Retirement Calculator (FIRE)

The Early Retirement (FIRE) Predictor calculates the exact age and savings milestone at which you can achieve financial independence and make work optional. It compounds your current assets and ongoing monthly contributions against expected market returns to find when your portfolio can support your lifestyle indefinitely.

### 📊 Savings Rate vs. Years to Retire (Starting from ₹0 Net Worth)

Your savings rate (the percentage of take-home pay you invest) is the single most important factor determining your retirement timeline. Assuming a 8% inflation-adjusted (real) return:

| Savings Rate | % Income Spent | Years to Retire | Typical Lifestyle Mode |

|---|---|---|---|

| 10% | 90% | 51 Years | Standard Traditional |

| 25% | 75% | 32 Years | Moderate Wealth Builder |

| 40% | 60% | 22 Years | Lean FIRE / Frugal |

| 50% | 50% | 17 Years | Standard FIRE |

| 65% | 35% | 10.5 Years | Aggressive / Fat FIRE 🚀 |

*Notice that increasing your savings rate from 10% to 50% cuts your working life by 34 years!*

### 💼 Case Study: Ajay & Shruti's FIRE Journey

Ajay (32) and Shruti (31) had a combined monthly take-home salary of ₹2,00,000.

1. The Lifestyle: They spent ₹80,000/month and aggressively saved/invested ₹1,20,000/month (a 60% savings rate). They had an initial portfolio of ₹15 Lakhs in equity mutual funds.

2. The Target: With ₹80,000/month expenses, their annual retirement budget was ₹9.6 Lakhs. Under the 25x rule, their FIRE target corpus was ₹2.4 Crores (nominal).

3. The Simulation: Assuming a 12% annual return rate and 6% inflation (net 6% real return), the calculator projected they would cross their FIRE target in 11.5 years.

*By age 43, Ajay and Shruti reached their ₹2.4 Crore milestone, allowing them to retire from corporate tech jobs and pursue creative writing and farming.*

### 🧠 Decision Guide: Lean FIRE vs. Coast FIRE vs. Fat FIRE

* Lean FIRE: Living frugally in retirement. Retirement budget is lower than current expenses. Target is 25x of basic survival expenses.

* Coast FIRE: Having enough saved early in life that you can stop adding to your retirement accounts. You just let the existing portfolio "coast" and compound until traditional retirement age while you work a low-stress job to cover daily expenses.

* Fat FIRE: Retiring with an abundant lifestyle. Target is 25x or 30x of premium, high-spend annual budgets. Requires a higher savings rate or longer working tenure.

This predictor uses a compound projection model:

1. Input Demographic Info: Enter your current age, active savings, and expected retirement monthly expenses.

2. Set Savings & Expected Return Rates: Enter how much you can invest monthly and your expected nominal return rate (10%-12% is standard for Indian equity portfolios).

3. Compounding Projector: The calculator estimates your target portfolio (25x annual expenses) and compounds your investments annually until the target is met.