Your path to Financial Freedom

FIRE stands for Financial Independence, Retire Early. It is a financial framework focused on deliberate savings, disciplined investing, and portfolio structuring so that passive returns cover all your living expenses, enabling you to retire or work on your own terms decades earlier than age 60.

Your FIRE number is the total investment corpus required at retirement to sustain your post-retirement lifestyle indefinitely. It is calculated using present value of annuity modeling based on your inflation-adjusted monthly expenses at retirement, life expectancy, and expected post-retirement portfolio return.

Variations include: Lean FIRE (retiring with minimal, frugal expenses), Fat FIRE (retaining or enhancing an affluent lifestyle), Barista FIRE (semi-retirement covering basic expenses with part-time work while the portfolio grows), and Coast FIRE (having invested enough early so compounding meets retirement targets without further contributions).

For Indian diversified equities, long-term historical CAGR ranges between 11-13%. For conservative debt-heavy portfolios, 6-8% is realistic. During retirement, a hybrid asset allocation typically yields 7-9%. Always account for 5-7% inflation to calculate real net purchasing power.

Inflation is crucial in long-term retirement calculations. At 6% inflation, living expenses double roughly every 12 years. ₹50,000/month today translates to ₹1.60 Lakh/month in 20 years. Our calculator models real purchasing power to ensure your corpus never depletes prematurely.

The US Trinity study popularized the 4% safe withdrawal rate. In India, higher inflation requires a slightly conservative withdrawal rate of 2.75% to 3.5% (a 28x to 35x multiple of annual expenses) combined with multi-asset rebalancing across equities, debt, and gold.

SIP step-up increases your monthly investment percentage annually alongside salary hikes. A 10% annual step-up compounds your contribution power dramatically, frequently shortening your time to FIRE by 4 to 8 years.

Starting immediately maximizes the power of compounding. Starting at age 25 vs 35 can cut the required monthly SIP by over 60% for the exact same target corpus.