FIRE Calculator
Financial Independence, Retire Early — find your magic number and the monthly SIP to get there.
Frequently Asked Questions
What is FIRE?
FIRE stands for Financial Independence, Retire Early. It is a financial lifestyle movement where people save aggressively to build a corpus large enough to sustain expenses for the rest of their life without needing to work.
What is the 4% rule?
The 4% rule (from the Trinity Study) states that you can withdraw 4% of your corpus annually and it will likely last 30+ years. This means your FIRE number is 25× your annual expenses.
Is the 4% rule valid in India?
The original 4% rule was based on US markets. In India, with higher inflation (6-7%) and different market history, financial planners often recommend 3–3.5% withdrawal rate to be safe, implying a corpus of ~28–33× annual expenses.
What are different types of FIRE?
Lean FIRE: Minimalistic retirement with very low expenses. Fat FIRE: Comfortable retirement with higher expenses. Barista FIRE: Part-time work covers most expenses while corpus grows. CoastFIRE: Corpus is large enough to grow to FIRE number without additional contributions.
Should I factor in healthcare costs for FIRE?
Yes. Healthcare costs increase significantly with age and often outpace general inflation. Build a separate health contingency fund or buy a comprehensive ₹1-2 Cr health insurance policy in addition to your FIRE corpus.
What investment vehicles are best for FIRE in India?
For corpus accumulation: Equity mutual funds (ELSS, flexi-cap, index funds) via SIP. For withdrawal: a combination of equity (for growth) and debt (for stability) in a balanced allocation based on your withdrawal needs.
What are the tax implications of FIRE withdrawals?
Equity LTCG above ₹1.25 Lakhs is taxed at 12.5%. SWP from debt funds is taxed at your income slab. Planning withdrawals strategically can minimize capital gains tax below the ₹7L rebate limit under the New Tax Regime.