Early Retirement (FIRE) — India
An India-specific FIRE planner with healthcare and longevity inputs.
India long-term average ~6%
3.5% is conservative for India
About the Early Retirement (FIRE) — India
The Early Retirement (FIRE) — India is built for the FIRE movement (Financial Independence, Retire Early) adapted for Indian realities — higher inflation, growing healthcare costs, joint-family obligations and the absence of social security. It computes your FIRE number, the savings rate needed to hit it by your target year, and the trade-offs between Lean FIRE, Fat FIRE and Coast FIRE strategies.
How the Early Retirement (FIRE) — India works
- Enter your current age, target FIRE age, monthly expenses today and current savings.
- The calculator inflates expenses to your FIRE year, applies the chosen withdrawal rate (3-4% for India), and computes the corpus you need.
- It then solves for the monthly SIP — and the savings rate as a % of income — needed to reach the corpus.
- Optional modes: Lean FIRE (minimal expenses), Fat FIRE (premium lifestyle) and Coast FIRE (let existing investments grow).
Inputs explained
Formula
FIRE corpus = annual expenses at FIRE / SWR Monthly SIP needed = (FIRE corpus − future value of current savings) × i / [(1+i)^n − 1] where i = monthly return, n = months to FIRE.
Worked example
A 28-year-old spending ₹60,000/month targeting FIRE at 45 needs ~₹6 Cr in 2042 rupees. At a 12% equity CAGR, the required SIP is roughly ₹70,000/month — implying a savings rate north of 50% of post-tax income.
India-specific notes
- •Indian FIRE typically needs a higher corpus than Western FIRE — inflation runs 6% vs 2-3% in the US.
- •Healthcare in India after 60 can cost ₹50k-2L/year — budget separately and buy senior-citizen cover early.
- •LTCG tax of 12.5% (above ₹1.25L) and 4% cess affects effective withdrawal — model after-tax.
- •Real estate is a poor FIRE asset in India — illiquid, low rental yield (2-3%) and high maintenance.
Tips to maximise this calculator
- →Track your savings rate weekly — it's the single biggest lever, more than return assumptions.
- →Build a 2-year cash buffer before pulling the FIRE trigger — bridges any early bear market.
- →Coast FIRE first: once your existing corpus can grow to your FIRE number without further contributions, you've earned freedom to switch jobs or freelance.
Common mistakes to avoid
- ✕Using a 4% SWR blindly — designed for the US with 60/40 portfolios; Indian inflation needs 3-3.5%.
- ✕Forgetting tax on withdrawals — your ₹6 Cr corpus might net only ₹5.3 Cr post-tax.
- ✕Quitting too early without health insurance lined up — corporate cover ends with the job.
Glossary
- FIRE
- Financial Independence, Retire Early — a movement built on extreme saving and investing.
- Lean FIRE
- FIRE with bare-minimum expenses (~₹30k/month in India).
- Fat FIRE
- FIRE with premium lifestyle (~₹2L+/month).
- Coast FIRE
- Stage where existing corpus will grow to FIRE without further SIPs.
Frequently asked questions
Is the Early Retirement (FIRE) — India free to use?
Yes. The Early Retirement (FIRE) — India is free, runs in your browser and never stores personal data.
Are the assumptions India-specific?
Yes. We use INR, Indian inflation and India-specific rates (PPF, EPF, FY 2026-27 tax slabs where applicable).
Is this investment advice?
No. This tool is for education. Consult a SEBI registered advisor before investing.