FIRE Calculator (Financial Independence Retire Early - India)

Formula & Calculation Methodology

FIRE Corpus = Future Annual Expenses (Today Expense × (1 + Inflation)^Years) ÷ Safe Withdrawal Rate (3.5%).

Step-by-Step Worked Example

Current Age: 30 | Target Age: 45 (15 Years) | Monthly Expenses: ₹60,000 | Inflation: 6% | SWR: 3.5%

1. Future Monthly Expense at Age 45 = ₹60,000 × (1.06)^15 = ₹1,43,793 / month
2. Future Annual Expenses = ₹17,25,520 / year
3. Safe Withdrawal Multiplier (3.5% SWR) = ~28.6x Annual Expenses
4. Target FIRE Corpus = ₹17,25,520 ÷ 0.035 = ₹4.93 Crore

Why 3.5% Safe Withdrawal Rate (SWR) is Recommended for India

While the US Trinity Study suggests a 4% rule, Indian retirees face higher healthcare and lifestyle inflation (6-7%). A conservative 3.3% to 3.5% Safe Withdrawal Rate ensures a retirement portfolio lasts 40+ years without depleting.

Frequently Asked Questions