How FIRE works
- Calculate your FIRE number: Annual expenses ÷ Safe withdrawal rate. At 4% SWR: FIRE = Expenses × 25.
- Maximise savings rate: The higher your savings rate, the faster you reach FIRE. At 50% savings rate, you can retire in ~17 years; at 70%, in ~8.5 years.
- Invest aggressively: Put savings into diversified index funds, equities, or other growth assets that beat inflation.
- Reach FIRE number: When your portfolio hits the target, investment returns cover all expenses. You're financially independent.
Savings rate vs years to FIRE
| Savings rate | Years to FIRE (approx) |
|---|---|
| 10% | 51 years |
| 25% | 32 years |
| 50% | 17 years |
| 60% | 12.5 years |
| 70% | 8.5 years |
| 80% | 5.5 years |
Assumes 5% real return (after inflation), starting from ₹0.
Types of FIRE
- Regular FIRE: Maintain current lifestyle. FIRE number = 25× annual expenses.
- Lean FIRE: Cut expenses aggressively. Lower target, earlier retirement, tighter budget.
- Fat FIRE: Maintain a luxurious lifestyle. Higher target, may need 30-35× expenses.
- Barista FIRE: Partially retired — work part-time to cover some expenses while portfolio grows.
FAQ
Is the 4% rule safe for India?
The 4% rule was designed for US markets. Indian inflation is higher (5-7% vs 2-3%), so many Indian FIRE planners use 3-3.5% SWR for extra safety. This calculator lets you adjust the rate.
Should I account for inflation?
Yes. This calculator uses real returns (nominal return minus inflation) to give you an inflation-adjusted FIRE number. Your expenses at retirement will be higher than today's due to inflation.
What about healthcare costs after early retirement?
Healthcare is a critical FIRE consideration. Budget for comprehensive health insurance, build a separate medical emergency fund (₹10-20 lakh), and factor in rising premiums as you age.