Selvayana: FIRE calculatorEducational estimate, not investment advice. Selvayana is not registered with SEBI as an Investment Adviser or Research Analyst. Figures use the assumptions shown and are not predictions.
FIRE calculator: how much do you need to retire early?
To stop working at 45 with ₹50,000 of monthly expenses today, you’d need about ₹4.82 Cr. Starting at 30 from zero, that takes a SIP of about ₹84,097 a month, rising 5% a year, at an assumed 11% return.
Retire at 40₹1,54,591/mo
Retire at 50₹50,358/mo
Retire at 60₹19,621/mo
FIRE stands for financial independence, retire early. At 6% inflation, ₹50,000 a month today becomes about ₹1,19,828 a month by 45, and the corpus has to pay that, rising every year, for 40 years until 85 at an assumed 7%. Returns are not guaranteed and can be much lower. Change the ages, expenses and returns below to match your own plan.
Your FIRE number is the corpus that lets you stop depending on a salary: enough to pay your living costs for the rest of your life from investments alone.
Why this isn’t simply 25 times your expenses
The popular “25 times annual expenses” rule (the 4% rule) comes from US data over 30-year retirements. Retiring at 45 means planning for 40 years or more, and Indian inflation has been higher. In the example above, 25 times the yearly expenses at 45 is about ₹3.59 crore, well short of the ₹4.82 crore this calculator works out.
How this calculator works it out
It uses the same method as the retirement calculator: expenses grown with inflation to your retirement age, then a corpus that can pay them, rising every year, until your planning age at your assumed post-retirement return.
Good to know
Retiring earlier needs a much bigger monthly saving: the SIP at 40 is nearly eight times the SIP at 60 in this example.
Plan health cover that does not depend on an employer.
Build the full picture, with goals, loans and insurance, in the life plan.
For awareness only. Not investment advice or a recommendation to buy, sell or hold any security or product. All figures are estimates based on the inputs and assumptions shown; actual results will differ and may be much lower. No return is guaranteed. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Consult a SEBI Registered Investment Adviser before acting. Printed from Selvayana on .