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Retirement Calculator

Retirement

Retirement planning works backwards: estimate the corpus you will need using the 4% rule, then find the monthly investment that gets you there before inflation catches up.

In short: The Retirement Calculator is a free online tool that lets you find the corpus and monthly SIP you need to retire comfortably against inflation — instantly, with charts, a worked example and the exact formula.

Your inputs

yrs
1859
yrs
4075
/month
₹50,000
₹5K₹50L

What you spend each month in today’s money.

% p.a.
115
% p.a.
125

Expected return while you build the corpus.

Required corpus

₹8,61,52,368

Monthly SIP needed

₹24,406

To build the corpus in time

Future monthly expense

₹2,87,175

In 30 yrs after inflation

SIP corpus growth

How your monthly SIP compounds toward the retirement corpus.

Year-wise corpus build-up

Year-wise corpus build-up
YearInvestedCorpus
1₹2,92,876₹3,12,629
2₹5,85,753₹6,64,907
3₹8,78,629₹10,61,864
4₹11,71,506₹15,09,164
5₹14,64,382₹20,13,192
6₹17,57,258₹25,81,145
7₹20,50,135₹32,21,128
8₹23,43,011₹39,42,276
9₹26,35,888₹47,54,885
10₹29,28,764₹56,70,553

Assumes a level monthly SIP compounded monthly.

How the Retirement Calculator works

Formula

Corpus = (Monthlyₜₒdₐy × (1 + i)ⁿ × 12) × 25; SIP = Corpus ÷ FV-factor
Monthlyₜₒdₐy
Your current monthly expense
i
Annual inflation rate
n
Years until retirement
× 25
The 4% safe-withdrawal rule (annual expense × 25)

Step-by-step calculation

Worked with the default values.

  1. 1

    Years to retirement

    60 − 30

    = 30 yrs

  2. 2

    Future monthly expense

    ₹50,000 × (1 + 6%)^30

    = ₹2,87,175

  3. 3

    Required corpus (4% rule)

    ₹34,46,095 × 25

    = ₹8,61,52,368

  4. 4

    Monthly SIP needed

    Corpus ÷ SIP future-value factor

    = ₹24,406

How it works

  • Your current monthly expense is grown by inflation to what it will cost at retirement.
  • The 4% rule sizes the corpus so that withdrawing 4% a year (annual expense × 25) can last through retirement.
  • The required monthly SIP is the amount that, compounded at your pre-retirement return, reaches that corpus in time.

Examples

₹50,000/month expense today, retiring in 30 years at 6% inflation and 12% returns

Needs a corpus of roughly ₹8.6 crore, built with a monthly SIP of around ₹24,000.

Understanding the Retirement Calculator

Retirement planning starts with a number

Most people save for retirement without knowing the finish line. Retirement planning flips that: you first work out how much corpus you will need, then find the monthly investment that gets you there. The logic runs backwards from your own expenses, which makes the target personal rather than a one-size-fits-all figure.

The challenge is inflation. A lifestyle that costs ₹50,000 a month today will cost far more in thirty years. So the first step is to inflate today’s expense to what it will cost on the day you retire, using a realistic long-term rate of around 6–7%.

Sizing the corpus with the 4% rule

Once you know your future annual expense, the 4% rule sizes the corpus. It says you can safely withdraw 4% of your savings in the first year and adjust for inflation thereafter, with a good chance the money lasts 30 years or more. In practice that means a corpus of about 25× your annual expense.

  • ₹50,000/month today, inflated over 30 years at 6%, needs a corpus near ₹8.6 crore.
  • Reaching it might require a monthly SIP of roughly ₹24,000 at 12% pre-retirement returns.
  • A more cautious 3–3.5% withdrawal rate implies a larger 28–33× corpus.

Because the 4% rule was derived from US market history, India’s higher inflation makes it a starting point, not a guarantee. Many local planners lean conservative.

Turning the target into action

A corpus in crores sounds daunting until it becomes a monthly SIP. Two levers make it achievable: time and step-ups. Starting a decade earlier can roughly halve the SIP required, since compounding does most of the work in the early years. A step-up SIP that rises with your salary keeps the initial amount manageable.

  • Shift gradually from equity to debt in the final 5–7 years to protect against a late crash.
  • Budget a separate medical corpus and health cover, as medical inflation outpaces the general rate.
  • Reduce the SIP shown here by whatever EPF, NPS or pension will independently provide.

Planned this way, retirement stops being an abstract worry and becomes a specific, trackable goal you can adjust each year as your income and markets evolve.

Pros

  • Works backwards from your real expenses, giving a personalised rather than generic target.
  • Adjusts for inflation, so the corpus reflects what your lifestyle will actually cost.
  • Translates a large, intimidating corpus into a concrete monthly SIP you can act on.
  • The 4% rule offers a simple, research-backed framework for sizing the corpus.
  • Encourages starting early, when compounding does most of the heavy lifting.

Cons

  • The 4% rule is US-derived and may be optimistic for India’s higher inflation.
  • Assumes steady returns, whereas real markets are volatile and sequence risk matters.
  • Ignores pensions, EPF and NPS, so it can overstate the SIP you personally need.
  • A single inflation figure understates faster-rising medical and lifestyle costs.

Tips

  • 1Start as early as possible — a decade of extra compounding can halve the SIP you need.
  • 2Use a step-up SIP that rises with your salary to keep early contributions manageable.
  • 3Stress-test with a higher inflation rate and a lower 3–3.5% withdrawal rate for safety.
  • 4Shift gradually from equity to debt in the final 5–7 years to protect the corpus.
  • 5Budget a separate medical corpus and health cover on top of the lifestyle corpus.

Frequently asked questions

Everything you need to know about the Retirement Calculator.

What is the 4% rule?
The 4% rule suggests you can withdraw 4% of your retirement corpus in the first year and adjust for inflation thereafter, with a good chance the money lasts 30+ years. It implies a corpus of about 25× your annual expense.
Why adjust expenses for inflation?
A monthly budget that feels comfortable today will cost far more decades from now. Inflating today’s expense to your retirement date gives a realistic corpus target.
What return should I assume before retirement?
While you are accumulating, a diversified equity-heavy portfolio has historically returned around 11–13% over long periods. Use a conservative figure and revisit it periodically.
Should I increase my SIP over time?
Yes. A step-up SIP that rises with your income reduces the burden in the early years and helps you reach the corpus even if returns are lower than assumed. Even a 5–10% annual step-up dramatically cuts the starting SIP you need.
Does the 4% rule work in India?
The 4% rule was derived from US market history, and India’s higher inflation makes it a starting point rather than a guarantee. Many Indian planners prefer a more conservative 3–3.5% withdrawal rate, which implies a larger corpus of 28–33× annual expenses.
What inflation rate should I assume?
General inflation in India has averaged around 6% over long periods, but lifestyle and medical inflation often run higher. Using 6–7% for expenses gives a realistic target, and you should stress-test with a higher figure for healthcare costs.
How long should my retirement corpus last?
Plan for a retirement of 25–30 years or more, since life expectancy is rising. A corpus sized on the 4% rule is designed to survive roughly 30 years, but early retirement or a long life may require a larger buffer.
Should I move to safer investments near retirement?
Yes. As you approach retirement, gradually shift from equity toward debt and fixed income to protect the corpus from a market crash just before you need it. A glide path reduces sequence-of-returns risk in the crucial final years.
What about healthcare costs in retirement?
Medical inflation outpaces general inflation, so budget separately for it. Maintaining a comprehensive health-insurance policy and earmarking a dedicated medical corpus prevents large hospital bills from eroding your retirement savings.
Does this calculator account for a pension or EPF?
No. It sizes the total corpus and SIP purely from your expenses. If you expect EPF, NPS or a pension, you can reduce the SIP shown here by the corpus those sources will independently provide.

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