How much do I need to retire early?

Your annual spending divided by the withdrawal rate you are prepared to assume. At ₹12,00,000 of spending, a 4% rate implies ₹3 crore and a 3% rate implies ₹4 crore. The calculator computes it from your own figures rather than applying a rule, because the rate is a judgement rather than a fact.

Is the 4% rule safe in India?

This calculator takes no position on that, and treats the rate purely as your input. Widely quoted rates derive from studies of specific markets and historical periods, and applying them to a different market, tax regime and lifetime is an assumption rather than a finding. The withdrawal scenarios show what more conservative rates cost in target size.

Why does the calculator use a real return instead of my return?

Because the target is expressed in today's spending. Growing the corpus at the nominal return while comparing it against a today's-money target would mix future rupees with present ones and shorten the timeline artificially. Subtracting inflation keeps both sides in the same units.

Does this account for tax on withdrawals?

No. Every figure here is before tax, so a corpus that appears sufficient will fund less spending than shown once tax is applied. Treat the target as a floor rather than a complete answer.

What if I plan to earn something after becoming independent?

Any income after that point is not modelled, and it reduces what the corpus must fund. A practical way to reflect it is to enter only the spending the corpus itself needs to cover, rather than your total spending.

Why does it say the target is unreachable?

Because at the monthly amount and assumptions entered, the corpus does not reach the target within the 60 years modelled. Rather than show a misleading number, the calculator says so — the scenarios then show what a higher monthly amount, lower spending or a higher withdrawal rate would do.

Investment · FINANCIAL TOOLS

FIRE Calculator

Work out the corpus your spending would need, and how long your current saving would take to reach it.

Understand the calculation

Calculation logic, formula, example and guardrails behind the estimate.

How it works

The target comes from two numbers you choose. Annual spending divided by your withdrawal rate gives the corpus: a 4% rate implies 25 times spending, a 3% rate implies about 33 times. The multiple is a consequence of your assumption, not a rule this calculator applies.

Accumulation then runs forward month by month on the **real** return — your return assumption net of your inflation assumption. This matters more than it sounds: the target is expressed in today's spending, so growing the corpus at a nominal rate would compare a future-rupee corpus against a today-rupee target and overstate progress considerably.

More detail

The calculator also reports the monthly amount that would reach the target over the same horizon, given what you already hold, so you can see the gap between what you are doing and what the target implies.

When the target is not reached within 60 years the calculator says so rather than showing a misleading figure.

To model drawing from the corpus once you get there, use the SWP calculator.

Because spending drives both the target and what you can invest, the savings rate calculator.

Formula

Target = Annual spending ÷ Withdrawal rate; real return = (1 + r) ÷ (1 + i) − 1

Accumulation is stepped monthly at the real return rather than solved in closed form, because the stopping condition is reaching the target rather than a fixed number of periods.

Annual spending: What you expect to spend each year, in today's money.
Withdrawal rate: Share of the corpus taken in the first year — your assumption, and the input the target is most sensitive to.
r: Assumed nominal annual return before inflation.
i: Assumed annual inflation.

Worked example

₹12,00,000 of annual spending at a 4% withdrawal rate, with ₹50,00,000 already invested and ₹75,000 a month going in, assuming an 11% return and 6% inflation.

01Target corpus₹12,00,000 ÷ 0.04 = ₹3,00,00,000
02Real return1.11 ÷ 1.06 − 1 = 4.72%
03Still to accumulate₹2,50,00,000
04At a 3% withdrawal rate insteadTarget becomes ₹4,00,00,000

Dropping the withdrawal rate from 4% to 3% raises the target by a third — from ₹3 crore to ₹4 crore — without changing anything about the spending. That single assumption moves the answer more than the return assumption does, which is why it is an input here rather than a built-in rule.

Important considerations

01
The withdrawal rate is the assumption that matters most
It sets the multiple directly: 5% means 20× spending, 4% means 25×, 3% means 33×. Moving it by one percentage point changes the target by more than a two-point change in the return assumption would. That is why it is an input you set rather than a number this calculator picks.
02
Spending drives both sides of the equation
Lower spending shrinks the target and simultaneously frees more to invest, so it compounds in two directions at once. This is why the spending scenario usually moves the timeline more sharply than the return scenario does.
03
Sequence of returns is the risk a flat rate cannot show
Two portfolios averaging the same return can end very differently if one falls early in the withdrawal phase. Treat a comfortable-looking timeline as a central case rather than a safe one, and test it at a return two or three points lower.
04
Real, not nominal
Because the target is in today's spending, accumulation here runs on the real return. Calculators that grow the corpus at the nominal rate against a today's-money target will show a materially shorter timeline — the difference is not small over two decades.

Limitations

The withdrawal rate is not validated by this calculator. Widely quoted rates come from studies of particular markets and periods, and none of them is a guarantee for an Indian portfolio over your lifetime.
Tax is excluded. A corpus that funds spending before tax funds less after it, so the real target is higher than the figure shown.
A constant return hides sequence risk. A poor few years just after you stop earning does disproportionate damage, because you are selling into a fall — something no single average rate can show.
Healthcare inflation typically outpaces general inflation, and this calculator applies one rate to everything.

Frequently asked questions

Common questions about the fire calculator and the assumptions behind it.

Next useful checks

Move from this result to the next decision without hunting through the full calculator list.

Net Worth CalculatorPut this result into your full asset-liability picture.Savings Rate CalculatorCheck how much of income is actually being saved.Debt-to-Income Ratio CalculatorCheck debt load before taking another commitment.

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Disclaimer

This calculator is provided for general information and planning only. It is not investment, tax or legal advice, and it does not take your personal circumstances into account. Outputs are estimates based on the assumptions stated on this page, exclude taxes and charges unless said otherwise, and market-linked returns are not guaranteed — the value of investments can fall as well as rise. Lending terms, rates and eligibility are decided by the lender. For advice on your own situation, speak to a qualified professional, several of whom you can consult on Finvestalk.