The Math in Plain English
1. Your expenses grow. We take your monthly spend and grow it with inflation every year until you retire.
2. Your money must last. We work out the corpus that pays those rising expenses every year from retirement until the age you choose, while the rest stays invested and keeps earning.
3. We add a buffer. A safety buffer covers capital gains tax on withdrawals and bad market years.
4. We grow what you have. Your mutual funds, NSE and BSE stocks and monthly SIP grow at a blend of equity and debt returns, with your SIP rising every year by the step up.
5. We compare. If your projected corpus beats your FIRE number, you are on track. If not, we show the SIP that closes the gap and the age you can retire on your current plan.
Six Steps to FIRE in India
General education for mutual fund and NSE or BSE stock investors. Not a recommendation to buy any fund or stock. See real 5 to 20 year fund returns in the Mutual Fund Returns Tracker.
Keep 6 to 12 months of expenses in a liquid fund or bank FD before you invest for FIRE.
A pure term plan and a family health cover protect the plan from one bad event.
Pick a few diversified equity funds, such as a Nifty 50 index fund, and run monthly SIPs on autopilot.
Direct stocks need time and discipline. Keep them to a share of the portfolio you can track.
Raise SIPs with every salary hike so your lifestyle does not eat the raise.
Rerun this calculator each year with real numbers and rebalance between equity and debt.
What You Pay When You Sell
- Equity mutual funds and listed stocks held over 12 months. 12.5% tax on long term gains above Rs 1.25 lakh in a financial year.
- Held 12 months or less. 20% tax on short term gains.
- Debt funds bought after 1 April 2023. Gains taxed at your income slab rate.
- Plan tip. Selling just enough each year to keep gains near the Rs 1.25 lakh limit keeps tax low in early retirement.
Rates as per rules in force for FY 2026 to 27. Tax laws change. Check with a tax adviser before you withdraw.
Words You Will See
- Corpus
- The total value of your investments.
- SIP
- Systematic Investment Plan. A fixed amount invested in a mutual fund every month.
- Inflation
- How fast prices rise. Rs 50,000 of expenses today costs much more in 15 years.
- Safe withdrawal rate
- The share of your corpus you take out in the first year of retirement.
- Equity and debt
- Equity means stocks and equity mutual funds. Debt means bonds, debt funds, FDs, PPF and EPF.
- LTCG and STCG
- Long term and short term capital gains tax, the tax you pay on profits when you sell.
Common Questions
What is FIRE?
FIRE stands for Financial Independence, Retire Early. You build an investment corpus large enough that its returns pay for your living costs, so working becomes a choice instead of a need.
What is a FIRE number in India?
Your FIRE number is the corpus you need on the day you stop working. This calculator takes your expenses today, grows them with inflation to your retirement year, and works out the corpus that keeps paying those rising expenses until your chosen life expectancy.
Does the 4% rule work in India?
The 4% rule comes from US market data with lower inflation. Indian inflation has usually been higher, so many Indian planners use a safer withdrawal rate of 3 to 3.5%, which means a corpus of roughly 28 to 33 times your yearly expenses. This calculator shows the rule of thumb next to the year by year number.
How are mutual fund and stock withdrawals taxed in India?
For equity mutual funds and listed shares on NSE or BSE held for more than 12 months, long term capital gains above Rs 1.25 lakh a year are taxed at 12.5%. Gains on units held for 12 months or less are taxed at 20%. Debt fund units bought after 1 April 2023 are taxed at your income slab rate. Tax rules change, so confirm with a tax adviser before you withdraw.
What return should I assume?
Use a number you are comfortable with, not the best year you remember. Returns on equity funds and stocks swing a lot from year to year. The defaults here are assumptions for planning, not promises. Try a lower return to see how much safety margin your plan has.
What is a SIP step up?
A step up raises your monthly SIP by a fixed percentage every year, usually in line with salary hikes. Even a 10% yearly step up can bring your FIRE date forward by several years.
What is Coast FIRE?
Coast FIRE is the amount you need invested today so that, without adding another rupee, it grows into your full FIRE number by your target retirement age. Once you cross it, you only need to earn enough to cover current expenses.
Is this financial advice?
No. This is an educational calculator. Syed Hadi is not a SEBI registered investment adviser. Talk to a SEBI registered adviser before you make investment decisions.
This calculator is for education only and does not account for every personal situation. It is not investment, tax or legal advice. Syed Hadi is not a SEBI registered investment adviser. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past returns do not guarantee future returns.