FIRE Calculator
Financial Independence Retire Early calculator built for Indian inflation.
3.5% is conservative for India
About the FIRE Calculator
The FIRE Calculator 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 FIRE Calculator 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 FIRE Calculator free to use?
Yes. The FIRE Calculator 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.