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FIRE Calculator
Estimate the corpus you might need for financial independence, based on your annual expenses and a withdrawal rate.
Financial independence number from your expenses and a withdrawal rate
Free to run · to save projections to your live dashboard
Enter values and click Calculate to see results
Worked example
Calculated by the same engine as the calculator above.
- Inputs
- Annual Expenses
- ₹6,00,000
- Withdrawal Rate (%)
- 3.5
- Result
- FIRE Number
- ₹1,71,42,857
- Annual Expenses
- ₹6,00,000
- Withdrawal Rate
- 3.50%
Formula
FIRE number = Annual expenses / (w / 100)
- Annual expenses = yearly spending you want the corpus to fund
- w = withdrawal rate (%): 3.5% by default for ₹, 4% for other currencies
Assumptions
- The FIRE number is annual expenses divided by the withdrawal rate; at 3.5% that is about 28.6 times annual expenses, at 4% it is 25 times.
- Inflation, taxes, market returns and the length of retirement are not modelled.
- The withdrawal rate is your assumption; the 4% rule comes from historical studies and may not fit Indian conditions or long retirements.
- A withdrawal rate of 0 cannot produce a valid number.
- Educational estimate only, not financial advice. Capitallytics does not execute transactions.
FIRE Calculator FAQ
Answers about how this calculator works.
What is the 4% rule?
It suggests withdrawing about 4% of your corpus in the first year of retirement. A 4% rate means you need 25 times your annual expenses.
Is 4% a safe withdrawal rate in India?
It is a rule of thumb from historical studies, not a guarantee. Higher inflation or a long early retirement may call for a lower rate, so try 3% or 3.5% too.
Should I use current or future expenses?
The calculator uses whatever you enter. If you retire years from now, inflate today's expenses with the Inflation calculator first.
How do I know how long it will take to reach my FIRE number?
Use the Savings Goal calculator with the FIRE number as the target, your current savings and monthly contribution.