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Next toolsAssumptions and methodology
Transparent calculation notes for FIBRE Calculator.
Formula used
The model first accumulates current savings and step-up investments, then funds separately inflated essential, lifestyle, and healthcare spending through life expectancy.
Methodology
- Inflate each spending stream from today's value to every future month.
- Project current corpus and monthly investments to the selected FIBRE age.
- Simulate post-FIBRE returns, passive income, spending, and commitments through life expectancy.
- Calculate exactly, working backward from life expectancy, the minimum starting corpus and monthly investment that avoid depletion and preserve the legacy floor.
Core assumptions
- All monetary inputs are entered in today's value and inflated by their selected rates.
- Monthly investments step up annually and continue until the selected FIBRE age; investments, withdrawals and commitments happen at the start of each month.
- Returns are treated as annual CAGR; the monthly rate is (1 + r)^(1/12) − 1. The SIP calculator uses r/12, so ₹40,000 a month for 20 years at 11% shows ₹3.49 crore there and ₹3.26 crore here.
- Returns remain constant within the accumulation and freedom phases.
- Passive income is counted from the later of its start age and your FIBRE age until its end age.
Not included
- Enter returns net of fund costs and expected tax; the model deducts neither.
- Insurance cover, changing asset allocation, and sequence-of-returns volatility are not modeled separately.
- Future income and one-time commitments can differ from the entered timing and amount.
- Use conservative assumptions and review the plan regularly before making financial decisions.
About FIBRE Calculator
Guide1What is FIBRE planning?
FIBRE planning combines financial independence with resilience. Instead of stopping at a fixed multiple of annual expenses, it checks whether your investments can fund essential spending, lifestyle spending, healthcare, one-time commitments, and a desired legacy through your full life expectancy.
This makes it useful for people who want the option to step away from full-time work early while still planning for the decades that follow.
2How FIBRE differs from FIRE
A traditional FIRE calculator often estimates a target using a withdrawal rate such as 4%. The FIBRE calculator uses a month-by-month lifecycle simulation instead. It separates inflation rates, allows passive or bridge income, includes annual SIP step-up, and tests whether the corpus ever depletes before life expectancy.
3How the FIBRE corpus is calculated
The model first grows your current corpus and monthly investments to the selected FIBRE age. It then applies post-FIBRE returns and subtracts inflation-adjusted expenses and commitments each month. Investments, withdrawals and commitments happen at the start of each month. An exact backward calculation finds the smallest starting corpus that remains funded through life expectancy and preserves the selected legacy floor.
Returns are treated as annual CAGR; the monthly rate is (1 + r)^(1/12) − 1. The SIP calculator uses r/12, so ₹40,000 a month for 20 years at 11% shows ₹3.49 crore there and ₹3.26 crore here.
4How to use this FIBRE calculator
- Step 1: Enter your age, current corpus, monthly investment, and target FIBRE age.
- Step 2: Separate essential and lifestyle expenses in today's money.
- Step 3: Review healthcare, inflation, returns, passive income, legacy, and future commitments under advanced planning.
- Step 4: Compare Conservative, Base, and Growth scenarios and check both the target-age result and earliest achievable age.