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FIRE (Financial Independence Retire Early) Calculator

Calculate required FIRE retirement corpus, lean/fat FIRE goals, and target age based on annual expenses and withdrawal rate.

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3–4% is the range most commonly cited.

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Target corpus (today's money)
₹1.80 Crore
25× annual expenses
Annual expenses
₹7,20,000
Years to reach it
17.1 years
Corpus needed then (nominal)
₹4.87 Crore
After 17.1 years of 6% inflation

How this is calculated

Target = annual expense × (100 ÷ SWR) = ₹7,20,000 × 25 = ₹1.80 Crore

Real return used for accumulation = (1 + 11%) ÷ (1 + 6%) − 1 = 4.72%

Accumulating at the real rate keeps the target expressed in today's money, so the two figures are comparable. The nominal corpus needed at retirement is shown separately.

FIRE (Financial Independence Retire Early) Calculator: how it works

Financial independence means a corpus large enough that a safe withdrawal covers your expenses indefinitely. The arithmetic is simple; the assumptions are where the difficulty lies.

The target

Target corpus = Annual expenses × (100 ÷ Safe withdrawal rate)

A 4% withdrawal rate implies 25× annual expenses
A 3% rate implies 33×

Worked example · ₹60,000 monthly expenses at 4 percent

Given

  • Monthly expenses: ₹60,000
  • SWR: 4%

Working

  1. 1Annual expenses = 60,000 × 12 = ₹7,20,000
  2. 2Multiple = 100 ÷ 4 = 25
  3. 3Target = 7,20,000 × 25

Target corpus: ₹1.80 crore in today’s money

Inflation and the real rate

Expenses rise over time, so a target expressed in today’s rupees needs a larger nominal corpus by the time you reach it. The cleanest way to handle this is to accumulate at the real rate — your expected return adjusted for inflation — which keeps everything in today’s money.

Real rate = ((1 + nominal) ÷ (1 + inflation)) − 1

11% return with 6% inflation gives a real rate of 4.72%

Where the 4 percent rule comes from

Sequence-of-returns risk is the specific danger: a severe market fall in the first few years of retirement, while you are withdrawing, can permanently impair a portfolio that would have survived the same fall later.

What the number leaves out

  • Healthcare costs rise faster than general inflation and become significant with age.
  • Health insurance premiums after leaving employment can be substantial.
  • Children’s education and family obligations often are not in the monthly expense figure.
  • Taxes on withdrawals reduce the amount actually available to spend.

Frequently asked questions

Typically 25 to 33 times your annual expenses, corresponding to a safe withdrawal rate of 4 to 3 percent. At ₹60,000 monthly expenses that is between ₹1.8 and ₹2.4 crore in today’s money.

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