Distance — your FIRE target capital
FIRE · BasicsThe distance is how far you are from your goal — i.e. your FIRE target capital. It is the amount of wealth from which investment income (after taxes and inflation) carries you permanently without you having to work.
FireLotse calculates this number from your planned retirement budget (living costs + lifestyle), your chosen withdrawal rate (default: 4%, adjustable in the Retirement module), taxes and health insurance. Higher expenses = longer distance. Lower expenses = shorter distance.
Example:€2,500/month in retirement requires around €750,000 under the 4% rule (before taxes). With health insurance and taxes you end up closer to €900,000–1,000,000.