Retirement Planning Calculator
Estimate the corpus you may need at retirement and the monthly investment to build it—adjusted for inflation.
Stress-test retirement planning in India by inflating today's expenses, choosing a drawdown horizon, and setting expected returns—outputs include a target corpus and the monthly SIP-style savings needed so you can discuss assumptions with a SEBI-registered advisor or your own spreadsheet.
Your profile
Uses annuity-style corpus from expected return and drawdown years.
Working horizon: 30 years
Projection
Illustrative only—not a substitute for licensed financial advice.
Monthly cash flows compared (same scale)
- Projected monthly spend after retirement₹2,87,175
- Monthly save / invest required until retirement₹13,838
Based on debounced inputs: retirement in ~360 months from current age.
Planning logic & formulas
Retirement tools combine compound growth (to build corpus) with annuity-style withdrawals (to spend in retirement). Our implementation uses standard time-value-of-money ideas.
Monthly expense at retirement (inflation)
Expense_ret = Expense_now × (1 + g)^(R − C) g = annual inflation as decimal (e.g. 6% → 0.06) R = retirement age, C = current age
- Expense_now
- What you spend per month today.
- g
- Assumed yearly rise in living costs (inflation).
This projects today’s lifestyle cost into the first year of retirement. It does not model changing lifestyle or medical shocks—you can stress-test by raising inflation or expenses.
Corpus from annuity (simplified drawdown)
Corpus ≈ Annual_expense_ret × (1 − (1 + r)^−T) / r r = expected annual return (decimal), T = years in retirement
- T
- How many years you want the portfolio to support withdrawals.
This estimates a lump sum that can fund fixed real/nominal withdrawals for T years if returns match assumptions—a textbook annuity present value. If r is very small, the tool falls back to a linear multiple of annual expense.
Monthly investment (accumulation phase)
FV = PMT × [((1 + r_m)^n − 1) / r_m] → solve PMT for target FV r_m = monthly return, n = months until retirement
- PMT
- Monthly amount you need to invest (ordinary annuity).
We solve for the payment that reaches your target corpus by retirement, using the same monthly compounding convention as many mutual fund SIP calculators.
Illustrative “income stack”
Many retirees want their corpus to replace a fraction of pre-retirement income. The bar is conceptual—your numbers appear in the calculator cards above.
- Essential living — 55.0%
- Healthcare buffer — 25.0%
- Discretionary — 20.0%
Adjust current expenses, inflation, and return in the tool—this chart is only a visual pattern.
Key terms
Words commonly used in retirement planning in India.
- Corpus
- The total pool of investments you aim to have at retirement to fund withdrawals.
- Inflation
- Rise in prices over time. Planning ignores it at your peril—₹1 today buys less in 20 years.
- Expected return
- Assumed average growth rate on investments before retirement. Actual markets vary year to year.
- Drawdown
- Spending from your portfolio after you stop earning a regular salary.
- NPS / EPF / PPF
- Tax-advantaged wrappers in India. This calculator does not auto-include them—you can net them off mentally from the required corpus.
Benefits of this calculator
- Translate “I spend ₹X today” into a future expense figure you can reason about.
- See both a target corpus and a monthly savings bridge to reach it.
- Experiment with inflation and return assumptions to stress-test your plan.
- Private, instant, and free—useful before speaking to a financial planner.
FAQ
Why inflate my current expenses?▼
Retirement spending is modeled in future rupees. If you ignore inflation, you may underestimate how much income you will need 20–30 years from now.
How is “required corpus” calculated here?▼
We take your projected annual expense at retirement and treat it as an annuity drawn down at your expected return over the years-in-retirement you specify. This is a simplified planning model, not a product recommendation.
Is the monthly investment a SIP or lump sum?▼
The tool shows a constant monthly amount invested until retirement that would grow to the target corpus at your stated expected return—similar in spirit to a systematic investment plan (SIP), but without modeling market volatility.
Should I use pre-tax or post-tax returns?▼
For simplicity many people use nominal expected returns. A more advanced approach uses real (inflation-adjusted) returns. When in doubt, use conservative assumptions and review with a SEBI-registered advisor.