Knowledge Base

FIRE — Financial Independence, Retire Early

FIRE Number = Annual Expenses × 25 (4% rule)

The 4% rule: If you withdraw only 4% per year, your corpus lasts 30+ years historically.

FIRE Number = 25x your annual expenses. Spending ₹6L/year? You need ₹1.5 Crore.

Lean FIRE: Bare minimum expenses. Fat FIRE: Comfortable lifestyle. Barista FIRE: Part-time work supplement.

In India, consider 3% rule (33x expenses) due to higher inflation and longer life expectancy.

Health insurance is the #1 expense risk in early retirement — get comprehensive cover before retiring.

Pro Tip

Track your actual expenses for 6 months before calculating your FIRE number — most people underestimate by 30-40%.

FIRE — Financial Independence, Retire Early - Complete Guide

Everything you need to know about FIRE and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

FIRE Number = Annual Expenses × 25 (4% rule)

Key Concepts & Rules

The 4% rule: If you withdraw only 4% per year, your corpus lasts 30+ years historically.

FIRE Number = 25x your annual expenses. Spending ₹6L/year? You need ₹1.5 Crore.

Lean FIRE: Bare minimum expenses. Fat FIRE: Comfortable lifestyle. Barista FIRE: Part-time work supplement.

In India, consider 3% rule (33x expenses) due to higher inflation and longer life expectancy.

Health insurance is the #1 expense risk in early retirement — get comprehensive cover before retiring.

Expert Strategy

Track your actual expenses for 6 months before calculating your FIRE number — most people underestimate by 30-40%.

How to use this Calculator?

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