Your Current Age (Years)
1860
Retirement Age (Years)
4575
Life Expectancy (Years)
70100
Current Monthly Household Expense (Rs)
10K10 Lakhs
Expected Inflation (% per annum)
212
Expected Return Before Retirement (% p.a.)
420
Expected Return After Retirement (% p.a.)
215
Amount Invested Total Growth
Monthly Expense at Retirement (inflation-adjusted)
Rs. 0
Retirement Corpus Required
Rs. 0
Required Monthly SIP to Reach This Corpus
Rs. 0
What is a Retirement Planning Calculator?
This calculator estimates how large a retirement corpus you'll need, and how much you should invest monthly starting today, to maintain your current lifestyle after you retire — accounting for inflation eroding your money's value over time, and different expected returns before and after retirement.
Most people underestimate retirement needs because they think in today's rupee value. This calculator adjusts your current monthly expenses for inflation all the way to your retirement date, and then further accounts for inflation during your retirement years, giving a realistic corpus target instead of a guess.
How the Numbers Are Calculated
Step 1 — Future Monthly Expense = Current Expense × (1 + inflation)years to retirement
Step 2 — Real Rate of Return (post-retirement) = [ (1 + post-retirement return) / (1 + inflation) ] − 1
Step 3 — Retirement Corpus = Annual Expense at Retirement × [ (1 − (1 + real rate)−years in retirement) / real rate ] × (1 + real rate)
Step 4 — Required Monthly SIP = Retirement Corpus ÷ [ ( (1 + r)n − 1 ) / r × (1 + r) ]
Step 2 — Real Rate of Return (post-retirement) = [ (1 + post-retirement return) / (1 + inflation) ] − 1
Step 3 — Retirement Corpus = Annual Expense at Retirement × [ (1 − (1 + real rate)−years in retirement) / real rate ] × (1 + real rate)
Step 4 — Required Monthly SIP = Retirement Corpus ÷ [ ( (1 + r)n − 1 ) / r × (1 + r) ]
Years to retirement: Retirement age minus current age
Years in retirement: Life expectancy minus retirement age
Real rate of return: Your effective purchasing-power growth rate after subtracting inflation's effect from your post-retirement returns
r, n: The effective monthly return and number of months used to calculate your required monthly SIP, same as the standard SIP formula
Note: This calculator uses two different return assumptions on purpose: a (usually higher) growth-oriented return while you're still accumulating wealth before retirement, and a (usually lower, more conservative) return for the corpus once you're withdrawing from it after retirement.
Example: A 30-year-old retiring at 60, with a life expectancy of 85, current monthly expenses of Rs. 50,000, 6% inflation, 12% pre-retirement returns, and 7% post-retirement returns would need a retirement corpus of roughly Rs. 7.7 crore, requiring a monthly SIP of approximately Rs. 21,856 starting today.
Frequently Asked Questions
What is a Retirement calculator?
It estimates the corpus you will need at retirement to maintain your desired monthly expenses, and how much you need to invest regularly to reach that corpus.
How is the required retirement corpus calculated?
It typically projects your current monthly expenses forward using an assumed inflation rate to estimate future costs, then calculates the total corpus needed to sustain those expenses through your expected retirement years.
Why does inflation matter so much in retirement planning?
Inflation steadily increases the cost of living, so an expense that costs a certain amount today will cost significantly more by the time you retire, especially over long time horizons.
Does this calculator account for returns after retirement?
Many retirement calculators assume the corpus continues to earn a modest return during retirement while withdrawals are made; check this calculator's specific assumptions for the post-retirement return rate.
Is the retirement calculator result guaranteed?
No, it is based on assumed rates of return and inflation that may not match actual future conditions.