What is a Mutual Fund SIP?

A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds that allows you to invest a fixed sum of money at regular intervals (monthly, weekly, or daily) into a chosen mutual fund scheme.

What is the difference between Nominal Returns and Real Returns?

Nominal returns show the raw monetary value of your portfolio without accounting for price increases. Real returns adjust the future value for inflation, taxes (12.5% LTCG), and fund management expense ratios, showing actual future purchasing power in today’s rupees.

How is Long-Term Capital Gains (LTCG) tax calculated on Mutual Fund SIPs in India?

Per Union Budget 2024, equity mutual fund capital gains held for more than 12 months are tax-exempt up to ₹1.25 Lakh per financial year. Net long-term capital gains above ₹1.25 Lakh are taxed at 12.5% (plus 4% cess).

What is the difference between Lean FIRE, Regular FIRE, and Fat FIRE in India?

Lean FIRE covers only basic living expenses (~75% of current expenses), Regular FIRE maintains your standard lifestyle (25x-30x annual expenses), while Fat FIRE provides an abundant retirement budget (1.5x-2x regular expenses) for extensive travel and luxuries.

What is a Safe Withdrawal Rate (SWR) in India?

In India, due to higher historical inflation rates (5-7%), a Safe Withdrawal Rate between 3.0% and 3.5% is generally recommended for 30+ year retirements rather than the traditional US 4% rule.

How do I calculate my FIRE number in India?

Your FIRE number is calculated by projecting your current annual living expenses to your desired retirement age adjusted for inflation, then multiplying by 25 to 33 (corresponding to a 3% - 4% safe withdrawal rate).

Financial Independence, Retire Early

FIRE & Fat FIRE Calculator India: Calculate Your Exact Early Retirement Number

Plan Lean, Standard, and Fat FIRE retirement in India. Calculate your target corpus, safe withdrawal rate, and years to financial freedom.

Step 1: Choose Your FIRE Archetype

Click a card to switch calculation strategy

Regular FIRE: Saves 25x to 28x your current annual expenses. Based on the 4% / 3.5% safe withdrawal rule, ensuring your corpus lasts 30–40+ years.

Ideal for: Anyone seeking complete financial freedom without altering current living standards.

Step 2: Enter Financial Details

Real-time update

Current Age

Yrs

Target Retire Age

Yrs

Current Invested Net Worth₹15,00,000

₹

Monthly Living Expenses (Today)₹60,000 / mo

₹

Annual Today: ₹7,20,000Adjusted for Regular FIRE: ₹7,20,000 / yr

Monthly Investment (SIP)₹50,000 / mo

₹

Annual Step-Up (%)

Expected Return (%)

Inflation Rate (%)

SWR Rule (%)India std: 3.5%

Quick What-If Tweaks:

Target FIRE Strategy

Regular FIRE

Required Multiplier28.6x Annual Expenses

Target FIRE Corpus (Today's Value)

₹2.1Cr

Exact purchasing power required at a 3.5% withdrawal rate.

Corpus at Age 45 (Inflation Adjusted)

₹5.5Cr

Accounting for 6% inflation over 17 years.

Estimated Freedom Age

Age 43In 15 years (2041)

Current Progress7%

Coast FIRE Target Today: ₹35.3L

42% Coast Met

Wealth Trajectory vs FIRE Target

Portfolio growth (SIP + returns) intersecting the inflation-adjusted FIRE Target line

Understanding FIRE in the Indian Context

Key principles, Trinity study adaptations, and safe withdrawal rules for Indian investors

Why 3.5% SWR for India?

The famous 4% rule originated in the US Trinity Study for 30-year retirements. In India, with higher long-term inflation (5-7%) and longer retirement horizons (40-50 years for early retirees), financial planners recommend a conservative 3.0% to 3.5% Safe Withdrawal Rate (28x to 33x expenses).

The Power of Annual Step-Up

Increasing your SIP contributions by 10% to 15% each year alongside salary increments drastically reduces your time to FIRE—often shaving 5 to 10 full years off your retirement age!

Coast FIRE & Mental Peace

Reaching Coast FIRE early removes financial anxiety. Once your existing portfolio has enough time to compound into full FIRE, you can switch to passion projects or lower-stress jobs without needing to save another rupee.

Financial Planning Suite