# FIRE

> Enter what you spend, what you have and what you invest. See your FIRE number and the age your investments could cover your spending for good.

Canonical: https://www.moneyplain.app/tools/fire

When could you stop working? Your financial independence age. This is an interactive calculator that runs in the browser: [open it](https://www.moneyplain.app/tools/fire) to try your own numbers.

## How this works

FIRE number: `yearly spending ÷ withdrawal rate`, raised each year by inflation. Your portfolio grows monthly from what you have plus what you invest, and you are financially independent the first year it covers the FIRE number.

### What it assumes

- The “4% rule” comes from US market history over 30-year retirements. Morningstar's [latest estimate](https://www.morningstar.com/retirement/whats-safe-retirement-withdrawal-rate-2026) is 3.9% for 30 years with a 90% chance the money lasts. Retiring early means 40 or 50 years, and India has higher inflation, so this calculator starts at 3.5%.
- One steady return and one steady inflation rate. A crash in your first years of retirement is the biggest risk, and an average hides it.
- Healthcare and education often rise faster than general inflation. If you expect big costs like these, add them to your monthly spending.
- No taxes, pensions, EPF, Social Security or rental income. Income you will still have lowers the number you need.

### Worked example

Spend $4,000 a month, have $50,000 invested, and invest $2,000 a month, raised each year with 3% inflation, at an assumed 10% return. At a 3.5% withdrawal rate your FIRE number is $1,371,429 in today's money, and you get there in about **22 years**, when it has grown to $2,627,799 in the money of that year.

Spend ₹50,000 a month, have ₹10,00,000 invested, and invest ₹40,000 a month, raised each year with 6% inflation, at an assumed 10% return. At a 3.5% withdrawal rate your FIRE number is ₹1,71,42,857 in today's money, and you get there in about **21 years**, when it has grown to ₹5,82,78,233 in the money of that year.

### Learn the idea behind it

- [Compounding: small numbers, big outcomes](https://www.moneyplain.app/learn/compounding)
- [Inflation: the quiet tax](https://www.moneyplain.app/learn/inflation)
- [Risk and reward are the same coin](https://www.moneyplain.app/learn/risk-and-reward)

Terms used here: [Inflation](https://www.moneyplain.app/glossary#inflation), [Real return](https://www.moneyplain.app/glossary#real-return), [Time horizon](https://www.moneyplain.app/glossary#time-horizon), [Drawdown](https://www.moneyplain.app/glossary#drawdown).

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Educational content only; not financial, investment, tax, or legal advice. Numbers are simplified illustrations, not predictions. Source: Moneyplain (https://www.moneyplain.app/).