Methodology
How we compute the Freedom Score.
Three components. Seven tiers. Zero hidden constants. The formula is deterministic TypeScript — you can audit every line.
The score range: −100 to +100
−100 represents complete financial distress — total debt exceeds annual income by a wide margin, no liquid assets. +100 represents a corpus that can sustain your desired lifestyle indefinitely, adjusted for inflation, with significant resilience margin.
Most users land between −20 and +60. The tails are real but rare.
Three components
Component 1: FI Progress
max 40 pointsMeasures how much of your financial independence number (FI corpus) you have accumulated. FI corpus = annual expenses × withdrawal-rate multiplier (28.5× at 3.5% SWR). FI Progress = (current investable assets / FI corpus) × 40. Capped at 40.
Example: If your FI corpus is ₹2.5 Cr and you have ₹1 Cr invested: (1/2.5) × 40 = 16 points.
Component 2: Compounding Quality
max 40 pointsMeasures how well your portfolio is compounding relative to inflation. Formula inputs: portfolio-weighted real return (expected return - inflation), SIP consistency (months without gap), and asset mix score (diversification across equity/debt/gold). Output: a 0–40 score.
Example: 12% gross return, 5% inflation = 7% real. Well-diversified SIP for 5 years = ~28 points.
Component 3: Resilience
max 20 pointsMeasures ability to absorb shocks. Sub-components: emergency fund adequacy (6 months expenses = max), insurance coverage adequacy, and debt-to-income ratio. Each sub-component contributes proportionally to 20 points.
Example: 4 months emergency fund + adequate term insurance + low EMI/income ratio = ~15 points.
The seven tiers
High-interest debt dominates. Immediate intervention needed.
Getting by, but no compounding momentum yet.
Emergency fund exists. SIPs started. Early compounding.
On track. Corpus growing meaningfully relative to goals.
FI achievable within 10 years at current trajectory.
Financial independence within 3–5 years.
FI achieved or overachieved. Generational wealth trajectory.
SFS vs AFS — what verification means
SFS (Self-reported Freedom Score) — computed from user-entered data. The math is identical. No verification of the underlying numbers.
AFS (Audited Freedom Score) — same computation, but a SEBI-registered advisor has onboarded the client, reviewed the underlying data inside the Freedomwise platform, and submitted a formal attestation. The attesting advisor's name and registration number appear on the badge.
Get your score audited by an advisor →What we never use
- —Market timing signals or short-term predictions
- —Peer pressure framing ('your friends have higher scores')
- —Commission-generating product recommendations
- —Return assumptions beyond documented historic ranges
- —Hardcoded constants — all parameters come from user data
Audit it yourself
The computation logic lives in src/utils/freedomScore.ts. All financial guardrails are in supabase/functions/_shared/financial_guardrails.ts. The test suite validates every tier boundary.