FIRE Types Explained

Lean FIRE targets early retirement on 60% of your current annual expenses. It assumes you will significantly cut spending — eliminating discretionary costs, downsizing, or moving to a lower cost-of-living area.

Target = (annualExpenses × 0.6) ÷ SWR

At the default 4% SWR and $40,000/yr in expenses, the multiplier is 0.6: $24,000 ÷ 0.04 = $600,000.

The Regular FIRE target is the baseline; Lean FIRE is 60% of that. If 60% of your current expenses is still enough to cover housing, food, healthcare, and essential needs, Lean FIRE is achievable significantly earlier than Regular FIRE.

Regular FIRE(also called "Traditional FIRE") replaces your current lifestyle exactly — 100% of your annual expenses drawn from your portfolio. It is the baseline against which Lean, Fat, Coast, and Barista are all defined.

Target = annualExpenses ÷ SWR

This is the famous "25× rule" at a 4% SWR: spend $40,000/yr → need $1,000,000. Source: the Trinity Study (1998).

At the defaults: $40,000 ÷ 0.04 = $1,000,000. Monthly passive income at retirement: $3,333/mo.

Related types: Lean FIRE (60% of this), Fat FIRE (150%), Coast FIRE (discounted seed amount), Barista FIRE (50%).

Fat FIRE is retirement with 150% of your current annual expenses, providing room for higher discretionary spending, travel, healthcare costs, or simply a larger safety margin.

Target = (annualExpenses × 1.5) ÷ SWR

At the defaults: $60,000 ÷ 0.04 = $1,500,000. This is 1.5× the Regular FIRE target.

Fat FIRE is pursued by people who prefer not to cut spending in retirement — or who want a buffer for unexpected costs (medical, family support). The higher target generally means a longer accumulation phase.

Coast FIRE is unique: you do not need to accumulate the full Regular FIRE target now — you only need to reach the amount that, left untouched, will compound to the Regular FIRE target by your chosen retirement age.

CoastTarget = RegularTarget ÷ (1 + realReturn)^yearsToRetirement

In the default scenario (retire at 65, real return ≈ 3.9%): $1,000,000 ÷ (1 + realReturn)^35 = $263,555.

Once you hit your Coast FIRE number, you can stop making new investment contributions — your portfolio coasts to the finish line on its own. Many people continue working part-time or in a less stressful role during this phase. See also: Barista FIRE.

The monthly passive income shown ($3,333/mo) reflects the income your full Regular FIRE portfolio would generate at retirement — not the smaller Coast seed amount — since the portfolio grows to that level by design.

Barista FIRE(sometimes called "Semi-FIRE") is a hybrid: your portfolio covers 50% of your expenses, and part-time work or a side income covers the rest. The name comes from baristas at coffee chains who often receive employer health benefits even for part-time work.

Target = (annualExpenses × 0.5) ÷ SWR

At the defaults: $20,000 ÷ 0.04 = $500,000.

Barista FIRE reaches a lower target than Lean FIRE (50% vs. 60% of expenses), so you can stop contributing to investments sooner — but you will still need some earned income in early retirement. It is a popular choice for people who value leaving a stressful career but are not ready for full retirement.

Healthcare note: part-time work is often chosen specifically for employer-sponsored health benefits, which can significantly reduce the healthcare bridge cost before Medicare at 65.