Retirement Calculator
Estimate the retirement corpus you need and the monthly SIP required to build it, accounting for inflation and returns.
What is the Retirement Calculator?
A retirement plan works out how much money you need on the day you retire to cover expenses until life expectancy, and how much to invest each month until then.
How does it work?
Your current monthly expense is inflated to your retirement age. The corpus is the present value of those expenses — rising with inflation each year — discounted at the post-retirement return. Existing savings are grown to retirement, and the remaining gap is funded by a monthly SIP.
Formula
Corpus = E × (1 − ((1+g)/(1+r))^N) ÷ (1 − (1+g)/(1+r))
E = annual expense at retirement, g = inflation, r = post-retirement return, N = retirement years
Example
A 30-year-old spending ₹50,000 a month, retiring at 60 with 6% inflation, needs about ₹2.87 lakh a month at retirement and a corpus of roughly ₹7.7 crore.
Frequently asked questions
Why is the corpus so large?
Inflation roughly doubles costs every 12 years at 6%, and the corpus must last for decades while expenses keep rising.
Should I include EPF and PPF?
Yes, include the current balance of retirement-dedicated savings in “Current retirement savings”.
Related tools
Enable JavaScript to use this calculator.