Financial Freedom Calculator
Key takeaways
- A ₹1.00 L monthly passive income at a 6% sustainable yield needs a ₹2.00 Cr corpus — ₹1.90 Cr more than the corpus held today.
- Adding ₹50,000 a month at 12% growth, the corpus gets there in year 12.
- At a 7% yield, the same income would need ₹1.71 Cr — ₹28.57 L less corpus.
Yearly schedule
The corpus reaches the fixed ₹2.00 Cr target in year 12 — unlike the FIRE calculator’s, this target does not inflate year to year.
| Year | Invested | Growth | Corpus |
|---|---|---|---|
| 1 | ₹16.00 L | ₹1.61 L | ₹17.61 L |
| 2 | ₹6.00 L | ₹2.57 L | ₹26.18 L |
| 3 | ₹6.00 L | ₹3.66 L | ₹35.85 L |
| 4 | ₹6.00 L | ₹4.89 L | ₹46.73 L |
| 5 | ₹6.00 L | ₹6.27 L | ₹59.00 L |
| 6 | ₹6.00 L | ₹7.82 L | ₹72.83 L |
About the Financial Freedom Calculator
The Financial Freedom Calculator answers a narrower question than a full retirement plan: what corpus would generate a chosen monthly passive income at a chosen sustainable yield, and how many years of investing it takes to build that corpus. It does not ask about living expenses or a retirement date — only about an income figure you pick.
Enter the monthly passive income being targeted and the yield the corpus is assumed to generate — dividends, rent, interest, or whatever the income is expected to come from. Then enter the corpus held today, the amount invested each month, and the growth rate expected while the corpus is still being built.
"Corpus needed" is annual income divided by the yield. "Years to reach it" is how many years of investing at the entered rate it takes the corpus to get there, found by compounding monthly and checking once a year, capped at sixty years — beyond which the output shows "—" instead of a number. "Shortfall today" is simply how much more corpus would be needed right now to already be there, and it is zero once the target has been met.
The yield here is static and does not inflate, which is the main simplification. A fixed ₹1,00,000 a month buys less each year, and this page does not adjust for that — the FIRE Calculator is the version that does. Every rate entered is an assumption held flat for the whole period, so the result is the arithmetic of one scenario rather than a forecast.
Frequently asked questions
How is the corpus needed calculated?
Corpus needed = (Target monthly passive income × 12) ÷ sustainable yield as a decimal. ₹1,00,000 a month is ₹12,00,000 a year; at a 6% yield that needs ₹2,00,00,000. Halve the yield and the corpus doubles, which is why the yield assumption dominates the answer.
What counts as a sustainable yield?
This page does not define one — it applies whatever figure is entered. In practice the yield depends entirely on what the corpus is invested in, and yields on the same asset change over time. Entering a lower yield and a higher one shows how sensitive the corpus figure is to that single assumption.
Why does this differ from the FIRE calculator?
FIRE replaces inflation-adjusted expenses, so its target grows every year of the search. This page targets a fixed income figure at a fixed yield, so the target never moves. Neither is a substitute for the other: the fixed version is simpler, and the inflating version is the one that matters over a long horizon.
Does the passive income keep up with inflation?
Not in this model. The income target is a fixed rupee figure, so its purchasing power falls over time at whatever the inflation rate turns out to be. There is no inflation field on this page at all — that is the deliberate difference from the FIRE Calculator, which does model it.
Why does "Years to reach it" show a dash?
Because sixty simulated years passed without the corpus reaching the target — most often when nothing is being added monthly, or when the target is very large relative to the corpus and the amount invested. "Corpus needed" and "Shortfall today" are still shown, since neither depends on the search.
Is the growth rate the same as the yield?
No, and they do different jobs. The growth rate applies while the corpus is being built and drives how quickly it gets there. The yield applies afterwards and decides how large the corpus has to be. They are entered separately because there is no reason they would be the same number.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation to buy, sell or hold any investment. Where a rate of return, inflation or growth is an input, it is an assumption: actual returns vary and are not guaranteed, and past performance may or may not be sustained in future. It does not take your personal circumstances into account. Actual returns and inflation move unevenly from year to year, which changes how long a corpus lasts. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.