Financial Calculators
Retirement Calculator
How much do you need to retire, and what monthly SIP gets you there? Honest numbers, inflation included.
Invest every month
₹27,123
to build your retirement corpus in 25 years
- Monthly expenses at retirement
- ₹2,14,594
- Corpus needed at retirement
- ₹5,14,69,136
Assumes expenses rise with inflation, the corpus earns the post-retirement return, and withdrawals rise with inflation through retirement (real-rate annuity method). Estimates for illustration only; mutual fund investments are subject to market risks.
Retirement is a number, not an age
The real question of retirement is not when you stop working but whether your money can pay your expenses for twenty-five years or more without a salary. This calculator answers it in three steps: it inflates your current monthly expenses to your retirement year, computes the corpus that can pay those rising expenses through retirement, and converts that corpus into the monthly SIP required today.
The method uses a real-rate annuity: your corpus earns the post-retirement return while withdrawals rise with inflation, which is how retirement actually behaves. Simple calculators that ignore inflation during retirement understate the corpus badly.
How the calculation works
Expense at retirement = today's expense x (1 + inflation)^years\nCorpus = inflation-adjusted annuity of those expenses\n at the post-retirement return, for the retirement years\nRequired SIP = Corpus / SIP annuity factor at the pre-retirement returnWorked example: monthly expenses of Rs 50,000 today, retiring in 25 years, 25 years in retirement, 6% inflation, 12% return before and 8% after retirement. Expenses at retirement become about Rs 2,14,594 per month, the corpus needed is about Rs 5.15 crore, and the SIP required from today is about Rs 27,123 per month.
Frequently asked questions
Why is the corpus so large?
Because inflation works against you twice: it raises your expenses until retirement, then keeps raising them through twenty-five retirement years. A corpus that ignores this runs out midway. The good news is that time and compounding make the required SIP surprisingly manageable if you start early.
What returns should I assume?
Common planning assumptions are 10 to 12% before retirement (equity-heavy) and 7 to 9% after (conservative mix). Assume conservatively; a plan that works on cautious numbers is a plan that survives reality.
Does this account for pension?
Enter only the expense gap your investments must cover. If pension covers Rs 40,000 of a Rs 90,000 monthly need, plan for Rs 50,000 here.
Is this projection guaranteed?
No. It is an illustration built on your assumptions. Actual returns and inflation vary. Mutual fund investments are subject to market risks; read all scheme related documents carefully.
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