FIRE Calculator
FIRE stands for financial independence, retire early. Your FIRE number is the portfolio large enough to fund your expenses from withdrawals, and this calculator shows how long it will take to build.
Results
FIRE number
₹1,80,00,000
- Time to reach it
- 13 years, 11 months
- Age at FIRE
- 43.9
- Progress towards FIRE
- 16.7%
- Income your portfolio supports today
- ₹10,000
- Yearly expenses
- ₹7,20,000
Your FIRE number is ₹1,80,00,000. At ₹60,000 a month you could reach it in 13 years, 11 months.
Portfolio growth (today's money)
- Portfolio
Show the calculation steps
- FIRE number = annual expenses ÷ withdrawal rate = ₹7,20,000 ÷ 4% = ₹1,80,00,000.
- Real return = (1 + 10%) ÷ (1 + 6%) − 1 = 3.77%, so everything is in today's money.
- Each month: balance = balance × (1 + real monthly return) + ₹60,000 saved, until it reaches ₹1,80,00,000.
- Progress today = ₹30,00,000 ÷ ₹1,80,00,000 = 16.7%. Income the current portfolio could support: ₹10,000 a month.
- The withdrawal-rate rule of thumb (for example 4%) comes from historical studies and is not a guarantee. Use a lower rate for a longer retirement.
The FIRE number and the withdrawal rate
The classic rule of thumb is to save 25 times your yearly expenses, which is the same as withdrawing 4% a year. A lower withdrawal rate needs a bigger portfolio but is safer for retirements of 40 years or more.
Working in today's money
The calculator uses real (after-inflation) returns, so your expenses and savings are in today's money. That keeps the numbers easy to interpret: your FIRE number is what you need in today's purchasing power.
Formula
FIRE number = Annual expenses ÷ Withdrawal rate
Real return = (1 + return) ÷ (1 + inflation) − 1
Each month: balance = balance × (1 + real monthly return) + monthly saving
Where:
- Withdrawal rate
- = The share of the portfolio spent each year
- Real return
- = Return after removing inflation
Example calculation
₹60,000 monthly expenses, ₹30 lakh invested, saving ₹60,000 a month
Inputs
- Current Age
- 30 years
- Monthly Expenses (Today's Money)
- ₹60,000
- Safe Withdrawal Rate
- 4 %
- Current Investments
- ₹30,00,000
- Monthly Saving (Today's Money)
- ₹60,000
- Expected Annual Return
- 10 %
- Expected Inflation
- 6 %
Result
- FIRE number
- ₹1,80,00,000
- Time to reach it
- 13 years, 11 months
- Age at FIRE
- 43.9
- Progress towards FIRE
- 16.7%
- Income your portfolio supports today
- ₹10,000
- Yearly expenses
- ₹7,20,000
Step-by-step
- FIRE number = annual expenses ÷ withdrawal rate = ₹7,20,000 ÷ 4% = ₹1,80,00,000.
- Real return = (1 + 10%) ÷ (1 + 6%) − 1 = 3.77%, so everything is in today's money.
- Each month: balance = balance × (1 + real monthly return) + ₹60,000 saved, until it reaches ₹1,80,00,000.
- Progress today = ₹30,00,000 ÷ ₹1,80,00,000 = 16.7%. Income the current portfolio could support: ₹10,000 a month.
Important notes
- The withdrawal rate rule is based on historical data and is not a guarantee.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
What is a FIRE number?
The portfolio size at which withdrawals at your chosen rate cover your yearly expenses: annual expenses ÷ withdrawal rate.
Is 4% safe for early retirement?
It was designed for around 30 years. For retirements of 40 or more years, many people use 3–3.5%.
What are Lean, Fat and Barista FIRE?
Variants with lower expenses (lean), higher expenses (fat) or part-time income covering some costs (barista). Change the expenses to model each.
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