FIRE Calculator

Key Inputs Needed for a FIRE Calculator

To get accurate results, you’ll need to provide a few basic inputs: 

• Current Age – Your present age helps estimate your investment timeline. 
• Current Annual Expenses – Your current lifestyle cost, excluding major one-time spends. 
• Expected Inflation Rate – Typically 5–6% in India. 
• Expected Investment Return – Usually between 10–12% for equity-heavy portfolios. 
• Retirement Age Goal – The age you wish to achieve financial independence. 
• Life Expectancy – Usually set at 80–85 years for long-term planning. 
• Existing Savings & Investments – The corpus you already have. 
• Monthly Investment Capacity – How much you can invest regularly. 

How the FIRE Calculator Works

A FIRE calculator estimates how much you need to achieve financial independence by factoring in your current expenses, savings, and investment returns. It adjusts your annual spending for inflation to project your future expenses after retirement. 

Based on this, it calculates your total retirement corpus — the amount required to generate passive income that covers those expenses without depleting your savings. The calculator then uses your existing investments, expected returns, and monthly contributions to estimate how long it will take to reach that goal. 

In simple terms, it connects where you are financially today with where you want to be when you no longer rely on a paycheck. 

Real-Life FIRE Example: Mohit’s Journey

Let’s understand how it works through a real-life scenario. 

Step 1: Finding His FIRE Number 

• Mohit, a 32-year-old IT professional in Pune, spends ₹6 lakh a year. 
• He wants to achieve FIRE by age 50. 
• He assumes 5% inflation and 10% annual returns from his investments. 

Using the FIRE calculator, Mohit finds that his FIRE number — the corpus needed to retire comfortably — is approximately ₹3.2 crore. 

Step 2: Planning the Journey to FIRE 

• Current Savings: ₹10 lakh 
• Monthly Investment: ₹40,000 
• Time Horizon: 18 years 

The calculator shows that with consistent investing, Mohit can reach his FIRE number around age 50. He plans to continue investing in a diversified mix of equity mutual funds and index funds to stay on track. 

Why Knowing Your FIRE Number Matters

Your FIRE number gives you a clear target for financial independence. Instead of guessing how much is “enough,” you’ll know exactly what you’re working toward. 

This clarity helps you make smarter decisions about saving, investing, and spending. It also keeps you motivated to stay consistent, even when market conditions fluctuate. 

Most importantly, knowing your FIRE number brings peace of mind — because financial freedom isn’t just about retiring early, it’s about having control over your time and choices. 

Key Benefits of Using a FIRE Calculator

• Provides personalised estimates based on your lifestyle and goals. 
• Helps you visualise your long-term financial future. 
• Encourages disciplined investing and expense control. 
• Enables you to adjust your plan if life circumstances change. 
• Gives you a realistic timeline to achieve financial independence. 

Expert Tips for Effective FIRE Planning

• Start early: The earlier you begin, the more time compounding has to work for you. 
• Track your expenses: Know where your money goes — it’s the first step to saving more. 
• Diversify investments: Mix equity, debt, and alternate assets for stability. 
• Review annually: Life changes — your plan should, too. 
• Don’t ignore inflation: It’s your silent enemy. Always plan for rising costs. 
• Stay invested: Consistency always beats timing the market.