worldofcalcsRetirement Calculator
About Retirement Calculator
Plan your retirement by calculating the corpus needed to maintain your current lifestyle, adjusting for inflation, and compare it with your projected savings.
Features
- Calculates required retirement corpus based on expenses.
- Adjusts for inflation and life expectancy.
- Highlights wealth gap or surplus.
How to Use
- Enter current age, retirement age, and life expectancy.
- Input current monthly expenses and expected inflation.
- Add current savings and monthly investment details.
- View your required corpus and wealth gap.
Common Uses
- Retirement planning.
- Financial freedom analysis.
- Long-term savings goal setting.
What does a retirement calculator tell you?
A retirement calculator estimates two numbers: the corpus (total savings) you'll need to cover your expenses after you stop working, and the corpus your current savings and monthly investments are on track to build. The gap between them tells you whether to save more, invest differently or retire later. Because retirement is usually decades away, inflation matters most: ₹30,000 a month of expenses today becomes about ₹1.72 lakh a month in 30 years at 6% inflation.
How the corpus is estimated
y is the number of years until you retire. The calculator inflates today's monthly expenses to your retirement date, then multiplies by the number of years you expect to live after retiring. This assumes the corpus earns only enough after retirement to keep pace with inflation (a 0% real return), which is deliberately conservative. Your projected corpus is your current savings plus your monthly investments, both compounded at your expected return until retirement.
Retirement planning in India
- Count all your retirement savings: EPF, PPF, NPS, mutual funds and any pension, not just one account.
- Plan for a long retirement. Many planners use age 85 or 90, because running out of money is a bigger risk than leaving some behind.
- Healthcare costs usually rise faster than general inflation. Buy adequate health insurance well before you retire.
- Shift gradually from equity to safer investments in the 5–10 years before retiring, so a market fall just before retirement hurts less.
- A common rule of thumb is to withdraw no more than 3%–4% of the corpus in the first year of retirement; India's higher inflation argues for the lower end.
- Starting early matters most: waiting from age 25 to 35 raises the monthly investment needed by about 60% (see the table below).
Worked example: age 30, retiring at 60
- Age 30, retiring at 60, planning to age 80. Monthly expenses today: ₹30,000. Inflation: 6%
- Monthly expenses at 60: ₹30,000 × (1.06)³⁰ = ₹1,72,305
- Corpus needed for 20 years: ₹1,72,305 × 12 × 20 = ₹4,13,53,136
- Current savings of ₹5,00,000 at 10% grow to ₹99,18,700 by age 60
- A ₹10,000 monthly investment at 10% adds ₹2,27,93,253
- Projected corpus: ₹3,27,11,953, a shortfall of ₹86,41,184. Closing it means investing more, retiring later or planning for lower expenses
Monthly investment needed to retire at 60
For someone spending ₹50,000 a month today, planning for 25 years of retirement (to age 85), with 6% inflation and a 10% return before retirement, starting from zero savings.
| Starting age | Monthly expenses at 60 | Corpus needed | Monthly investment needed |
|---|---|---|---|
| 25 | ₹3,84,304 | ₹11,52,91,302 | ₹30,116 |
| 30 | ₹2,87,175 | ₹8,61,52,368 | ₹37,797 |
| 35 | ₹2,14,594 | ₹6,43,78,061 | ₹48,119 |
| 40 | ₹1,60,357 | ₹4,81,07,032 | ₹62,828 |
| 45 | ₹1,19,828 | ₹3,59,48,373 | ₹86,016 |
Assumes a 0% real return after retirement. Existing savings reduce the monthly amount needed.