The advanced calculator adds five important features: 1) Your existing investment portfolio, 2) Customization of expected real return rates, 3) Flexibility to adjust post-retirement expenses, 4) Income growth projection, and 5) Separate expenses growth rate setting. These allow for much more realistic and personalized FIRE planning that accounts for career progression and changing economic conditions.

Income growth often outpaces expenses growth, especially during the early and middle stages of a career. While your expenses might grow at 5-6% annually due to inflation and lifestyle changes, your income might grow at 8-15% annually through promotions and career advancement. This calculator lets you model this difference, which significantly impacts your savings rate over time and can accelerate your path to FIRE.

Real return rate is your investment return after accounting for inflation. For example, if your investments earn 12% and inflation is 6%, your real return rate is approximately 6%. Historically, Indian equity markets have delivered 6-7% real returns over long periods, while debt instruments might yield 1-2% real returns. A balanced portfolio might achieve 3-5% real returns. It's generally advisable to use conservative estimates (3-5%) for FIRE planning.

Several expenses typically decrease in retirement: work-related costs (commuting, professional attire), possibly housing costs if your mortgage is paid off, and potentially lower taxes. However, some expenses may increase, particularly healthcare and leisure activities. Many FIRE planners estimate 70-80% of pre-retirement expenses, but this varies greatly based on your lifestyle, healthcare needs, and whether you plan to travel extensively or pursue expensive hobbies.

Your existing investments can dramatically accelerate your path to FIRE. For instance, if your target FIRE number is ₹2 crores and you've already saved ₹50 lakhs, you're 25% of the way there before accounting for any future contributions or investment growth. The calculator factors in both the current value and the compound growth of your existing portfolio alongside your new savings to provide a more accurate FIRE timeline.

If your income grows faster than your expenses (which is common during career progression), your savings rate naturally increases over time. For example, if your income grows at 8% while expenses grow at 6%, each year you'll have a larger percentage available for savings. This calculator models this effect, showing how your savings rate improves over time and accelerates your journey to financial independence.

This calculator uses the widely accepted 4% safe withdrawal rate (25x annual expenses) as the foundation for determining your FIRE number. This rate is based on historical data suggesting a 4% inflation-adjusted withdrawal rate has a high probability of sustaining a 30-year retirement. For very long retirements (40+ years), some financial experts recommend using a more conservative 3-3.5% withdrawal rate.