost of living area
•Spend more on experiences in the present

Financial Options

•Continue saving to retire earlier than planned
•Build a larger safety margin for market volatility
•Increase retirement lifestyle beyond original plans
•Save for other goals like home purchase or education
•Build wealth to leave an inheritance
•Increase charitable giving and philanthropy

Frequently Asked Questions

What is Coast FIRE?

Coast FIRE (Financial Independence Retire Early) means you've saved enough that compound growth alone will grow your portfolio to your FIRE number by retirement age, without additional contributions. You can "coast" through life working just enough to cover current expenses without needing to save for retirement.

How is Coast FIRE different from regular FIRE?

Regular FIRE means you have enough money saved to retire immediately and live off your investments. Coast FIRE means you have enough saved that it will grow to your FIRE number by your target retirement age, even if you stop contributing. Coast FIRE typically happens years before full FIRE and provides lifestyle flexibility.

What is the Coast FIRE formula?

Coast FIRE Number = FIRE Number ÷ (1 + annual return rate)^years until retirement.

For example, if your FIRE number is $1,000,000, you expect 7% annual returns, and have 20 years until retirement: Coast FIRE Number = $1,000,000 ÷ (1.07)^20 = $258,419. Once you have $258,419 saved, compound growth will reach $1M in 20 years without additional contributions.

What happens after reaching Coast FIRE?

After reaching Coast FIRE, you can choose to: (1) Continue saving to reach full FIRE earlier, (2) Reduce work hours or switch to lower-paying but more fulfilling work, (3) Take career risks like starting a business, (4) Take extended time off for travel or sabbaticals, (5) Use income for lifestyle improvements instead of savings.

What assumptions does Coast FIRE rely on?

Coast FIRE assumes: (1) Consistent investment returns matching your expected rate (e.g., 7% annually), (2) You don't touch the invested money before retirement, (3) You continue to cover living expenses without dipping into savings, (4) Your retirement spending needs remain relatively stable, (5) The safe withdrawal rate (typically 4%) holds for retirement.

What are the risks of Coast FIRE?

Coast FIRE risks include: (1) Market volatility - returns may be lower than expected, (2) Sequence of returns risk if poor market years occur early, (3) Lifestyle inflation increasing retirement needs, (4) No margin for emergencies requiring portfolio withdrawals, (5) Extended life expectancy requiring more savings, (6) Healthcare costs rising faster than expected.

How much should I aim to save for Coast FIRE?

Your Coast FIRE target depends on: (1) Desired retirement income (multiply by 25 for 4% rule to get FIRE number), (2) Years until retirement, (3) Expected investment returns, (4) Current savings. Example: For $50,000/year retirement income, you need $1.25M at retirement. With 25 years and 7% returns, your Coast FIRE number is $229,000. Add a 10-20% buffer for safety.

Should I continue saving after reaching Coast FIRE?

Whether to keep saving after Coast FIRE depends on your goals. Continue saving to retire earlier than your target age, build a larger safety margin for market volatility, increase retirement lifestyle, or leave an inheritance. Stop or reduce saving to pursue passion projects, work less or more flexibly, enjoy life more in the present, or reduce stress about career advancement.

Important Considerations

Building Your Safety Net

•Maintain 6-12 months emergency fund separate from investments
•Consider a 10-20% buffer above your Coast FIRE number
•Plan for healthcare costs, especially if retiring early
•Account for inflation in your retirement income needs
•Diversify investments to manage risk

Common Pitfalls to Avoid

•Assuming unrealistic returns: Be conservative with return projections
•Ignoring sequence risk: Market downturns early on can derail plans
•Underestimating expenses: Account for lifestyle inflation over time
•Early withdrawals: Touching investments before retirement resets progress
•Forgetting taxes: Factor in taxes on growth and withdrawals

How This Calculator Works

This Coast FIRE calculator uses compound interest formulas and present value calculations to determine your Coast FIRE number and track your progress toward financial independence.

Calculation Steps

Calculate your FIRE number using the safe withdrawal rate: FIRE Number = Annual Retirement Income ÷ Withdrawal Rate
Calculate Coast FIRE number using present value: Coast FIRE = FIRE Number ÷ (1 + return rate)^years to retirement
Compare your current savings to Coast FIRE number to determine if reached
Project portfolio growth with zero contributions: Future Value = Current Savings × (1 + return rate)^years
Project portfolio growth with continued contributions using compound interest with annuity formulas
Calculate years to Coast FIRE if not reached using iterative monthly compounding
Calculate full FIRE age with continued contributions to show how much earlier you could retire

The calculator generates year-by-year projections showing your portfolio growth both with and without contributions, helping you visualize the power of compound growth and make informed decisions about your financial future.