Coast FIRE is the point where the money you have already saved could grow, on its own, into what you need for retirement. You keep working to pay today’s bills, but you no longer have to set anything aside for later. Your savings “coast” the rest of the way.
It is compound interest run backwards. Instead of asking “what does this amount grow into?”, Coast FIRE asks “how much do I need today to grow into my target by a certain age?”
Step 1: the FIRE number
Coast FIRE starts from your FIRE number, the pot that could pay for your life in retirement:
FIRE number = yearly spending in retirement ÷ withdrawal rate
With a 4% withdrawal rate, someone who expects to spend 30,000 a year needs 30,000 ÷ 0.04 = 750,000.
Step 2: discount it back to today
Then you ask how much money, invested today and left alone, would grow into that number by your retirement age:
Coast number = FIRE number ÷ (1 + real return) ^ years to retirement
The real return is the yearly return after inflation. With 7% a year before inflation and 2% inflation, the real return is (1.07 ÷ 1.02) − 1, about 4.9%.
Worked examples
Same goal for everyone: 750,000 in today’s money by age 65, assuming a steady 5% a year after inflation.
| Age today | Years to 65 | Coast number |
|---|---|---|
| 25 | 40 | 106,534 |
| 35 | 30 | 173,533 |
| 45 | 20 | 282,667 |
The earlier you start, the smaller the number, because the money has more years to compound. At 25, about a seventh of the goal is enough; at 45, it takes more than a third.
When could you reach it?
The Coast number shrinks every year you get closer to retirement, while your savings grow. Coast FIRE is the first age where the two meet.
Say you are 30 with nothing saved and put away 1,000 a month, growing at the same 5% after inflation. Your balance passes the (shrinking) Coast number at around age 47. From then on, under these assumptions, the pot could reach 750,000 by 65 without another deposit.
With 750 a month, the same crossing happens at about 58. With 500 a month, it never happens before 65: at that rate, you would still be saving at retirement.
To check the formula by hand: a FIRE number of 1,500,000, a 7% real return and 35 years to go give a Coast number of 1,500,000 ÷ 1.07^35 ≈ 140,494.
What the number assumes
Coast FIRE turns a long, uncertain future into one tidy figure, so it is worth knowing what is folded into it:
- A steady return every year. Real markets go up and down. A few bad years after you stop saving could leave you short, and you might need to save again for a while.
- Your spending stays as planned. If retirement costs more than you expect, the FIRE number rises and so does the Coast number.
- The withdrawal rate holds. The 4% rule is a rule of thumb from past US data for 30-year retirements, not a promise. A lower withdrawal rate makes the FIRE number, and the Coast number, larger.
- No fees or tax. Fund fees lower the return every year, and tax can apply when you sell. Both make the real growth rate smaller.
- Nothing is taken out early. The money only coasts if you leave it alone.
That is why many people treat Coast FIRE as a milestone to check now and then, not as a finish line.
Coast FIRE and the other kinds of FIRE
- Full FIRE: the pot already covers your spending; work becomes optional.
- Barista FIRE: part-time work covers part of your costs while the pot covers the rest.
- Coast FIRE: work covers all of today’s costs; the pot only has to be left to grow.
Try it yourself
A dedicated Coast FIRE calculator is on its way. Until then, the compound interest calculator shows what a single amount could grow into: enter your savings as the starting amount, set the monthly saving to 0, and switch on inflation to see the result in today’s money. The formulas behind every number are in our methodology.
Educational content, not financial advice. The examples assume a steady return; real returns vary and past returns do not promise future ones.