FIRE Calculator (Financial Independence, Retire Early)
Your FIRE number is the corpus that can pay your expenses for life. This calculator finds it from today's expenses and a withdrawal rate, then works out how many years of saving it takes to get there in real (inflation-adjusted) terms.
How it works, in one picture
How the FIRE number is calculated
FIRE number = yearly expenses ÷ withdrawal rate. At 3.5% that is about 29× yearly expenses; at 4% it is 25×. The calculator then grows your current investments and monthly contributions at the real return (return minus inflation) until they cross that number, so the answer is in today's rupees and the target does not drift.
Lean, regular and fat FIRE
- Lean FIRE: expenses cut to the bone, smaller number, less margin.
- Regular FIRE: today's lifestyle continues.
- Coast FIRE: you have enough invested that it will grow to the number by normal retirement age without adding more, so you can take a lower-paying job you like.
Why India needs a lower withdrawal rate
The 4% rule comes from US data with 3% inflation and 60+ years of market history. Indian inflation runs 5–6% and equity is more volatile, so most planners suggest 3–3.5% for an early retiree who may need the money for 40–50 years, plus a bucket structure so equity is never sold in a crash.
After the FIRE number: the withdrawal plan
Three buckets for retirement and a glide path for every other goal, on the money you actually hold.
Your actual funds, EPF and FDs fill the jars. Every year of the plan becomes a step like this.
- Bank FD 65% of it₹7.8 L
- Multi asset fund 31% of it₹6 L
- Multi factor fund₹5.9 L
You tick which investments are for goals; the app shares them: near goals get the safe money, far goals the equity.
Plan retirement with your real portfolio
Capital Friends turns this calculation into a plan: it counts your existing funds, EPF and FDs, shows the SIP still needed, and runs the three-bucket withdrawal strategy on your own money. Free, data in your Google Drive.
Frequently asked questions
What is a realistic FIRE number in India?
For ₹75,000 a month of expenses, 29× yearly expenses is about ₹2.6 crore in today's money. Add health insurance and a paid-off home, and keep the number updated for inflation every year.
Is the 4% rule valid in India?
It is a starting point. Because of higher inflation and the long horizon of early retirement, 3–3.5% is safer. Each 0.5% lower adds roughly 4 years of expenses to the target.
Should I include my house in FIRE?
No, unless you plan to sell it. A home you live in does not generate the cash you will spend.
How do I draw down after FIRE?
Use a bucket strategy: 2 years of expenses in safe funds, 5 years in hybrid/debt, the rest in equity, refilled in good years. Capital Friends runs this on your actual portfolio.
More free tools
Corpus you need at retirement and the SIP to reach it.
How long a corpus lasts with monthly withdrawals.
Annualised growth from a start value, end value and years.
Three buckets, refilled in good years, so you never sell in a crash.
Assets minus loans, the number that shows real progress.
Calculators use the inputs you enter and standard formulas; results are estimates, not guarantees. Returns from mutual funds, stocks and other investments are not fixed and can be lower than assumed. Capital Friends is a tracking tool and is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell any security.