FIRE Calculator
Most Indian families don’t know their FIRE number. This FIRE calculator tells you, adjusted for Indian inflation, family obligations, and tax.
A plain-English breakdown of every metric, formula, and assumption behind your results — so nothing is a black box.
1. Net Worth
Formula: Net Worth = Total Assets − Total Liabilities
This is the single most important number in personal finance. It tells you what you would have left if you sold everything you own and paid off every debt today.
2. Total Assets & Liabilities
Total Assets = Cash & Bank Savings + Investments + Property & Other Assets. Use current market value, not what you originally paid.
Total Liabilities = outstanding principal on all loans + credit card/other debts. Always use the outstanding principal from your bank statement, not the original sanction amount.
3. Debt-to-Asset Ratio
Formula: (Total Liabilities ÷ Total Assets) × 100
- Below 30% — Healthy. Comfortable debt load.
- 30%–50% — Watch list. Manageable but limits savings capacity.
- Above 50% — High stress. A job loss or rate hike could cause cash-flow problems.
4. Liquidity Ratio
Formula: Cash & Bank Savings ÷ Monthly Expenses (expressed in months)
How long your liquid cash alone would cover living expenses if all income stopped today. Investments and property are not counted because they can't always be liquidated quickly without a loss.
- Below 3 months — Danger zone. Build your emergency fund first.
- 3–6 months — Standard emergency buffer.
- 6+ months — Strong cushion, especially if self-employed.
5. FIRE Target Corpus (The 25× Rule)
FIRE = Financial Independence, Retire Early. The total corpus at which investment returns alone can cover your lifestyle indefinitely.
Trinity Study Rule: FIRE Target ≈ Annual Expenses × 25. This derives from a safe withdrawal rate of 4% per year — historical market data suggests the portfolio is unlikely to run out over a 30-year retirement.
For Indian investors, a more conservative 3%–3.5% withdrawal rate (30×–33× annual expenses) is often recommended because of higher inflation and longer life expectancy.
6. FIRE Progress & Remaining Gap
Progress Toward FIRE = (Net Worth ÷ FIRE Target) × 100
Remaining to FIRE = FIRE Target − Net Worth
100% means you could retire today and live off returns.
7. Future Net Worth Forecast
We project net worth forward assuming your current net worth compounds at the expected return AND your monthly SIP continues and also compounds.
Formula: FV = Net Worth × (1 + r)n + Annual SIP × [((1 + r)n − 1) ÷ r]
where r is the annual return and n is the number of years. This is a nominal value — the rupee amount you'll actually see.
8. Inflation-Adjusted (Real) Value
₹1 crore today is not ₹1 crore 20 years from now. Inflation silently erodes purchasing power.
Formula: Real Value = Nominal Value ÷ (1 + inflation)n
Example: at 6% inflation, ₹1 crore in 10 years is worth about ₹55.8 lakh in today's money. Always plan FIRE targets in real terms.
9. Assumptions & Limitations
- Annual compounding is used (monthly compounding gives a slightly higher FV; the difference is small over long horizons).
- Returns are assumed smooth and constant. Real markets are volatile.
- SIP is assumed constant. Step-up SIPs grow the corpus faster.
- Taxes on gains are not modelled. For taxable accounts, effective returns will be lower.
- This tool is for planning and education, not personalised financial advice.