What is the FIRE Movement?
FIRE (Financial Independence, Retire Early) is a lifestyle movement with the goal of gaining financial freedom at a young age (often in the 30s or 40s) rather than the traditional retirement age of 60.
The core principle is aggressive saving (50-70% of income) and low-cost investing to build a Corpus that generates enough passive income to cover living expenses forever.
Types of FIRE: Which one are you?
| Type | Lifestyle | Corpus Required |
|---|---|---|
| Lean FIRE | Frugal / Minimalist | < 25× Expenses |
| Regular FIRE | Standard Lifestyle | 25× – 30× Expenses |
| Fat FIRE | Luxury Lifestyle | > 50× Expenses |
| Barista FIRE | Part-time Work | 15× – 20× Expenses |
Core Concepts of FIRE
- FIRE Number: The target corpus amount. Formula: Annual Expenses × 25 (or 30).
- Safe Withdrawal Rate (SWR): The percentage of your corpus you can withdraw annually without running out of money (typically 4% globally, 3% in India).
- Rule of 25: Based on the 4% SWR, you need 25 times your annual expenses invested to retire.
Safe Withdrawal Rate (SWR) in India
Is the 4% Rule Safe for India?
The 4% rule was designed for the US market. India has higher inflation (6%-7%).
Therefore, many Indian financial planners recommend a more conservative withdrawal rate of
3% to 3.5%. This means you might need 33x your annual expenses
instead of 25x.
How This Calculator Helps You
Reality Check
Know if your current savings rate is enough to retire by 45.
Inflation Impact
Expenses double every 10–12 years — this calculator adjusts for it.
Gap Analysis
Calculates the exact SIP needed to hit your FIRE goal.
FIRE Calculation Formula
The formula used to calculate your Financial Independence number:
Where SWR is your Safe Withdrawal Rate (e.g. 3%–4%).
Why Pursue FIRE?
- Freedom of Time: Control your schedule.
- Reduced Stress: No dependence on a paycheck.
- Purpose-driven Life: Work by choice, not compulsion.