FIRE Calculator

Plan your Financial Independence and Early Retirement journey with our comprehensive FIRE calculator

FIRE Calculator
18 years60 years
30 years70 years
₹
₹10,000₹5,00,000
5%15%
3%8%
%
2%8%
Required FIRE Corpus
₹0

Total amount needed for FIRE

Future Monthly Expenses
₹0

Inflation-adjusted expenses

Years to Retirement
0 years

Time to achieve FIRE

Safe Monthly Withdrawal
₹0

Monthly income after FIRE

FIRE Summary
Annual Expenses at Retirement:
₹0
Monthly Passive Income:
₹0

FIRE Goal: Build a corpus of ₹0 to generate₹0 monthly income and achieve financial independence in 0 years.

What is FIRE?

FIRE stands for Financial Independence, Retire Early. It's a movement focused on extreme savings and investment that allows you to retire much earlier than traditional budgets and retirement plans would allow.

Key Principles:

  • •High Savings Rate: Save 50-70% of your income
  • •Smart Investing: Invest in low-cost index funds and diversified portfolios
  • •Expense Control: Live below your means and optimize spending
  • •4% Rule: Withdraw 4% of your corpus annually for sustainable income

Safe Withdrawal Rate (4%): This rule suggests you can safely withdraw 4% of your retirement corpus each year without running out of money, based on historical market data.

FIRE Calculation Formula

Step-by-Step Calculation:

1. Years to Retirement:
Years = Target Age - Current Age
2. Future Monthly Expenses:
Future Expenses = Current Expenses × (1 + Inflation Rate)^Years
3. Annual Expenses:
Annual Expenses = Future Monthly Expenses × 12
4. Required FIRE Corpus:
Corpus = Annual Expenses ÷ (Safe Withdrawal Rate ÷ 100)
5. Safe Monthly Withdrawal:
Monthly Income = (Corpus × Withdrawal Rate ÷ 100) ÷ 12

Example:

If you need ₹50,000/month today and plan to retire in 20 years with 6% inflation and 4% withdrawal rate, you'll need approximately ₹3.84 Cr corpus to generate ₹1.6L monthly income.

Frequently Asked Questions

What is the 4% rule?

It's a rule of thumb that says you can safely withdraw 4% of your retirement corpus each year without running out of money. This rule is based on historical market data and assumes a diversified portfolio of stocks and bonds.

Is FIRE possible in India?

Yes. With proper planning, high savings rate, and disciplined investing, FIRE is achievable even with Indian income and expenses. Many Indians have successfully achieved FIRE by saving 50-70% of their income and investing wisely.

What should I invest in for FIRE?

A mix of index funds, equity mutual funds, and PPF/EPF are common choices. Focus on low-cost, diversified investments with regular rebalancing and a long-term view. Consider tax-efficient instruments like ELSS and NPS.

What savings rate do I need for FIRE?

Most FIRE practitioners aim for 50-70% savings rate. The higher your savings rate, the faster you can achieve FIRE. Even a 25-30% savings rate can help you retire earlier than traditional retirement age.