FIRE Calculator

Lean FIRE means minimalist lifestyle. Coast FIRE means you have saved enough that your corpus will grow to FIRE number by retirement age without further contributions. Fat FIRE means comfortable lifestyle with higher expenses.

The 4% rule has been debated. Some suggest 3% to 3.5% for early retirees with longer horizons. It is a useful starting point but should be adjusted based on your situation.

Add a specific healthcare cost line item to your expenses. Many FIRE planners estimate 5,000 to 15,000 per year for insurance and out-of-pocket costs.

Barista FIRE means quitting your main career but continuing part-time or freelance work that covers a portion of living expenses. This reduces the corpus needed and provides healthcare benefits while still achieving early financial independence.

Healthcare is often the largest unpredictable expense in early retirement. In India, adequate health insurance for a couple can cost 30,000 to 60,000 annually. Factor this into your expenses and consider health insurance as a non-negotiable cost.

Using the 25x rule, your FIRE number would be Rs 50,000 × 12 × 25 = Rs 1,50,00,000 (1.5 crore). However, considering India's 6-7% inflation, a 30x to 33x multiplier may be safer. For Rs 50,000 monthly expenses, target Rs 1.8 to 2 crore for a more secure FIRE.

With a Rs 60,000 salary, aim for a 40-50% savings rate (Rs 24,000-30,000 per month). Invest in a 80-20 equity-debt split expecting 10-12% returns. At this rate, you could reach FIRE in approximately 17-20 years. Focus on increasing income through skills and side hustles to accelerate the timeline.

Use a combination of equity mutual funds (index funds or large-cap for core, mid-cap for growth), PPF for tax-free debt allocation, NPS for additional tax benefits, and direct stocks if you have expertise. Maintain a 70-30 equity-debt split during accumulation, shifting to 50-50 as you approach your FIRE number.

Coast FIRE means you have saved enough that your existing corpus will grow to your FIRE number by traditional retirement age without further contributions. For example, at 30 with Rs 30 lakhs invested at 10%, you could reach Rs 1.5 crore by age 50 without adding any more money.

Health insurance is critical for FIRE in India. Medical inflation runs at 12-14%, far above general inflation. A good family floater policy of Rs 10-20 lakhs can cost Rs 30,000-60,000 annually. Include this as a fixed expense in your FIRE number and maintain a separate medical emergency fund of Rs 5-10 lakhs.