FIRE Calculator
Enter your annual expenses, yearly savings, and expected returns to see when work becomes optional.
Runs entirely in your browser — your numbers never leave this page.
How it works
FIRE (Financial Independence, Retire Early) has one equation: save 25× your annual expenses, invested — then 4% yearly withdrawals sustain you indefinitely:
- The only lever that matters: savings rate. Save 10% → ~50 years to FI. Save 50% → ~17 years. Save 70% → ~9 years. Income matters less than the gap between earning and spending.
- Why 25x? the 4% rule: withdrawing 4% of a 25x corpus yearly has historically survived 30+ year retirements. Conservative Indians often target 30–33x.
- Real returns: use returns after inflation (7% is a fair equity-heavy assumption in India). Nominal 12% with 6% inflation = 6% real.
- Indian twists: no social security backstop, family obligations, and healthcare inflation (~14%) — many target a bigger buffer than 25x.
- FI ≠ quitting: most reach "work optional" and keep earning on their own terms. The corpus buys freedom, not idleness.
Frequently asked questions
What is the FIRE number?
25 times your annual expenses — the corpus where a 4% yearly withdrawal covers your spending indefinitely. Rs 6L/year expenses → Rs 1.5 crore FIRE number.
How fast can I reach FIRE?
It's driven by savings rate: 50% savings → ~17 years, 65% → ~11 years, 30% → ~28 years (at 7% real returns).
What is a good savings rate for FIRE?
50%+ is the FIRE standard. Every 10% of extra savings rate cuts years off the journey.
Is the 4% rule safe in India?
It was built on US data. With higher Indian inflation and no social safety net, many Indians target 3–3.5% (28–33x expenses) for extra margin.
What returns should I assume?
Use real returns (after inflation): ~7% for equity-heavy portfolios in India. Be conservative — 5-6% if you hold more debt.
Does FIRE mean never working again?
Not necessarily — most FIRE achievers keep earning through passion projects or part-time work. FI means work is optional, not banned.
What about kids and parents?
Add their expected costs to your annual expenses before multiplying by 25. Underestimating family obligations is the classic Indian FIRE mistake.
Should I include my house in the corpus?
No — you live in it, it doesn't generate withdrawals. Count only invested assets (equity, debt, rental property).
What is Coast FIRE?
Saving enough early that compounding alone reaches your FIRE number by retirement age — you then only need to cover current expenses from work.
What is Barista FIRE?
Reaching FI for basics but working part-time for extras and health insurance — a popular middle path.