Retirement Calculator
Calculate your inflation-adjusted retirement corpus using the 25x annual expenses rule. See your monthly SIP target.
Retirement Inputs
Retirement Plan
30 years to retirement · Using 25x annual expenses rule
Future Monthly Expenses
₹2,87,175
Inflation-adjusted
Corpus Needed
₹8,61,52,368
Existing Corpus (Future Value)
₹1,49,79,961
Monthly SIP Needed
₹20,163
Gap: ₹7,11,72,407
About Retirement Calculator
A retirement calculator estimates how large a corpus you may need when expenses keep rising with inflation, and what monthly SIP (plus existing savings) might close the gap under your return assumptions. It is a planning frame — not a pension guarantee.
What is a retirement calculator?
It translates today’s lifestyle cost into a future monthly need at retirement age, then into a corpus target, then into a SIP that could close the gap after existing investments grow. Indian salaried households use it to size NPS/PPF/mutual-fund SIPs long before they stop drawing a salary.
How this calculator works
Enter current age, retirement age, today’s monthly expenses, inflation %, expected portfolio return %, and existing corpus. The tool inflates expenses to retirement, multiplies by 12 × 25 for a corpus target (a 25× annual-expense style rule of thumb), grows your existing corpus at the assumed return, and backs out the monthly SIP needed for the remaining gap.
Formula / methodology
Years to retirement = retirement age − current age. Future monthly expenses = today’s expenses × (1 + inflation)^years. Corpus needed = future monthly × 12 × 25. Existing corpus future = existing × (1 + return)^years. Gap = max(0, corpus needed − existing future). SIP uses the standard future-value annuity identity so contributions compound monthly at return÷12.
Worked example
Age 35, retire at 60, expenses ₹50,000/month, inflation 6%, expected return 12%, existing corpus ₹10 lakh. Future monthly expenses are about ₹2.15 lakh. Corpus target is roughly ₹6.44 crore. Existing money grows to about ₹1.70 crore, leaving a gap near ₹4.74 crore — requiring about ₹24,970/month SIP in this illustration. Stress lower returns and higher healthcare inflation before you treat any one number as final.
Advantages
Forces an explicit inflation assumption instead of underestimating future costs. Separates “what I have” from “what I still need to save.” Pairs cleanly with NPS, PPF and SIP tools for contribution design.
Assumptions and limitations
The 25× factor is a planning heuristic (related to ~4% withdrawal ideas), not a guarantee — longevity, medical costs and sequence-of-returns risk near retirement can demand a larger buffer. Markets do not deliver a smooth return path. Revisit yearly; this is not personalised advice.
Related learning guides
Frequently Asked Questions
- How is retirement corpus estimated?
- It inflates today’s expenses to retirement age, then multiplies by a years-of-expense factor (commonly ~25x annual expenses) as a planning rule of thumb.
- What return rate should I use before retirement?
- Equity-heavy portfolios often assume 10–12%; conservative mixes use less. Be realistic about sequence-of-returns risk near retirement.
- Does this include NPS or EPF?
- Existing corpus can represent EPF, NPS, PPF, and investments combined. Use dedicated NPS/PPF tools for scheme-specific projections.
- Why does inflation matter so much?
- Even modest inflation compounds over decades and can double required expenses. Underestimating inflation understates corpus need.
- Is the 25x rule enough?
- It is a starting point (related to a ~4% withdrawal idea). Longevity, healthcare, and pensions may require a larger buffer.