Question 1

What is a FIRE number and how is it calculated?

Accepted Answer

Your FIRE number is the total corpus you need to retire and live off investment returns indefinitely. The standard formula is: Annual Expenses at Retirement multiplied by 25. The 25x multiplier comes from the 4% rule, which states that a diversified portfolio can sustain a 4% annual withdrawal for 30 or more years. This calculator adjusts your current monthly expenses for inflation over the years until your target retirement age before applying the multiplier.

Question 2

Is the 4% rule valid for FIRE planning in India?

Accepted Answer

The 4% rule was derived from US market data and US inflation rates of 2-3%. India runs consistently higher inflation (5-7% CPI average over the last decade), which means a 4% withdrawal rate is more aggressive here. Many Indian FIRE planners use a 3-3.5% withdrawal rate, which corresponds to a 28x-33x multiplier. Using 25x (4% withdrawal) as the standard is the minimum target, not an upper bound.

Question 3

What is the difference between Lean FIRE, Barista FIRE, and Fat FIRE?

Accepted Answer

Lean FIRE (20x multiplier) targets a frugal retirement with minimal expenses. Barista FIRE (12.5x multiplier) is semi-retirement where part-time work covers roughly half your costs and your corpus covers the other half at a 4% withdrawal rate. The name comes from working a low-stress part-time job while being largely free from a traditional career. Fat FIRE (40x multiplier) is for those who want a high-spending retirement with a large safety buffer, using only a 2.5% withdrawal rate.

Question 4

What is Coast FIRE?

Accepted Answer

Coast FIRE is the amount you need invested today such that, without any additional contributions, it grows to your standard FIRE number by your target retirement age. For example, if your FIRE number at age 50 is 5 crore and you are 30 today expecting 12% returns, your Coast FIRE number is 5 crore divided by (1.12)^20 — roughly 52 lakhs. Once you hit that number, you could stop contributing to retirement savings and still retire on time. This milestone is particularly valuable for young earners who want to know when their investments are self-sustaining.

Question 5

How does inflation affect FIRE planning in India?

Accepted Answer

Inflation is the most underestimated variable in FIRE planning. At 6% inflation, expenses double roughly every 12 years. If you spend 50,000 per month today and plan to retire in 17 years, your monthly expense at retirement will be around 1.35 lakh. Your FIRE number is calculated on this inflation-adjusted figure, not today's spending. This is why planning with Indian inflation (6-7%) rather than a 2-3% Western assumption changes your FIRE number dramatically.

Question 6

Should my home be included in my FIRE corpus?

Accepted Answer

Only if you plan to sell it or rent it out for income. An owned home reduces your monthly expense by eliminating rent, which lowers your FIRE number. But the home itself is not part of your investable corpus unless you intend to monetize it. Most Indian FIRE planners exclude the primary residence from corpus calculations and treat rent elimination as a benefit that reduces the FIRE number required.

Question 7

How does EPF or NPS affect my FIRE number?

Accepted Answer

EPF and NPS are accumulation vehicles that contribute to your retirement corpus. Your EPF balance and projected NPS corpus at retirement should be counted as part of your investable corpus. This calculator projects only the SIP and existing investments you enter. Add your projected EPF and NPS corpus at retirement to the "Existing Investments" field to get a more accurate picture of whether you are on track.

Question 8

What risks does a FIRE number not account for?

Accepted Answer

A FIRE number is a projection, not a guarantee. Key risks it does not capture include: sequence-of-returns risk (a major market fall in the first few years of retirement is far more damaging than one later), healthcare cost inflation (which often runs at 10-14% in India), longevity risk (outliving a 25-30 year projection), and large one-time expenses like children's education or home repairs. Building a 15-20% buffer above your calculated FIRE number is standard practice.

Question 9

At what age should I start planning for FIRE?

Accepted Answer

Starting at 22 versus 30 gives you 8 extra years of compounding. At 12% annual return, money doubles roughly every 6 years. Starting earlier means dramatically less monthly saving required to reach the same corpus. But starting late is not a reason not to start. Even beginning at 35 with aggressive saving and investment discipline can significantly pull forward a traditional retirement age. This calculator shows exactly what your current monthly SIP projects to, making the impact of starting earlier or later directly visible.

Question 10

Can I retire on 5 crore in India?

Accepted Answer

It depends on when you plan to retire and what your current monthly expenses are. At a 4% withdrawal rate, a 5 crore corpus generates 20 lakhs per year, or about 1.67 lakh per month in today's terms. But if you are retiring 15-20 years from now, your expenses will be significantly higher than today due to inflation. Use this calculator to find what your inflation-adjusted expenses will be at your target retirement age, then check whether 5 crore covers 25 times that figure.

FIRE Calculator

How the FIRE number is calculated

FIRE variants

Calculator inputs explained

Frequently asked questions

Type	Multiplier	Withdrawal rate	Best for
Lean FIRE	20x	5%	Frugal lifestyle, tier-2 city, no dependents
Barista FIRE	12.5x	4% + work	Part-time income supplements corpus withdrawals
Standard FIRE	25x	4%	Full retirement, all expenses from corpus
Fat FIRE	40x	2.5%	Higher spending with a large safety buffer