You will reach ₹2.06 Cr by age 45. Shortfall: ₹1.53 Cr.
What is the FIRE Movement?
FIRE stands for **Financial Independence, Retire Early**. It is a lifestyle movement whose goal is to gain financial freedom long before the traditional retirement age. Financial Independence is reached when your "FIRE Number" (your invested assets) is large enough to sustain your lifestyle indefinitely without you ever needing to work for money again. This is typically calculated using the **25x Rule**, which states that once you have 25 times your annual expenses invested, you are financially independent. The movement focuses on high savings rates (often 50-70% of income) and low-cost index fund investing to accelerate the journey to freedom.
The FIRE Number Logic
Future Expenses = Current Expenses × (1 + Inflation)^Years
How to reach FIRE
- Input your current age and your target early retirement age
- Enter your expected monthly expenses after retirement (inflation-adjusted)
- Specify your current invested assets and monthly contributions
- Calculate your 'FIRE Number' and see the exactly when you will reach it
Who is the FIRE Calculator for?
- When you want to stop working in your 30s, 40s, or 50s
- To calculate your "Lean FIRE" (minimal survival) vs "Fat FIRE" (luxurious lifestyle) numbers
- To understand the impact of increasing your savings rate on your retirement timeline
- When planning a career break or "Coast FIRE" where you stop contributing but let the corpus grow
- To audit your current expenses and see how many years of freedom they represent
Real-World Examples
Lean FIRE (Basic Living)
Focusing on minimal expenses to retire as quickly as possible.
💡 With a very frugal lifestyle, the path to freedom is much shorter.
Fat FIRE (Comfortable Living)
Aiming for a high-quality lifestyle without financial constraints.
💡 Higher security requires a larger corpus but provides protection against high inflation.
Coast FIRE (The Slow Path)
Investing heavily early on so the corpus grows on its own later.
💡 Compounding does the heavy lifting, allowing you to work less in your 30s.
Types of FIRE Strategies
Choose the path that matches your lifestyle goals.
| Strategy | Description | Savings Goal | Lifestyle |
|---|---|---|---|
| Lean FIRE | Frugal living, fast exit | 25x expenses | Minimalist |
| Traditional FIRE | Average living standards | 25x-33x expenses | Standard |
| Fat FIRE | Luxurious retirement | 33x-50x expenses | Premium |
| Barista FIRE | Partial work for benefits | Variable | Flexible |
Accelerating Your Path to FIRE
Why your Savings Rate is more important than ROI
While investment returns (ROI) are important, your savings rate is the math that determines when you cross the finish line. If you save 10% of your income, it takes 9 years of work to buy 1 year of retirement. If you save 66%, 1 year of work buys you 2 years of retirement!
Inflation and the Indian Context
In India, we recommend a "Buffer Multitude." Instead of 25x, aim for 33x or 40x. This acts as a shield against the 6-8% inflation and 10%+ medical inflation seen in the Indian economy over the last two decades.
FIRE FAQ
Is FIRE possible for everyone?
FIRE is possible for anyone with a surplus of income over expenses. While high earners can reach it faster, even moderate earners can achieve it through extreme frugality and disciplined investing over 15-20 years.
What is the 4% rule in FIRE?
The 4% rule suggests that you can safely withdraw 4% of your total retirement assets in the first year of retirement and adjust the amount for inflation every year thereafter, with a high probability that the money will last at least 30 years.
How is FIRE different from traditional retirement planning?
Traditional retirement assumes you stop working at age 60. FIRE focuses on reaching financial independence as soon as possible, often in one's 30s or 40s, by aggressively optimizing both income and expenses.
What are the common risks of early retirement?
The biggest risks include Sequence of Returns Risk (a market crash early in retirement), unexpected medical emergencies, and the psychological impact of losing the 'purpose' that work provides.