Financial Independence/ Retire Early ( FIRE ) Calculator
Take-home income after all taxes. Does NOT include funds for company policies like PF etc.
Income without before any taxes or PF contributions.
The amount you currently spend in a year.
The amount you want to be able to spend in a year after your retirement.
The amount you have currently saved. Can include any assets that will provide a return in the future.
The age where you want your graph to end.
TOTAL ALLOCATION: 100 %
Great ! Your total Allocations equal 100%.
The percentage of your savings that you plan to withdraw every year.
The rate at which you expect the value of money to depreciate.
The percentage which your comapny puts in for your Provident Fund.
The rate at which you expect your annual income to increase.
YOUR FIRE NUMBER: YOUR FIRE AGE:
YEARS UNTIL FIRE:
YEARS SAVINGS WILL LAST:
YEARS UNTIL FIRE:
Total Savings Explained
|Age||Years Elapsed||Annual Income||Annual Savings||Net Worth|
Why use this calculator:People are always wondering when they will be able to achieve financial independence so that they can retire early and live peacefully. Calculating this becomes difficult if proper help is not provided. This Financial Independence/ Retire Early calculator on other hand makes calculations simple by taking various inputs and finally giving the output that is needed.
How to use this Calculator
- One needs to put in their current age as well as their take home income and annual salary. Take home pay is different from annual salary. Take home pay is the money left from annual salary after tax deductions, benefits and voluntary contributions. Add in your present as well approximate after retirement spending along with your current net worth. Add the age where you want the graph to end.
- After these initial inputs put up the percentage of your savings you have allocated to various investments. These include fixed payment investments such as bonds or equities (stocks). There are options for other kind of asset allocation as well.
- Inflation plays an important factor. Even a slight change in inflation rate can increase or decrease the purchasing power of money exponentially. Add in the present inflation rate along with the safe withdrawal rate which is the percentage of earnings you plan to withdraw each year.
- The company you work in also puts in money from your annual salary to a provident fund account. Put in the company EPF rate as well.
- Approximate the rate at which you expect your earnings to grow and add that value. Finally, you will receive the outputs which include the age at which you will be able to retire and the amount you will have by then as your savings. It will also give the number of years the savings will last.