Calculate your Financial Independence number and the monthly investment needed to retire early.
Financial Independence, Retire Early
Your FIRE number (25× rule)
₹4.85Cr
Corpus needed at age 45 to retire
Gap of ₹1.79Cr. Need ₹26,869/month extra.
FIRE types:
Based on the 4% safe withdrawal rate (Bengen, 1994). Actual results depend on market returns, inflation and lifestyle changes.
FIRE - Financial Independence, Retire Early - is a movement built on one idea: accumulate a large enough investment portfolio that you can live off the returns indefinitely, without needing a salary. The key number is your 'FIRE corpus': typically 25 times your annual expenses (based on the 4% safe withdrawal rate). This calculator takes your current age, target retirement age, monthly expenses, inflation, investment return, and existing savings to tell you: (1) how large a corpus you need at FIRE date, (2) whether your current savings pace gets you there, and (3) how much more to invest monthly if there is a gap.
The 4% rule, from William Bengen's 1994 research on US historical returns, says a retiree can withdraw 4% of their portfolio annually with low risk of running out of money over a 30-year period. The inverse - 25× annual expenses - becomes the target corpus:
FIRE Number = Annual Expenses at FIRE date × 25
Annual expenses are first inflation-adjusted to the FIRE date using your specified inflation rate. Then your projected corpus is calculated from current savings growing at the expected return, plus the future value of monthly SIP investments.
Projected Corpus = FV(current savings) + FV(monthly SIP)
If the projected corpus falls short, the calculator shows the additional monthly investment needed to close the gap.
The 4% rule was derived from US historical data. For India, where inflation has historically been higher (5-7% vs 2-3% in the US), a more conservative withdrawal rate of 3-3.5% (implying a corpus of 28-33× expenses) may be more appropriate for very long retirements. This calculator uses 25× as the baseline but you can adjust expenses to stress-test.
Lean FIRE: minimal lifestyle, 20-25× expenses, typically achieved faster. Regular FIRE: comfortable lifestyle, 25-28× expenses. Fat FIRE: generous, travel-heavy lifestyle, 33×+ expenses. Coast FIRE: stop investing but keep working; let the existing corpus grow to the FIRE number on its own.
Yes - EPF and NPS are investments that compound and contribute to your retirement corpus. Include their current balance in 'current savings'. However, note that EPF is accessible only at 58 (or with restrictions before), so for early retirement before 58, account for the liquidity mismatch.
Sequence of returns risk - a market downturn early in retirement - is the biggest FIRE risk. Mitigation strategies include: holding 2-3 years of expenses in FD/liquid funds, a dynamic withdrawal strategy (spend less when markets fall), and part-time income in early retirement (Barista FIRE).
Inflation is doubly important: it increases your future expenses (raising the FIRE number) and erodes the real value of your savings if returns don't exceed it. Always use a real return (return minus inflation) of at least 2-3% for long-term planning.
Go deeper: Retirement Hub - NPS, EPF, FIRE, pension planning, and more
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