FI Ratio Calculator
FI Ratio Calculator
Track your progress to Financial Independence. Your FI Ratio is the percentage of your living expenses covered by passive income.
Monthly Living Expenses
Monthly Passive Income
Investment Corpus (4% Rule)
Generates (Monthly)
₹6,667
Enter your total invested corpus (equity/mutual funds). We assume a safe withdrawal rate of 4% per year, converted to a monthly equivalent.
Your FI Status
You need ₹23,333 more in monthly passive income to reach Financial Independence.
What to do next
Based on your FI Ratio Calculator, here are the tools you should try next:
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The Ultimate Wealth Metric: Your Financial Independence Ratio
Society defines wealth by what you consume: the car you drive, the watch you wear, or the neighborhood you live in. But true wealth is invisible. True wealth is freedom, and the metric that tracks that freedom is your Financial Independence (FI) Ratio.
Your FI Ratio is a simple calculation: Your Monthly Passive Income divided by your Monthly Living Expenses.
If your living expenses are ₹1 Lakh per month, and your investments generate ₹10,000 per month in dividends, interest, or rental income, your FI Ratio is 10%. You are 10% financially independent. It means that if you lost your job today, your assets would cover 3 days of your lifestyle every month.
Most people focus entirely on increasing their salary. But your salary can vanish overnight. When you focus on increasing your FI Ratio, you are building a permanent safety net. You can increase this ratio from both ends: by buying income-generating assets, and by lowering your monthly expenses.
The day your FI Ratio hits 100%, you have reached the crossover point. Working becomes optional. You don't have to quit your job, but you can say no to toxic bosses, take a sabbatical, or pivot to a lower-paying career that you genuinely love. Your FI Ratio is the scoreboard for your freedom.
Frequently Asked Questions
What is a good FI Ratio?
0-25% means you're just starting. 25-50% means you have a solid foundation. 50-75% means you're in the home stretch. 100%+ means you're Financially Independent — work is optional.
How do I increase my FI Ratio?
Two levers: increase passive income (invest more, buy income-generating assets) and decrease expenses (cut lifestyle inflation). Reducing expenses by ₹10,000/month has the double effect of increasing passive income ratio AND lowering the target.
What counts as passive income?
Dividends from stocks/mutual funds, rental income (net of maintenance), interest from FDs/bonds, royalties, and the 4% safe withdrawal rate from your investment corpus. Salary, freelance, and business income are NOT passive.
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