What is a Retirement Calculator?
Retirement planning means building a corpus large enough to pay for your living expenses after you stop working, for as long as you may live.
This calculator estimates the corpus you may need at retirement, how much your current savings could grow to, and the monthly SIP needed to fill the gap.
How it helps you
- See what today's expenses may become by the time you retire.
- Estimate a corpus that lasts until the age you plan for.
- Find the monthly SIP needed to close the gap.
- Test different retirement ages and returns.
How it is calculated
Corpus = E × [1 − ((1 + g) ÷ (1 + r))ᴺ] ÷ (r − g) × (1 + r)
- E
- Yearly expenses in the first year of retirement (today's expenses grown by inflation)
- g
- Inflation rate during retirement ÷ 100
- r
- Return on the corpus after retirement ÷ 100
- N
- Years in retirement
Your existing savings grow at the pre-retirement return; the SIP covers the remaining gap.
You are 30, plan to retire at 60 and plan till 85. Monthly expenses are ₹50,000, inflation 6%, return 12% before and 8% after retirement, and you have ₹5,00,000 saved.
- 1Expenses at 60 ≈ ₹2,87,175 a month (₹50,000 × 1.06³⁰)
- 2Corpus needed at 60 to fund 25 years ≈ ₹6,94,68,933
- 3Your ₹5,00,000 may grow to ≈ ₹1,49,79,961 by 60
Monthly SIP needed for the gap ≈ ₹15,436.
How to use the Retirement Calculator
- 1Enter your current age, retirement age and the age to plan till.
- 2Enter your current monthly expenses and existing retirement savings.
- 3Set inflation and expected returns before and after retirement.
- 4Read the corpus needed and the monthly SIP required.
Frequently asked questions
Why is the corpus so large?
Inflation compounds over decades. Expenses of ₹50,000 today can become several times larger in 30 years, and the corpus must fund many years of rising expenses.
Why are there two return rates?
Before retirement you can usually take more risk for growth. After retirement most people shift to lower-risk options, which typically means a lower expected return.
What about EPF, PPF or NPS?
Add their current balances to 'retirement savings so far'. Their future contributions reduce the SIP you need.
How long should I plan for?
Plan beyond average life expectancy. Running out of money late in life is a bigger risk than having some left over.
Are the results guaranteed?
The result is an estimate based on a constant rate. Actual market returns change every year and are not guaranteed.