How Much Money Do You Need to Coast FIRE? A Step-by-Step Breakdown

What if you could stop saving for retirement—today—and still retire comfortably by 60?
That’s the promise of Coast FIRE. But here’s the million-dollar question (literally): How much money do you need to make that leap?

In this guide, we’ll break it down step-by-step—no spreadsheets, no jargon. Just clear, simple math and a free tool to help you run your own numbers.

Why Traditional Retirement Advice Keeps You Trapped

For decades, the dominant advice has been: “Save 15% of your income and hope you retire at 65.”
But what if you front-load your savings while you're young—and then let compound interest take over?

With Coast FIRE, you hit a point where your investments are growing fast enough that you can stop contributing and still hit your retirement goal by 60 or 65. That’s your Coast FIRE number.

The result?

Less stress about maxing your 401(k) every year
Freedom to change careers, reduce hours, or travel
A mental shift from accumulating to coasting

What Is Coast FIRE, Exactly?

Coast FIRE stands for Coasting to Financial Independence.
Unlike traditional FIRE (Financial Independence, Retire Early), which aims for full retirement ASAP, Coast FIRE is more flexible. You just need to save enough early on so your retirement investments can grow without further input.

Once you hit your number, your only financial responsibility is covering your current living expenses—not future retirement.

For example:

You’re 30 and want to retire at 60
You need $1 million at 60 (adjusted for inflation)
With 7% annual returns, you’d need about $131,000 saved by 30 to hit $1M at 60—without investing another dime

Calculated using the formula:

$FV = PV \times (1 + r)^n$

$1,000,000 = PV \times (1.07)^{30}$

$\Rightarrow PV \approx 131,367$

Step-by-Step: How Much Money Do YOU Need to Coast FIRE?

Let’s personalize it. Here's how to calculate your Coast FIRE number in five steps:

1. Set Your Target Retirement Age

Most people use 60 or 65. Earlier is possible, but it increases your number.

2. Estimate Your Retirement Spending

A good rule of thumb is 25x your annual expenses at retirement.

Want $40,000/year? You’ll need: $40,000 × 25 = $1,000,000

(Yes, you can adjust for Social Security or part-time work later—but this is a safe baseline.)

3. Choose Your Investment Return Rate

We recommend using 7% for stock-heavy portfolios, 5% if more conservative.

4. Use the Coast FIRE Formula

$PV = \dfrac{FV}{(1 + r)^n}$

Where:

$PV$ = Present Value = your Coast FIRE number
$FV$ = Future Value = retirement goal (e.g. $1M)
$r$ = Annual return (e.g. 0.07)
$n$ = Years until retirement

Example:
Age 35, target retirement age 60 (25 years to grow), need $1M.

$PV = \dfrac{1,000,000}{(1.07)^{25}} \approx 184,000$

So: You’d need $184,000 saved by 35 to coast to $1M by 60.

5. Try the Coast FIRE Calculator

Too much math? Try our free Coast FIRE calculator — plug in your age, retirement goal, and estimated return rate, and it shows you exactly how much you need.

Why Coast FIRE Works (When Traditional Saving Doesn’t)

Compound interest is a time machine for your money.

“The best time to plant a tree was 20 years ago. The second-best time is now.” – Chinese Proverb

The earlier you invest, the less you have to do. Here's how it breaks down:

Start investing early → your money grows exponentially
Reach your Coast number → you stop saving for retirement
Focus on life now → more freedom, flexibility, and fun

Let’s compare:

Strategy	Total Saved	Total Gained from Growth
Save $500/mo for 30 years	$180,000	~$740,000
Save $180,000 early, stop	$180,000	~$820,000

3 Common Mistakes When Calculating Coast FIRE

1. Underestimating Retirement Spending

Don’t assume expenses will magically drop. Inflation, healthcare, and lifestyle creep are real.

2. Overestimating Investment Returns

Yes, the market averages 7–10% annually—but use a conservative estimate (5–7%) to be safe.

3. Forgetting Inflation

A million dollars today won’t buy what it does in 30 years. Adjust your target accordingly—or let our calculator do it for you.

5 Actionable Steps to Hit Coast FIRE Faster

Maximize savings early — front-load your IRA, 401(k), and brokerage
Reduce lifestyle inflation — live below your means during your 20s and 30s
Track net worth monthly — measure progress toward your Coast number
Use the Coast FIRE Calculator — get a personalized roadmap
Review annually — life changes, and so should your plan

Coast FIRE Made Simple with One Tool

You could build a spreadsheet...
Or you could use our free Coast FIRE Calculator to do the math in seconds.

Visualize your FIRE trajectory
Adjust your assumptions (age, return, expenses)
Get instant answers—no formulas needed

It’s the fastest way to figure out if you’re already on track—or how far you need to go.

Ready to Stop Saving (and Start Living)?

You don’t need millions today. You just need a plan—and a number.
With Coast FIRE, you buy back your time, one year at a time.

👉 Try the Coast FIRE Calculator
👉 Bookmark it.
👉 Share it with a friend who’s grinding too hard.

Because you deserve to work because you want to, not because you have to.