Financial Independence Calculator
You are financially independent when your investments can pay for your lifestyle without a job. This calculator shows your progress as a percentage and the time left.
Results
Progress towards FIRE
16.7%
- FIRE number
- ₹1,80,00,000
- Time to reach it
- 13 years, 11 months
- Age at FIRE
- 43.9
- Income your portfolio supports today
- ₹10,000
- Yearly expenses
- ₹7,20,000
Your FIRE number is ₹1,80,00,000. At ₹60,000 a month you could reach it in 13 years, 11 months.
Portfolio growth (today's money)
- Portfolio
Show the calculation steps
- FIRE number = annual expenses ÷ withdrawal rate = ₹7,20,000 ÷ 4% = ₹1,80,00,000.
- Real return = (1 + 10%) ÷ (1 + 6%) − 1 = 3.77%, so everything is in today's money.
- Each month: balance = balance × (1 + real monthly return) + ₹60,000 saved, until it reaches ₹1,80,00,000.
- Progress today = ₹30,00,000 ÷ ₹1,80,00,000 = 16.7%. Income the current portfolio could support: ₹10,000 a month.
- The withdrawal-rate rule of thumb (for example 4%) comes from historical studies and is not a guarantee. Use a lower rate for a longer retirement.
Your FI ratio
The FI ratio is your current portfolio divided by your FIRE number. At 100% your investments can, at your chosen withdrawal rate, pay for your expenses indefinitely.
What speeds it up
Your savings rate has a bigger effect than your return in the early years. Cutting expenses helps twice: it raises what you can save and lowers the number you need.
Formula
FIRE number = Annual expenses ÷ Withdrawal rate
Real return = (1 + return) ÷ (1 + inflation) − 1
Each month: balance = balance × (1 + real monthly return) + monthly saving
Where:
- Withdrawal rate
- = The share of the portfolio spent each year
- Real return
- = Return after removing inflation
Example calculation
₹30 lakh invested and ₹60,000 saved each month
Inputs
- Current Age
- 30 years
- Monthly Expenses (Today's Money)
- ₹60,000
- Safe Withdrawal Rate
- 4 %
- Current Investments
- ₹30,00,000
- Monthly Saving (Today's Money)
- ₹60,000
- Expected Annual Return
- 10 %
- Expected Inflation
- 6 %
Result
- FIRE number
- ₹1,80,00,000
- Time to reach it
- 13 years, 11 months
- Age at FIRE
- 43.9
- Progress towards FIRE
- 16.7%
- Income your portfolio supports today
- ₹10,000
- Yearly expenses
- ₹7,20,000
Step-by-step
- FIRE number = annual expenses ÷ withdrawal rate = ₹7,20,000 ÷ 4% = ₹1,80,00,000.
- Real return = (1 + 10%) ÷ (1 + 6%) − 1 = 3.77%, so everything is in today's money.
- Each month: balance = balance × (1 + real monthly return) + ₹60,000 saved, until it reaches ₹1,80,00,000.
- Progress today = ₹30,00,000 ÷ ₹1,80,00,000 = 16.7%. Income the current portfolio could support: ₹10,000 a month.
Important notes
- Everything is in today's money. The withdrawal rate is a guide, not a guarantee.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
What does financial independence mean?
Having investments large enough to cover your living costs without working.
Does 100% mean I must retire?
No. It means work is optional.
How can I get there sooner?
Raise your savings, lower your expenses or earn a higher return. Try each in the calculator.
Related calculators
- FIRE CalculatorWork out your FIRE number and how many years of saving it takes to reach financial independence and retire early.
- Coast FIRE CalculatorFind the amount you need invested today so that growth alone reaches your retirement goal, letting you stop saving.
- Financial Independence Age CalculatorFind the age at which your savings could support your spending without a job, based on your saving rate and returns.
- Retirement CalculatorFind how much you need to retire, whether your savings will get you there and the monthly investment that closes any gap.
Explore more in Retirement & FIRE Calculators.