Coast FIRE Calculator for Engineers
Engineers earn a median salary of $95k/year in the United States. With a 25% savings rate - achievable for most engineers who are intentional about their spending - that's approximately $1,979/month ($24k/year) going toward Coast FIRE.
Why This Matters
Engineering salaries provide excellent Coast FIRE potential, but the career comes with risks. The field can be volatile - layoffs happen, and age discrimination is real in tech. This actually makes Coast FIRE more important, not less. Reaching Coast FIRE as an engineer provides the freedom to take career risks, wait for the right opportunity after a layoff, or transition to less demanding roles without financial pressure.
Key Considerations for Your Situation
At $80-120k, you have excellent Coast FIRE potential. Your income allows for both comfortable living and aggressive saving. Many people at this income level reach Coast FIRE in under 10 years by maintaining a lifestyle suited to a lower income while banking the difference.
Consider the powerful strategy of "living on last year's salary." Each time you get a raise, pretend it didn't happen and invest the entire increase. If your salary grows from $90k to $100k, you just added $10k/year to your investments without any lifestyle change.
At this income level, you can likely max out all tax-advantaged accounts: 401k ($23,000), Roth IRA ($7,000), and HSA ($4,150 individual/$8,300 family). That's $34,000+ in tax-advantaged savings before you even touch a taxable brokerage account.
Watch out for golden handcuffs. Higher incomes often come with higher stress, longer hours, and less flexibility. Coast FIRE can free you from this trap - once you hit your number, you can choose work based on enjoyment rather than compensation.
Engineer-Specific Financial Considerations
Stock-based compensation (RSUs, options) can accelerate Coast FIRE dramatically but creates concentration risk. Diversify as shares vest rather than holding company stock.
Engineering careers peak earlier than many professions - salaries often plateau in your 40s. Front-load savings during peak earning years (28-42).
Mega backdoor Roth: many tech companies allow after-tax 401(k) contributions ($69,000 total limit) that can be converted to Roth. This can add $30,000+ to your tax-advantaged savings.
Age discrimination is real in tech. Coast FIRE provides insurance - you can afford to wait for the right opportunity rather than taking any job after a layoff.
Healthcare Planning for Early Retirement
ACA marketplace plans become affordable below ~400% FPL ($62,400 single, $129,280 family of 4 in 2025). "MAGI engineering" - controlling your adjusted gross income - can secure subsidies worth $10,000+/year.
The ACA subsidy cliff at ~225% FPL is critical: staying below ~$35,000 AGI (single) can reduce premiums to under $200/month. Roth conversions and capital gains timing affect your MAGI.
COBRA bridges the gap if you leave employer coverage but only lasts 18 months and costs full premium plus 2% admin. Budget $1,500-2,500/month for family coverage.
Healthcare Sharing Ministries (HSMs) offer lower monthly costs but aren't insurance - they can deny claims and have lifestyle requirements. Use only as a last resort.
Healthcare costs vary significantly by state, age, and family size. Factor in premium subsidies, deductibles, and out-of-pocket maximums when planning your Coast FIRE budget.
The Psychology of Coast FIRE
"One More Year" syndrome is real: the temptation to keep working "just one more year" can trap you indefinitely. Set a specific Coast FIRE date and honor it.
Identity beyond work is essential. Many Coast FIRE achievers struggle when they define themselves by their job title. Cultivate interests, relationships, and purpose outside of work before transitioning.
The "permission to spend" mindset shift is difficult. After years of aggressive saving, many Coast FIRE people feel guilty spending money. Remember: the point was freedom, not deprivation.
"Die With Zero" perspective: you can't take it with you. Coast FIRE should enable experiences now, not just security later. Balance future safety with present fulfillment.
How Coast FIRE Works
Compound Growth
Your investments grow exponentially over time. Einstein called compound interest the 8th wonder of the world.
The Coast Strategy
Once you hit your Coast number, you never need to save for retirement again. Work for passion, not survival.
Freedom Date
Discover when you can switch to part-time work or pursue your dreams without financial anxiety.
Frequently Asked Questions
When can engineers reach Coast FIRE?
With a $95k salary and 25% savings rate, engineers can typically reach Coast FIRE in 8-12 years starting from zero, assuming they target $1M FI number at retirement. Your exact timeline depends on your age (which affects how long your investments can compound), your actual spending (which determines your FI number), and your actual savings rate. Use our calculator with your specific numbers for a personalized projection.
What's a good savings rate for engineers?
We recommend 25% or higher for engineers, which translates to about $1,979/month on a median salary. Start with your 401k match (free money), then work toward maxing your IRA ($7,000/year), and increase 401k contributions as you can. Each 1% increase in savings rate adds roughly $79/month to your investments.
Do engineers have special retirement options?
Engineers typically have standard 401k and IRA options. Start by maxing your employer match (free money), then consider whether Roth or Traditional makes more sense based on your current vs expected retirement tax bracket. If you have access to an HSA through a high-deductible health plan, that's another powerful tax-advantaged account.
How does a engineer salary compare for Coast FIRE?
Engineers earn a median of $95k/year in the US. This is a solid income for Coast FIRE. With intentional saving and avoiding lifestyle inflation, you could reach Coast FIRE in 8-12 years. The key is widening the gap between income and expenses.
Your Next Steps
Calculate your Coast FIRE number and check if you're closer than you think.
Consider whether your employer offers mega backdoor Roth options.
Evaluate career risk - would reaching Coast FIRE change your career strategy?
Watch for lifestyle inflation that often comes with engineering salaries.
Related Tools & Resources
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Use our free calculator above to see exactly when you could stop saving and let compound interest carry you to retirement.
Use Calculator NowSources
- [1]Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable(1998)
- [2]Determining Withdrawal Rates Using Historical Data(1994)
- [3]Historical Returns on Stocks, Bonds and Bills
- [4]Bureau of Labor Statistics Occupational Outlook
- [5]Safe Withdrawal Rate Series
- [6]Healthcare.gov Marketplace
- [7]TSP.gov - Thrift Savings Plan
- [8]IRS Publication 571