FIRE Calculator Achieve Early Retirement
Calculate your financial independence number and path to early retirement
Discover how much you need to save to achieve Financial Independence, Retire Early (FIRE) and live life on your own terms.
Calculate Your FIRE
💡 Tip: The traditional FIRE rule suggests saving 25 times your annual expenses (4% withdrawal rate) to achieve financial independence.
Understanding FIRE
What is FIRE?
FIRE (Financial Independence, Retire Early) is a movement focused on extreme savings and investment to enable retirement much earlier than traditional retirement plans allow.
- Financial independence from traditional employment
- Retire in your 30s, 40s, or 50s
- Live on passive investment income
Benefits of FIRE
- Freedom to pursue passions and hobbies
- Reduced financial stress and anxiety
- More time with family and friends
- Geographic and lifestyle flexibility
FIRE Calculation Formula
The calculator uses the following principles to determine your path to FIRE:
FIRE Number Formula:
FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate • 4% Rule: The traditional safe withdrawal rate (25x annual expenses)
• 3% Rule: More conservative approach (33.3x annual expenses)
• Example: If annual expenses = ₹6,00,000 and withdrawal rate = 4%
FIRE Number = ₹6,00,000 ÷ 0.04 = ₹1,50,00,000 (1.5 Crore)
Lean FIRE
Living frugally with minimal expenses. Typically requires the smallest nest egg but demands lifestyle compromises.
Target: 25x lean expenses
Regular FIRE
Maintaining your current lifestyle without significant changes. Most common approach to FIRE.
Target: 25x current expenses
Fat FIRE
Retiring with a higher standard of living and more cushion for unexpected expenses or lifestyle inflation.
Target: 25x elevated expenses
Key Strategies to Achieve FIRE
Increase Savings Rate
Save 50-70% of your income by reducing expenses
Invest Wisely
Focus on index funds, stocks, and diversified portfolios
Minimize Expenses
Reduce unnecessary spending and lifestyle inflation
Increase Income
Side hustles, promotions, or career changes
Geographic Arbitrage
Consider lower cost of living areas
Stay Consistent
Maintain discipline and adjust as needed
Frequently Asked Questions
What is the 4% rule?
The 4% rule suggests you can safely withdraw 4% of your portfolio each year in retirement without running out of money. This means you need 25 times your annual expenses saved (100% ÷ 4% = 25).
How much should I save for FIRE?
Your FIRE number depends on your annual expenses and chosen withdrawal rate. For example, if you spend ₹6 lakhs per year, you'll need ₹1.5 crore (6,00,000 × 25) using the 4% rule.
What's a realistic timeline to achieve FIRE?
The timeline depends on your savings rate. With a 50% savings rate, you could achieve FIRE in approximately 15-17 years. Higher savings rates (60-70%) can reduce this to 10-12 years.
What investment returns should I expect?
Historical stock market returns average around 10-12% annually before inflation. Conservative estimates use 7-8% real returns (after inflation) for retirement planning.