Explanation

A FIRE (Financial Independence, Retire Early) calculator is like a magical crystal ball for your financial future. It helps you figure out how much money you need to save to retire early and live comfortably without worrying about money. FIRE is all about achieving financial independence so you can retire early if you want to, pursue your passions, or simply have more freedom in life.

Parameters Required for FIRE Calculator

1. Monthly Expenses: This is how much money you spend each month on things like rent, groceries, bills, entertainment, and other essentials. It's important to be honest and include everything you spend money on regularly.
2. Current Age:Your current age helps the calculator understand how much time you have before you want to retire.
3. Retirement Age: This is the age at which you want to stop working and enjoy your retirement.
4. Life Expectancy:his is how long you expect to live. While it's hard to predict, using an average life expectancy can give you a good starting point.
5. Inflation Rate: Inflation is the rate at which prices for goods and services rise over time. In India, inflation can fluctuate, so it's important to factor this into your calculations to ensure your money will still be enough in the future.

How the FIRE Calculator Works

Once you enter these parameters into the FIRE calculator, it does some fancy math to figure out how much money you need to save to reach your goal of financial independence. It considers things like how much your money will grow over time through investments, how inflation will affect your expenses, and how long your savings need to last.
For example, let's say you're 30 years old, want to retire at 45, expect to live until 85, spend ₹50,000 per month, and inflation is around 5%. The calculator will tell you how much money you need to have saved by the time you're 45 to sustain your ₹50,000 monthly expenses until you're 85, factoring in inflation.