FIRE Calculator
Calculate your path to Financial Independence and Early Retirement. Find your FIRE number and see how many years until you can live off your investments.
What this calculator does
- Calculates your FIRE number (target portfolio size)
- Shows years until you reach financial independence
- Projects portfolio growth over time
- Helps optimize your savings rate for faster FIRE
How to Use
Enter annual expenses
Your yearly spending (current or planned)
Add current portfolio
Existing investments and savings
Enter monthly savings
Amount you invest each month
Set return rate
Expected annual return (7-10% typical)
View FIRE number
Your target corpus (expenses × 25)
See your timeline
Years until financial independence
Example Calculations
Regular FIRE Example
A 30-year-old earning ₹15 lakh/year, spending ₹6 lakh/year, saving ₹9 lakh/year. Already has ₹20 lakh invested. Expects 10% annual returns.
With a 60% savings rate and existing portfolio, FIRE is achievable before 40. At that point, the portfolio generates ₹6 lakh/year at 4% withdrawal rate.
Lean FIRE Example
A frugal person spending only ₹3 lakh/year, saving ₹50,000/month, starting from ₹5 lakh.
Lower expenses mean a smaller FIRE number and faster path to freedom. The trade-off is maintaining a frugal lifestyle permanently.
Fat FIRE Example
Someone wanting a luxurious retirement with ₹20 lakh/year expenses, saving ₹2 lakh/month.
Fat FIRE requires a much larger corpus but provides a comfortable, worry-free retirement with buffer for unexpected expenses.
FIRE Planning Reference
FIRE Number by Annual Expenses
| Annual Expenses | FIRE Number (25×) | Safe Withdrawal (4%) | FIRE Type |
|---|---|---|---|
| ₹3 lakh | ₹75 lakh | ₹25,000/month | Lean FIRE |
| ₹6 lakh | ₹1.5 crore | ₹50,000/month | Regular FIRE |
| ₹12 lakh | ₹3 crore | ₹1 lakh/month | Regular FIRE |
| ₹20 lakh | ₹5 crore | ₹1.67 lakh/month | Fat FIRE |
| ₹40 lakh | ₹10 crore | ₹3.33 lakh/month | Fat FIRE |
Years to FIRE by Savings Rate (assuming 7% real return)
| Savings Rate | Years to FIRE | Difficulty |
|---|---|---|
| 10% | 51 years | Traditional retirement |
| 25% | 32 years | Moderate |
| 50% | 17 years | Aggressive |
| 65% | 10.5 years | Very aggressive |
| 75% | 7 years | Extreme |
Savings rate has the biggest impact on FIRE timeline. Doubling your savings rate more than halves your time to FIRE.
Safe Withdrawal Rates
| Withdrawal Rate | Multiplier | Safety Level | Best For |
|---|---|---|---|
| 3% | 33× expenses | Very Safe | 50+ year retirement, conservative |
| 4% | 25× expenses | Standard | 30-year retirement (most common) |
| 5% | 20× expenses | Aggressive | Flexible income, can adjust spending |
Frequently Asked Questions
Key Terms
FIRE Number
The total portfolio size needed for financial independence. Typically 25× your annual expenses using the 4% rule.
Savings Rate
Percentage of income you save. The most important factor in how fast you reach FIRE. 50%+ is considered aggressive.
4% Rule
Guideline that you can withdraw 4% of your portfolio yearly (adjusted for inflation) without running out over 30 years.
Safe Withdrawal Rate (SWR)
The percentage you can safely withdraw annually. 4% is standard; 3% is conservative for longer retirements.
Coast FIRE
When your portfolio is large enough that compound growth alone will reach your FIRE number by traditional retirement age.
Sequence of Returns Risk
The risk that poor market returns early in retirement deplete your portfolio faster than expected.
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Disclaimer: This calculator provides estimates based on assumed constant returns and expenses. Actual investment returns vary significantly. The 4% rule is a guideline, not a guarantee. Consider inflation, healthcare costs, taxes, and unexpected expenses. Consult a financial advisor for personalized retirement planning.
