FIRE Calculator
FIRE stands for Financial Independence, Retire Early. Enter your annual expenses, current savings, monthly investment, and expected return to find your FIRE number and how many years away you are from financial independence.
What you spend per year
Typical equity: 10-12%, conservative: 7-8%
4% is the standard safe withdrawal rate
How to use
- Enter your annual expenses - what it costs you to live for a year.
- Put in your current savings and what you invest every month.
- Set the expected annual return on your investments (8-12% is typical for equity).
- The withdrawal rate (4% is the classic 'safe withdrawal rate' from the Trinity Study) determines your FIRE number.
- Hit Calculate to see how many years until you hit FIRE.
Related tools:
FIRE stands for Financial Independence, Retire Early. The core idea is simple: if you save enough money that your investment returns can cover your living expenses forever, you never need to work again unless you want to. The most common benchmark is the 4% rule, which says you can withdraw 4% of your portfolio each year indefinitely without running out of money.
Your FIRE number is simply your annual expenses divided by your withdrawal rate. If you spend ₹6 lakh a year and use the 4% rule, your FIRE number is ₹1.5 crore. The calculator factors in your current savings, monthly investments, and expected return to tell you how many years away you are from hitting that target.
Frequently Asked Questions
What is the 4% rule?
The 4% rule comes from the Trinity Study (1998), which found that a portfolio of 60% stocks and 40% bonds could sustain withdrawals of 4% per year for at least 30 years in almost all historical scenarios. Many FIRE practitioners in India adjust this to 3-3.5% to account for longer retirements and different market conditions.
Should I account for inflation?
Yes. The simplest way is to reduce your expected return by your inflation estimate. If you expect 10% returns and 6% inflation, use 4% as your real return in the calculator. This gives you an inflation-adjusted projection.
What's a realistic return to expect in India?
Nifty 50 has historically delivered around 12-13% CAGR over long periods. After taxes and costs, 10-11% is a reasonable expectation for equity investments. Debt/fixed income returns are typically 6-8%. A blended portfolio might target 8-10%.
Is 4% withdrawal rate safe for early retirement in India?
The original Trinity Study was based on US market data for 30-year retirements. If you're retiring at 35, you might need a 50+ year portfolio. Many Indian FIRE followers use 3-3.5% to be safer. The calculator lets you adjust the withdrawal rate.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.