CAGR & FIRE Calculator (Financial Independence)

Compute nominal CAGR, Fisher real return after inflation, and Safe Withdrawal Rate (SWR) FIRE retirement corpus target.

Compound Annual Growth Rate (CAGR)
12.33%
Inflation-adjusted real CAGR: 9.06% p.a. (at 3% inflation)
Real Return (Fisher Eq.) 9.06%
FIRE Target (4% SWR) USD 1,200,000.00
Current FIRE Funding Ratio 26.7%
Total Growth Multiple 3.2×
Inputs
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
USD ($)
Starting investment value.
USD ($)
Ending or current portfolio value.
years
Number of years between beginning and ending values.
USD / yr
Expected annual spending in retirement.
% / yr
4% equals 25× annual expenses; 3.5% equals 28.6× annual expenses.
% / yr
Used to compute exact Fisher real return.
Results & Graph
Compound Annual Growth Rate (CAGR)
12.33%
Inflation-adjusted real CAGR: 9.06% p.a. (at 3% inflation)
Real Return (Fisher Eq.)
9.06%
FIRE Target (4% SWR)
USD 1,200,000.00
25× annual expenses
Current FIRE Funding Ratio
26.7%
Total Growth Multiple
3.2×

Nominal Growth vs. Real Purchasing Power Trajectory

Comparison of nominal compounded value and inflation-adjusted value
Graph 1 • Period-by-Period Stacked Breakdown Comparison of nominal compounded value and inflation-adjusted value
0 139.5k 279.1k 418.6k 558.1k Yr 0Yr 2Yr 4Yr 6Yr 8Yr 10
Graph 2 • Ending Horizon Composition Ring Proportional share at final period
HORIZON TOTAL 558.1k Nominal Value (USD) 320.0k (57.3%) Real Purchasing Power (USD) 238.1k (42.7%)
Graph 3 • Cumulative Growth & Crossover Trajectory Tracks total value vs. base principal across the full horizon
0 301.4k 602.8k Yr 0: 200,000 200.0k Yr 0 Yr 1: 221,398 Yr 2: 245,139 245.1k Yr 2 Yr 3: 271,485 Yr 4: 300,728 300.7k Yr 4 Yr 5: 333,193 Yr 6: 369,244 369.2k Yr 6 Yr 7: 409,284 Yr 8: 453,764 453.8k Yr 8 Yr 9: 503,185 Yr 10: 558,110 558.1k Yr 10
Summary: Nominal value grows from USD 100,000.00 to USD 320,000.00 (12.33% CAGR), while real value is 9.06% per year.
Summary: Growing from USD 100,000.00 to USD 320,000.00 over 10 years represents a nominal CAGR of 12.33% and a real purchasing-power return of 9.06% after 3% inflation. Based on USD 48,000.00 in annual expenses and a 4% safe withdrawal rate, your FIRE target corpus is USD 1,200,000.00.
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Formula & Mathematical Methodology: CAGR, Fisher Real Return & Safe Withdrawal Rate Identity

CAGR = (EVBV)1n − 1,   rreal = 1 + CAGR1 + Inflation − 1,   FIRE Corpus = Annual ExpensesSWR
CAGR = (EV / BV)^(1/n) − 1; Real Return = [ (1 + CAGR) / (1 + Inflation) ] − 1; FIRE Target = Annual Expenses / SWR
  • BV, EV: Beginning Value and Ending Value
  • n: Number of years
  • SWR: Safe Withdrawal Rate as a decimal (e.g., 0.04)

Rounding: Rates round to 2 decimal places.

Worked Example: $100,000 Growing to $320,000 Over 10 Years with $48,000 Annual Expenses

Evaluate a portfolio that grew from $100k to $320k in 10 years during 3% annual inflation, targeting $48k/year retirement spending at a 4% SWR.

  1. Nominal CAGR = (3.20)^(1/10) − 1 = 12.33% per year.
  2. Fisher Real Return = (1.1233 ÷ 1.03) − 1 = 9.06% per year.
  3. FIRE Target = $48,000 ÷ 0.04 = $1,200,000 (current $320k is 26.7% funded).
Result: Nominal CAGR is 12.33%, real CAGR is 9.06%, and FIRE target is $1,200,000.

Frequently Asked Questions

Why is the Fisher equation more accurate than subtracting inflation from nominal return?

Inflation erodes both your principal and the investment gains earned during the year. Dividing (1 + nominal) by (1 + inflation) captures this cross-product accurately.

Finance & Investing · Retirement & Portfolio Analytics

CAGR & FIRE Calculator (Financial Independence): inputs, method, and how to read the result

Compute nominal CAGR, Fisher real return after inflation, and Safe Withdrawal Rate (SWR) FIRE retirement corpus target.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Beginning Portfolio Value: Starting investment value.
  • Ending Portfolio Value: Ending or current portfolio value.
  • Time Period: Number of years between beginning and ending values.

What the calculation includes

With the default values shown, Compound Annual Growth Rate (CAGR) is 12.33%. The calculation follows CAGR, Fisher Real Return & Safe Withdrawal Rate Identity; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Beginning Portfolio Value from 100,000 USD ($) to 110,000 USD ($) changes Compound Annual Growth Rate (CAGR) from 12.33% to 11.27%. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses the exact Fisher equation rather than simple subtraction (CAGR − inflation) for real purchasing-power return.
  • CAGR measures point-to-point geometric return and does not account for intermediate deposits or withdrawals.

Scope: Global Check the assumptions and limitations against your situation before relying on the estimate.

More in Finance & Investing: Compound Interest Calculator, SWP Calculator (Systematic Withdrawal Plan), SIP Calculator (Systematic Investment Plan).