Coast FIRE Calculator for Freelancers
Freelancers earn a median salary of $65k/year in the United States. With a 20% savings rate - achievable for most freelancers who are intentional about their spending - that's approximately $1,083/month ($13k/year) going toward Coast FIRE.
Why This Matters
Freelancing offers flexibility but requires more discipline for Coast FIRE. No employer match means you need to save more. Variable income means larger emergency funds. No HR department means you set up your own SEP IRA or Solo 401k. The upside: freelancers who reach Coast FIRE have complete location and time freedom. Many find that the discipline required for freelancing translates perfectly to Coast FIRE success.
Key Considerations for Your Situation
A $60-80k salary puts you in a strong position for Coast FIRE. You likely earn enough to cover expenses comfortably while saving meaningfully. The key is avoiding lifestyle inflation - the silent killer of FIRE dreams that makes higher earners not feel wealthy.
At this income level, aim for a 20-30% savings rate. That's $1,000-2,000/month toward your Coast FIRE goal. Invested consistently, this amount can reach $300,000+ in just 10-12 years, potentially enough to Coast FIRE if you start in your early 30s.
Max out your 401k employer match first - it's literally free money. If your employer matches 50% up to 6% of salary, that's an immediate 50% return on your first 6% contribution. No investment strategy beats guaranteed returns.
Beware of the middle-class trap: earning enough to afford nice things but not enough to afford nice things AND financial independence. Every upgrade to your car, home, or lifestyle extends your working years. Be intentional about which upgrades truly matter to you.
Freelancer Financial Strategies
Self-employment taxes (15.3% on top of income tax) make tax-advantaged accounts even more valuable. Max your Solo 401(k) or SEP IRA to reduce your tax burden.
Income variability requires 6-12 month emergency funds. Calculate your average income over 3+ years for realistic Coast FIRE projections.
Geographic freedom is your superpower. Earning San Francisco rates while living in Portugal or Thailand can compress Coast FIRE timelines dramatically.
Health insurance is your biggest expense risk. ACA subsidies can provide excellent coverage at low cost if you manage your MAGI (Modified Adjusted Gross Income) carefully.
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 freelancers reach Coast FIRE?
With a $65k salary and 20% savings rate, freelancers can typically reach Coast FIRE in 12-18 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 freelancers?
We recommend 20% or higher for freelancers, which translates to about $1,083/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 $54/month to your investments.
Do freelancers have special retirement options?
Self-employed freelancers can open a Solo 401k (up to $69,000/year in contributions) or SEP IRA (25% of net self-employment income). These are among the most powerful retirement accounts available. Even with variable income, prioritizing these accounts accelerates Coast FIRE significantly.
How does a freelancer salary compare for Coast FIRE?
Freelancers earn a median of $65k/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
Set up a Solo 401k or SEP IRA to create tax-advantaged savings.
Build a 6-12 month emergency fund for client gaps.
Calculate your average income over 3+ years for realistic planning.
Consider location flexibility as a Coast FIRE accelerator.
Related Tools & Resources
Ready to Calculate Your Coast FIRE Number?
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