How this fire calculator works
Future monthly expense = current expense × (1 + inflation rate)^years. FIRE corpus = future annual expense ÷ withdrawal rate.
Worked example
Monthly spending of ₹80,000 today becomes approximately ₹1.61 lakh after 12 years at 6% inflation. At a 4% withdrawal assumption, the estimated corpus is about 25 times the future annual expense.
Assumptions
- Current expenses represent the lifestyle that must be funded.
- Inflation remains constant until retirement.
- The withdrawal rate is applied to the first retirement year’s expense.
- No separate pension or rental income is included.
Limitations
- A withdrawal rate does not guarantee that money will last.
- Taxes, investment fees, healthcare shocks and sequence-of-returns risk are excluded.
- Retirement spending and inflation may change over time.
Frequently asked questions
What does FIRE mean?
FIRE means Financial Independence, Retire Early: building enough invested assets to fund living expenses without relying on employment income.
What is a FIRE number?
It is an estimated investment corpus derived from annual expenses and an assumed sustainable withdrawal rate.
Why is inflation included?
The same lifestyle usually costs more in future, so current expenses must be projected to the retirement date.
Is the 4% rule suitable for India?
It is a scenario assumption, not a universal rule. Retirement length, asset mix, taxes and Indian inflation can justify testing lower rates.
Should emergency funds be part of the FIRE corpus?
It is generally clearer to model emergency cash and major one-time goals separately.
Does this include existing investments?
This calculator estimates the target corpus. Compare it separately with the future value of existing investments.
Can I retire when I reach this number?
The number is a starting point for deeper planning, not a retirement recommendation.