About the Retirement Calculator
How much do you need to retire, and how much should you invest each month to get there? This retirement calculator inflates today's monthly expenses to your retirement age, works out the corpus needed to cover them until the age you plan for, and shows the monthly SIP required.
How to use this calculator
- Enter your current age, planned retirement age and the age you want to plan up to.
- Enter your current monthly expenses and expected inflation.
- Set expected returns before and after retirement.
- Enter savings already set aside for retirement.
Formula
Expenses are inflated to your retirement age. The corpus is the present value, at retirement, of those expenses rising with inflation each year, discounted at the post-retirement return. The SIP needed is the shortfall after your existing savings grow, divided by the SIP growth factor.
Example
A 35-year-old spending ₹60,000 a month, retiring at 60 and planning to 85 with 6% inflation, would need about ₹2,57,512 a month at 60 and a corpus of about ₹6.23 crore. With ₹10 lakh saved and assumed returns of 12% before and 8% after retirement, the SIP needed is about ₹23,868 a month.
Frequently asked questions
Why is the corpus so large?
Inflation raises your expenses every year, and the corpus has to pay for many years of rising costs. Starting early makes the required SIP much smaller.
What age should I plan up to?
Many planners use 85 to 90 so there is a buffer for a long life.
Does this include EPF, PPF or NPS?
Add any money already saved for retirement in the savings field. Future contributions to those schemes reduce the SIP you need.
These results are estimates for illustration and education only, not investment advice.