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Reach FI · flavor math

FIRE Number by Flavor — Lean vs Regular vs Fat

Generic calculators multiply your spending by 25 and stop. That number silently assumes a 30-year retirement, one withdrawal rate for every budget, pre-cliff ACA subsidies, and Social Security that starts the day you quit. This one uses a flavor-specific withdrawal band (a lean budget has no slack to cut, so it gets the conservative band), adjusts the multiple for your horizon, itemizes the restored 2026 ACA 400% FPL cliff per flavor, and subtracts Social Security as a present value on the portfolio side.

HHS FPL · asOf 2025-01 Rev. Proc. 2025-25 · asOf 2025-07 KFF SLCSP · asOf 2026-01 FRED TIPS · asOf 2026-07 SSA Trustees · asOf 2025-06 Updated 2026-07-22

Assumptions

live · all three flavors as ranges
Bare-bones budget. Default = BLS lowest-quintile average ($35,046, 2024).
Default = BLS all-household average ($78,535, 2024).
Comfort budget. Default = BLS highest-quintile average ($150,342, 2024).
From your SSA statement (ssa.gov/myaccount). Household total if two earners.
Sets the horizon, the ACA years (to 65), and the premium age rating.
Horizon = plan-to age − retirement age. Longer horizons shave the withdrawal band.
62–70. Years between retirement and claim are the bridge you self-fund.
Sets the federal poverty line your MAGI is measured against.
Marketplace-covered adults
Adults on the benchmark (second-lowest-cost silver) plan, age-rated at your retirement age.
Early-retiree MAGI is usually below spending (basis withdrawals aren't income). Drives the subsidy and the cliff.
Blended federal + state on gross withdrawals; grosses up the annual need.
Set your inputs to project all three flavor numbers as ranges.
$
Lean Fat
Regular number (typical) Low–high band across the horizon
Every output is a range, not a point. A lean budget has no discretionary slack to cut in a bad sequence, so it gets the conservative withdrawal band; the same 4% rule does not apply to lean and fat alike.

Lean vs Regular vs Fat

low · typical · high per flavor

Lean — conservative band, no discretionary slack to cut in a drawdown:

Regular — just under the classic 4% anchor:

Fat — discretionary spending can flex down, so the band runs higher:

Coral = optimistic end (high withdrawal rate, full Social Security), green = typical, lime = conservative end (low rate, TIPS-30 discount, Trustees 77% payable haircut).

ACA line item, per flavor

2026 law · enhanced credit expired 2025-12-31
FlavorMAGI vs FPLNet premiumStatus
Lean
Regular
Fat

For 2026 the 400% FPL cliff is back: $1 of MAGI over the line forfeits the entire premium tax credit — typically a five-figure annual jump for a fat budget. Congress may still act retroactively; treat every subsidy figure as a projection contingent on legislation.

Formula correction — the PV(SS) bug

regular flavor, typical assumptions
Shortcut (spend − SS) / SWR
Corrected: need/SWR − PV(SS)
Correction (understated by shortcut)
Pre-claim bridge (self-funded)

The shortcut nets Social Security out of spending as if the check starts the day you retire. It doesn't — the benefit's present value is subtracted from the portfolio side, and the years before claim age are a bridge you fund yourself.

Methodology & sources
Show the math
Set your inputs to see the worked numbers for each flavor.
Assumptions & sources
AssumptionValueSource · asOf
Withdrawal band — lean 3.25–3.5% (50-yr anchor) Early Retirement Now, SWR Series — 60-yr historical failsafe at 75–100% equity · asOf 2026-07 · lean budgets get the conservative band: no discretionary room to cut
Withdrawal band — regular / fat 3.7–4.0% / 4.0–4.25% Bengen (1994), J. Financial Planning — SAFEMAX 4.15% at 30 yrs, 50/50 · asOf 2026-07 · fat's discretionary share can flex down in a bad sequence
Horizon adjustment +0.5pp at 30 yrs … −0.2pp at 60 yrs Bengen 30-yr vs ERN long-horizon spread (~0.7–0.9pp), interpolated · 25× is a 30-year multiple; 45-yr retirements land nearer 28–31×
Poverty line (FPL) $15,650 + $5,500/person (hh 1) HHS ASPE 2025 guidelines, 48 states + DC — applies to coverage year 2026 per IRC §36B(d)(3)(B) · asOf 2025-01
Applicable percentage & cliff 2.10–9.96% of MAGI; no credit ≥400% FPL IRS Rev. Proc. 2025-25 (original §36B schedule restored — enhanced PTC expired 2025-12-31) · asOf 2025-07 · legislative uncertainty flagged
Benchmark premium (SLCSP) $625/mo national avg, age 40 KFF marketplace benchmark premiums 2026, rescaled on the CMS default age curve (21/40/64 = 1.000/1.278/3.000) · asOf 2026-01 · illustrative — real SLCSP is rating-area-specific
PV(Social Security) discount 2.0–2.75% real FRED TIPS constant-maturity real yields — DFII10 2.25%, DFII30 2.78% · asOf 2026-07-01 · CPI-indexed stream discounts at a real yield
Benefit payable share (conservative end) 77% of scheduled SSA 2025 OASDI Trustees Report — OASI reserve depletion 2033, continuing income covers 77% · asOf 2025-06
Spending defaults $35,000 / $78,500 / $150,000 BLS Consumer Expenditures 2024 — lowest quintile $35,046, mean $78,535, highest quintile $150,342 · asOf 2024 · defaults only, user-editable
Pre-65 healthcare treatment carried across the whole horizon conservative proxy for lifetime healthcare — Medicare premiums + out-of-pocket after 65 are not separately modeled (v1)

Formula: required = (spending + withdrawal tax + pre-65 ACA premium) ÷ withdrawal rate − PV(Social Security). The benefit's present value is subtracted from the portfolio side — putting it in the numerator is the classic bug this page corrects. Under-100%-FPL MAGI assumes expansion-state Medicaid at $0; in non-expansion states a coverage gap can apply. Every output is an estimate shown as a range.

Common questions

What is the difference between Lean, Regular, and Fat FIRE?

The three flavors describe different spending levels. This page defaults Lean to a bare-bones budget, Regular to a middle budget, and Fat to a comfort budget, seeded from 2024 BLS Consumer Expenditure averages of about $35,000, $78,500, and $150,000. Each flavor gets its own withdrawal band, because a lean budget has no discretionary spending to cut in a bad market sequence and so is treated more conservatively than a fat one.

How much do I need to retire early with the 4% rule?

The 4 percent rule traces to Bengen's 1994 study, which found a roughly 4.15 percent safe withdrawal rate over 30 years. This calculator notes that 25 times spending is a 30-year figure, so a 45-year retirement lands nearer 28 to 31 times. It applies flavor-specific bands rather than one rate: about 3.25 to 3.5 percent for lean and 3.7 to 4.25 percent for regular and fat, then adjusts for your horizon.

How does Social Security affect your FIRE number?

This page subtracts Social Security as a present value on the portfolio side, not by netting it out of spending. The shortcut that treats the check as starting the day you retire understates the number, because the benefit does not begin until your claim age and the years before it are a bridge you self-fund. The present value discounts the CPI-indexed stream at a real yield drawn from TIPS.

What is the 2026 ACA subsidy cliff and how does it affect early retirement?

For 2026 the 400 percent federal-poverty-line cliff is restored after the enhanced premium tax credit expired on December 31, 2025. One dollar of MAGI over that line forfeits the entire premium tax credit, which the page notes can be a five-figure annual jump for a fat budget. The calculator itemizes this per flavor, since a withdrawal that lifts MAGI over the line changes the number. Congress may still act, so treat subsidy figures as projections.

Written by Chris Park · Updated 2026-07-22
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