📌 What is FIRE?
FIRE (Financial Independence, Retire Early) is a lifestyle and financial planning approach where you save and invest aggressively to reach a point where your investments generate enough income to cover your living expenses—allowing you to retire earlier than traditional norms.
The calculator helps you estimate how much money you need to achieve FIRE based on your current expenses, lifestyle expectations, and investment assumptions.
📌 How to Use the Calculator
- Enter your current monthly expenses – This should cover everything you spend on a normal basis today.
- Choose your lifestyle goal – Lean FIRE (minimalist), Regular FIRE (comfortable), or Fat FIRE (luxury).
- Enter expected inflation rate – Average annual rise in expenses (e.g., 6%).
- Safe Withdrawal Rate (SWR) – The percentage of your FIRE corpus you can withdraw annually without running out of money (e.g., 3–4%).
- Your current age – Used to calculate years until FIRE.
- Planned retirement age – When you want to achieve FIRE.
- Expected return on investments (ROI) – Average annual returns you expect from your portfolio (e.g., 11%).
- Retirement duration – How many years you expect retirement to last (e.g., 30 or 40 years).
- Healthcare buffer – Annual amount you want to allocate towards health costs (today’s value).
- Emergency fund – A one-time reserve amount kept aside for emergencies.
Click Calculate → The tool will show your required FIRE corpus and estimated monthly SIP needed to reach it.
📌 Definitions of Key Variables
- Current Monthly Expenses 🏠
Your present spending on living costs. This is the baseline for projecting future expenses.
- Lifestyle Choice (Lean/Regular/Fat FIRE) 🎯
- Lean FIRE: Minimalist lifestyle, lower expenses.
- Regular FIRE: Comfortable middle path.
- Fat FIRE: Luxurious lifestyle with higher spending.
- Inflation Rate (%) 📈
The annual increase in the cost of goods and services. Higher inflation → larger corpus needed.
- Safe Withdrawal Rate (SWR) 💵
The percentage of your FIRE corpus you can withdraw yearly without exhausting it (commonly 3–4%).
- Years until FIRE ⏳
Number of years between today and your target FIRE age.
- Expected ROI (%) 📊
The long-term annual return on your investments.
- Retirement Duration 📆
How many years you expect to be financially independent after retiring.
- Healthcare Buffer 🏥
Extra annual provision for medical expenses (adjusted for inflation).
- Emergency Fund 🚨
A one-time safety reserve, usually kept liquid for immediate access.