Retirement Calculator
Calculate the corpus you need for retirement, accounting for inflation, life expectancy, and post-retirement returns. Find your monthly SIP requirement to retire on your own terms.
PF, NPS, current savings, etc.
Corpus Required
₹5.74 Cr
Monthly Expense at Retirement
₹2.87 L
Monthly SIP Required
₹16,253
Corpus Accumulated
₹5.74 Cr
Shortfall
₹5.74 Cr
Needs to be funded
Years to Retire
30 years
Retirement duration: 20 yrs
Results shown are estimates based on assumed annual returns and are for illustrative purposes only. Actual returns will vary.
What is retirement planning?
Retirement planning is the process of working out how much corpus you need by the time you stop working, and the monthly SIP needed today to reach that corpus. The calculator accounts for inflation (your future expenses are higher), life expectancy (the corpus must last decades) and the real return (your return after inflation). A solid retirement plan typically includes three numbers: the monthly expenses you want at retirement (in today's rupees), the target corpus that supports those expenses through retirement, and the monthly SIP you need to start today to build that corpus. This calculator computes all three.
How to use the Retirement Calculator
- Enter your current age and retirement age. Most plan to retire between 55 and 65.
- Enter your monthly expenses today. What it takes to live your current lifestyle.
- Set the expected inflation rate. 6% is a reasonable long-term Indian average.
- Set the pre and post-retirement returns. Typically 12% pre, 8% post (more conservative after retirement).
- Review the corpus needed and monthly SIP. See exactly how much corpus you need and the SIP to get there.
Formula and method
Inflate today's expense to the retirement date. Find the corpus that can fund expenses through retirement, using the real (after-inflation) return. Then back-solve for the monthly SIP needed to build that corpus.
Why retirement planning early matters
- Time is the cheapest asset. A 25-year-old needs roughly 1/4 the monthly SIP of a 45-year-old to reach the same corpus.
- Inflation eats today's number. ₹50,000/month today is roughly ₹2.5 lakh/month in 30 years.
- The corpus must outlive you. Plan for at least 25 years post-retirement.
- Pension is rarely enough. Even with EPF and NPS, most households need a separate retirement SIP.
- Healthcare costs explode after 60. Healthcare inflation often runs 1.5-2× general inflation.
Sample SIP needed for ₹50,000/month expenses at age 60
| Current age | Monthly SIP needed | Corpus at retirement |
|---|---|---|
| 25 | ≈ ₹8,500 | ≈ ₹6.8 crore |
| 30 | ≈ ₹14,000 | ≈ ₹6.0 crore |
| 35 | ≈ ₹24,000 | ≈ ₹5.3 crore |
| 40 | ≈ ₹42,000 | ≈ ₹4.7 crore |
Illustrative: 6% inflation, 12% pre-retirement return, 8% post-retirement, 25 years post-retirement, ₹50,000/month expenses in today's rupees. Use the calculator above for your specific numbers.