What is an FIRE Calculator?
FIRE stands for Financial Independence, Retire Early. The idea is to save and invest aggressively so that your investments, not your salary, can pay for your lifestyle well before the usual retirement age.
Your FIRE number is the corpus you need on the day you stop working: enough to pay your yearly expenses, rising with inflation every year, from your FIRE age until your life expectancy, while the money stays invested at the return you expect after FIRE.
This calculator works out that number, how far your current portfolio and SIP could take you, the SIP needed to close the gap, and the age at which your money could run out on the current plan.
How it helps you
- See your FIRE number in rupees at your FIRE age and in today's money.
- Compare Lean, regular and Fat FIRE targets for different lifestyles.
- Check whether your current portfolio and SIP are enough, and the size of any gap.
- Find the monthly SIP needed, either flat or rising 10% every year with your income.
- See how long your money could last after you stop working.
How it is calculated
FIRE number = E × [1 − ((1 + g) ÷ (1 + r))ᴺ] ÷ (r − g) × (1 + r)
- E
- Yearly expenses at FIRE age = today's monthly expenses × 12 × (1 + g)ʸ
- g
- Inflation rate ÷ 100
- r
- Return on the corpus after FIRE ÷ 100
- N
- Years from FIRE age to life expectancy
- y
- Years from today to FIRE age
Expenses are drawn at the start of each year and keep rising with inflation. Your portfolio grows at the return before FIRE; the SIP needed covers whatever the portfolio cannot.
You are 30 and want to reach FIRE at 45, planning till 85. Monthly expenses are ₹60,000, inflation 6%, return 12% before FIRE and 8% after. You have ₹10,00,000 invested and a ₹40,000 monthly SIP.
- 1Yearly expenses at 45 ≈ ₹17,25,522 (₹7,20,000 × 1.06¹⁵)
- 2FIRE number at 45 to fund 40 years ≈ ₹4,90,61,929, about 28.4x yearly expenses (≈ ₹2,04,71,829 in today's money)
- 3Your ₹10,00,000 may grow to ≈ ₹54,73,566, and with the ₹40,000 SIP the plan reaches ≈ ₹2,56,56,606 by 45
- 4Gap to fill ≈ ₹2,34,05,323; on the current plan the money could run out at about age 62
Monthly SIP needed ≈ ₹86,386, or about ₹50,195 to start if you raise it by 10% every year.
How to use the FIRE Calculator
- 1Enter your monthly household expenses, current age, target FIRE age and life expectancy.
- 2Set the inflation you expect.
- 3Enter your current portfolio set aside for FIRE and your monthly SIP.
- 4Set the returns you expect before and after FIRE.
- 5Read your FIRE number, the gap, the SIP needed and how long your money could last. Hover the chart to see any age.
Frequently asked questions
Is FIRE practical in India?
It can be, but it needs a high savings rate, disciplined investing over many years and a realistic view of expenses. Even if you do not retire early, building towards financial independence gives you more choices about work.
What are Lean FIRE and Fat FIRE?
Lean FIRE plans for a leaner lifestyle than today (here, 60% of current expenses). Fat FIRE plans for a more comfortable one (150%). The corpus needed scales with the expenses you plan for.
Does the 4% rule work in India?
The 4% rule comes from US studies with lower inflation. With higher inflation in India, and medical costs that often rise faster still, many planners use a lower withdrawal rate of about 3–3.5%, or roughly 28–33 times yearly expenses. This calculator instead works out the corpus for your own inflation, return and time horizon.
Why is the return after FIRE limited to 10%?
After you stop working you depend on the corpus for income, so most people move a large part of it to lower-risk investments. Assuming a high return after FIRE can make the target look much smaller than it should be.
Should I include PPF, EPF and NPS?
Yes, add their current balances to your portfolio if they are meant for FIRE. Keep in mind that some of them have lock-ins or withdrawal limits before a certain age, so you may need other investments to cover the early years.
What about healthcare and big one-time costs?
Monthly expenses do not capture everything. Keep adequate health insurance, an emergency fund, and plan separately for goals such as children's education or a home.
How often should I review my FIRE plan?
Review it at least once a year, and whenever your income, expenses or family situation changes.
Are the results guaranteed?
The result is an estimate based on a constant rate. Actual market returns change every year and are not guaranteed.