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Retirement calculator
Find the corpus that can fund your lifestyle after you stop working, and the monthly investment needed to reach it.
How the estimate is built
- Inflate your expenses from today to your retirement date.
- Size the corpus so that it can pay those expenses, rising with inflation every year, until the age you plan for. This uses the real return in retirement: (1 + post-retirement return) ÷ (1 + inflation) − 1.
- Solve for the SIP that grows to that corpus at your pre-retirement return.
A 30-year-old spending ₹50,000 a month, retiring at 60 and planning to 85, with 6% inflation, needs about ₹7.7 crore. At 12% a year before retirement, that takes a SIP of roughly ₹21,856 a month.
Making the number smaller
The corpus looks large because thirty years of inflation is large. The same thirty years is what makes it reachable. In the example above, starting at 40 instead of 30 roughly doubles the monthly SIP needed, to about ₹43,000. Count what you already have: EPF, NPS and PPF balances all reduce the gap. Step up contributions with every raise, and keep health insurance in place so a hospital bill does not come out of the corpus.
Questions
How much of my current expenses will I need?
Many plans use 70% to 80% of pre-retirement spending, since work costs and EMIs fall away while healthcare rises. Enter the figure that matches the life you want.
What return should I assume after retirement?
Lower than before, because more of the money sits in safer assets. One to two percentage points above inflation is a prudent assumption.