Your FIRE number is 25× your annual expenses — the amount you need invested so that a 4% annual withdrawal sustains you indefinitely. For example, if your yearly expenses are ₹6 lakhs, your FIRE number is ₹1.5 crore. Many Indians use 3.5% withdrawal (28.5× expenses) to account for higher local inflation.
Is the 4% rule applicable in India?
The 4% rule comes from US market data. In India, inflation runs higher (5–7% historically vs 2–3% in the US), so a slightly more conservative withdrawal rate of 3–3.5% is often recommended. This means your FIRE multiple becomes 28–33× annual expenses rather than 25×.
What return rate should I use for FIRE planning in India?
For a long-term equity-heavy portfolio, 10–12% nominal returns are historically reasonable for India (Nifty 50 has averaged ~12–14% over 20 years). Use 8–10% for more conservative planning. After subtracting 6% inflation, your real return is roughly 4–6%.
What is Lean FIRE vs Fat FIRE?
Lean FIRE means retiring on a minimal budget — typically 50–60% of your current expenses. Fat FIRE means retiring with a generous, upgraded lifestyle — 150–200% of current expenses. Regular FIRE uses your current spending as the baseline. This calculator adjusts expenses automatically based on which type you choose.