FIRE Calculator
Wondering when work could become optional? Put in your numbers and see what your money could grow into, what you could draw each month, and the age your alarm clock gets a day off.
Advanced: capital gains tax
Needed: savings or SIP, years to invest and expected return.
How the calculator works
- Your savings and monthly SIP grow at the yearly return you enter. The SIP is added at the end of each month and rises by your step-up each year.
- Inflation raises your expenses every year. The corpus needed is your yearly expenses divided by the withdrawal rate.
- Capital gains tax, if you turn it on, is taken off the gains at the end. The headline corpus is shown before tax, and the corpus you keep is shown after it.
- The withdrawal check takes your after-tax corpus, withdraws your chosen percentage in the first year, raises it with inflation after that, and lets the rest keep earning your return.
Want to see where to put the money? Browse companies in the Stock Explorer or read the glossary for plain-language explanations of the terms used here.
Common questions
What is FIRE?
FIRE stands for Financial Independence, Retire Early. It means building a corpus large enough that the money you withdraw from it each year can cover your living costs, so work becomes a choice.
How is the FIRE number worked out?
The calculator takes your yearly expenses, raises them by inflation to the year you are looking at, and divides by your withdrawal rate. At a 4% rate that is 25 times your yearly expenses.
What is the withdrawal rate?
It is the share of your corpus you take out in the first year of retirement. The common starting point is 4%, but it is only a rule of thumb. A lower rate asks for a bigger corpus and a higher rate asks for a smaller one that may not last as long.
How is capital gains tax handled?
This is a simplified view. You enter one tax rate, and it is applied to your total gains as if the whole corpus were sold at the end. Real tax depends on the type of investment, how long you held it, and the rules in force when you sell, so check the current rules or ask a tax professional.
Does the currency switch convert my money?
No. It changes the symbol and the number style only. Type your amounts in the currency you pick.
Are the results a forecast?
No. They are calculations from the numbers you type in. Real returns and inflation change from year to year and are not guaranteed. Scripwise is an information tool, not investment advice.
Scripwise is an information tool, not investment advice. This calculator shows illustrations from the numbers you enter. It does not predict returns, and it is not a recommendation to buy, sell or hold anything.