FIRE Calculator

What is FIRE?

FIRE stands for **Financial Independence, Retire Early**. The movement is based on the idea of extreme saving and investing to reach a point where your investment portfolio generates enough income to cover your living expenses for the rest of your life.

The "Rule of 25" in India

The standard FIRE rule suggests you need 25 times your annual expenses to retire (the 4% withdrawal rule). However, for an Indian context, many planners recommend a **Multiplier of 30 or even 40**, because:

• Higher Inflation: India's average inflation (6-7%) is higher than developed markets (2-3%).
• Healthcare Costs: Private healthcare costs in India are rising faster than general inflation.
• Longer Retirement: If you retire at 40, you need your corpus to last for 40-50 years.

How to Speed Up Your Journey

1. Increase Your Savings Rate: The percentage of your income you save is the most important factor in the FIRE math.
2. Optimize Your Asset Allocation: In the accumulation phase, a higher equity exposure (Nifty 50 or Next 50) is often necessary to beat inflation.
3. Control Lifestyle Inflation: Avoid increasing your spending as your salary grows.