Retirement Calculator
Two questions answered at once: how large a retirement corpus you need for the life you want, and how much you have to invest every month from today to build it.
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How to use this calculator
- Enter your age now
- Enter retirement age
- Enter plan until age — Plan generously — running out of money is worse than leaving some behind.
- Enter monthly expenses today — What a month of your current lifestyle costs, in today's money.
- Enter expected inflation
- Enter return before retirement — While you are still investing and can take more risk.
- Enter return after retirement — Usually lower — retirement money is invested more conservatively.
- Enter savings already set aside — Existing retirement investments — EPF, PPF, NPS, mutual funds. (optional — leave it as it is if it does not apply)
- Read the result — it updates as you type.
The formula used
Corpus = M × (1 + inflation)y × [ 1 − (1 + rreal)−n ] ÷ rreal
- M
- Monthly expenses in today's money
- y
- Years until you retire
- n
- Months of retirement to fund
- r_real
- Monthly real return = (1 + return) ÷ (1 + inflation) − 1
The calculation runs in three steps:
- Inflate today's expenses to what they will cost on your first day of retirement.
- Work out the corpus that can pay that amount every month, rising with inflation, until your planning age. This uses the present value of an inflation-adjusted annuity — the "real rate" method, which is why the corpus is smaller than simply multiplying expenses by months.
- Subtract what you already have (grown at your pre-retirement return) and convert the remaining gap into a monthly SIP using the standard SIP formula, rearranged.
Worked example
You are 30, retiring at 60, planning to 85, spending ₹50,000 a month today, with 6% inflation, 12% before retirement and 8% after.
- Years to retirement30
- Expenses at 60₹50,000 × 1.06³⁰ = ₹2,87,175 a month
- Real return in retirement(1.08 ÷ 1.06) − 1 = 1.887% a year
- Corpus needed at 60 ≈ ₹6.88 crore (25 years of inflation-linked withdrawals)
- Existing savings: ₹0
- Monthly SIP = corpus × i ÷ [((1+i)³⁶⁰ − 1) × (1+i)], with i = 1% ≈ ₹19,482
₹6.88 crore sounds alarming until you see that about ₹19,500 a month for 30 years gets there — and that most of the corpus comes from growth, not from your contributions.
Why retirement numbers look so frightening (and why they are manageable)
The headline corpus is always a shocking number, for one reason: inflation over three decades. At 6%, prices roughly double every twelve years. A ₹50,000 monthly lifestyle costs about ₹2.87 lakh a month by the time you are 60. That is not a forecast of luxury — it is the same life, priced later.
The corpus does not sit idle
A common mistake is multiplying future expenses by the number of retirement months. That overstates the need badly, because the corpus keeps earning while you draw from it. This calculator uses the real return — your post-retirement return minus inflation — which is the correct way to value a rising stream of withdrawals.
Starting early is worth more than earning more
Begin at 30 for a 60-year retirement and this plan needs about ₹19,500 a month. Begin the identical plan at 40 and it needs about ₹38,400 — nearly double, for a corpus that is actually smaller, because you lose the decade in which compounding does its heaviest work. If you are starting late, the honest levers are: retire later, spend less, or save considerably more.
Choosing sensible assumptions
- Inflation 6% — close to India's long-run experience. Personal inflation for healthcare and education runs higher.
- 12% before retirement — an equity-heavy portfolio over decades. Use 10% if you prefer caution.
- 8% after retirement — a mix of debt and some equity. Going below inflation makes the required corpus balloon.
- Plan to 85 or 90 — life expectancy keeps rising, and the cost of underestimating it is severe.
What is not included
Medical emergencies, a home purchase, children's education, EPF and NPS contributions you already make, and any pension income. Count existing retirement savings in the "savings already set aside" box, and treat the result as a target rather than a promise.
Tips and common mistakes
Getting more out of it
- Include your EPF, PPF and NPS balances in "savings already set aside" — they reduce the monthly figure substantially.
- If the monthly amount is out of reach, try retiring two years later before giving up on the plan.
Mistakes to avoid
- Assuming a post-retirement return above inflation without justification. That single assumption drives everything.
- Planning only to age 75. Underestimating lifespan is the most expensive error in this calculation.
- Leaving out healthcare, which typically rises faster than general inflation.
Frequently asked questions
How much do I need to retire in India?
There is no single figure — it depends entirely on your monthly spending, when you retire and how long you plan for. Enter your own numbers above. As a rough sanity check, many people need 25–30 times their annual expenses at retirement, adjusted for inflation.
Why is the corpus so much larger than my current expenses suggest?
Inflation. At 6%, today's ₹50,000 monthly lifestyle costs nearly ₹2.9 lakh a month in 30 years. The corpus has to fund the future price, not today's.
Should I include my EPF and PPF?
Yes — put their current total in "savings already set aside". The calculator grows that amount at your pre-retirement return, so the SIP you need is reduced accordingly.
What return should I assume after retiring?
Lower than before, because the money is usually moved to safer assets. 7–8% is a common assumption. Assuming a post-retirement return below inflation makes the required corpus very large — which is the calculator being honest, not broken.
What if I cannot invest the amount it shows?
Invest what you can and revisit yearly. A step-up SIP that rises with your salary closes the gap surprisingly fast — try the Step-Up SIP Calculator. Retiring two or three years later also reduces the requirement sharply.
Does this account for a pension or rental income?
Not directly. If you expect regular income in retirement, subtract it from your monthly expenses before entering them, so the corpus only covers the shortfall.
Related calculators
Size of the corpus required for a target yearly spend.
Retirement Monthly Retirement Income CalculatorMonthly income a corpus can safely support.
Retirement Step-Up SIP CalculatorSIP where you increase the monthly amount every year.
Investment SIP CalculatorSee what a monthly SIP could grow into over time.
Investment Inflation CalculatorWhat today’s money will be worth after inflation.
Tax & Inflation SWP CalculatorHow long a corpus lasts with a systematic withdrawal plan.
Mutual Funds