FIRE Calculator

Your FIRE number is the corpus needed to cover your annual expenses indefinitely through withdrawals, typically calculated as annual expenses × 25 (the inverse of a 4% withdrawal rate). Some planners use 30x for a more conservative 3.3% withdrawal rate, especially relevant given Indian inflation history.

Lean FIRE targets a minimal-expense lifestyle with a smaller corpus, standard FIRE targets your current lifestyle maintained indefinitely, and Fat FIRE targets a larger corpus for a more comfortable or upgraded lifestyle post-retirement. The core math is the same — only the target expense level changes.

The 25x rule multiplies your annual expenses by 25 to estimate the corpus needed, based on the 4% safe withdrawal rate. Given India's typically higher inflation and different long-term equity return patterns than the US, many Indian FIRE planners adjust this to 30–33x for added safety margin.

Yes, SIPs are one of the most common vehicles for building a FIRE corpus in India, especially through equity mutual funds for the growth phase. Most FIRE plans combine SIPs during the accumulation years with a shift toward debt or hybrid allocation as the target date approaches, to reduce volatility risk near retirement.

The 4% rule suggests withdrawing 4% of your corpus in the first year of retirement, then adjusting that amount for inflation annually. It was derived from US historical market data (the Trinity Study); Indian FIRE planners often apply a more conservative 3–3.5% given different inflation and market return patterns.