Score Components
The Freedom Score aggregates three sub-scores. Understanding each lets you target the most impactful improvements.
FI Progress (40 pts)
Formula: min(current_investable_corpus / target_fi_corpus, 1.0) × 40
Target corpus is calculated as:
real_annual_expenses_at_retirement × (1 / safe_withdrawal_rate)
Default safe withdrawal rate: 3.5% (slightly conservative for India's context — see the Methodology page for rationale).
What counts as "investable corpus":
- Equity, mutual funds, NPS, EPF, PPF, gold, debt funds
- Fixed deposits (liquid within a reasonable horizon)
- Excludes: primary residence, illiquid real estate, insurance surrender value
If your score here is low, it means your corpus is a small fraction of what you'll need. The fix is time + consistent investment.
Compounding Quality (40 pts)
Breaks down as:
| Sub-factor | Max pts | What it measures |
|---|---|---|
| Portfolio-weighted return | 20 | Expected CAGR vs age-appropriate benchmark |
| SIP discipline | 10 | Consistent monthly additions vs sporadic lumpsum |
| Equity allocation | 10 | Age-appropriate equity ratio |
Benchmark by age:
- Under 35: 12% CAGR benchmark
- 35–45: 10.5%
- 45–55: 9%
- 55+: 7.5%
Your portfolio's blended expected return (from user_assets.expected_roi, weighted by value) is compared against this benchmark. A 12% portfolio at age 28 scores full marks. A 6% FD-heavy portfolio at age 28 loses significant points.
Equity allocation by age:
max_equity = 100 - age is a rough rule. Scoring uses a softer version with a ±10% band.
Resilience (20 pts)
| Sub-factor | Max pts | Threshold |
|---|---|---|
| Emergency fund | 10 | ≥ 3× monthly expenses = full; ≥ 1× = partial |
| Debt load | 5 | EMIs < 30% of income = full; >50% = 0 |
| Debt-to-income | 5 | Total liabilities < 3× annual income = full |
Emergency fund is defined as liquid assets (savings accounts, liquid mutual funds, short-term FDs) relative to your monthly expenses (from user_preferences.annual_expenses ÷ 12).
Debt load uses the EMI-to-income ratio from your cashflow entries.
Score stability
The score is re-computed every time you open the FI Intelligence page. Historical snapshots are saved to user_freedom_scores so you can track trend over time. The trend_7d column shows the 7-day delta — useful for seeing whether a recent investment or debt payoff moved the needle.