FIRE Calculator

FIRE stands for Financial Independence, Retire Early. It is a movement and financial strategy focused on aggressive saving and investing to accumulate enough wealth that the returns from your investments can cover your living expenses indefinitely, allowing you to retire much earlier than the traditional age of 60.

The core idea is to save 50-70% of your income, invest aggressively, and reach a corpus that sustains your lifestyle through passive income. In the Indian context, where the cost of living is relatively lower, FIRE can be achieved with a more moderate corpus than in Western countries.

Your FIRE number is the corpus you need to achieve financial independence. The most common method to calculate it is:

FIRE Number = Annual Expenses × 25

This is based on the 4% safe withdrawal rate — the idea that you can withdraw 4% of your corpus annually (adjusted for inflation) without running out of money over a 30-40 year retirement. In India, considering higher inflation, some experts recommend a 3-3.5% withdrawal rate, leading to a 28-33x multiplier.

• Lean FIRE: Achieving financial independence with a minimalist lifestyle and lower expenses
• Fat FIRE: Accumulating a larger corpus to maintain a comfortable, higher-spending lifestyle
• Barista FIRE: Having enough investments to semi-retire and work part-time for supplementary income
• Coast FIRE: Having enough invested that compounding alone will grow it to a full FIRE number by traditional retirement age

• Step 1: Enter your current monthly expenses and expected inflation rate
• Step 2: Input your current savings, monthly investment capacity, and expected returns
• Step 3: Set your desired withdrawal rate (e.g., 3.5% for India)
• Step 4: View when you can achieve financial independence and the required corpus