This retirement calculator estimates the corpus you will need to cover your expenses in retirement, allowing for inflation, and the monthly SIP required to build it. Enter today’s monthly expenses and your assumptions.
How the retirement calculator works
- Your current monthly expenses are increased by inflation every year until retirement, to find what the same lifestyle will cost then.
- The corpus needed is the amount that can pay those expenses every year for the length of retirement you choose, with the expenses continuing to rise with inflation while the remaining corpus earns your post-retirement return.
- Your existing savings are grown at the pre-retirement return, and the calculator works out the monthly SIP needed to cover any shortfall.
The figures can look large. For example, ₹50,000 a month today becomes about ₹2.9 lakh a month after 30 years at 6% inflation, which is why starting early, and stepping up your investments as your income grows, matters so much.
Making the estimate more useful
- Leave out expenses that will end before retirement, such as children’s education, and add new ones, such as higher medical costs.
- Plan for a longer retirement than you expect; 25 to 30 years is a sensible starting point.
- Count EPF, PPF and NPS balances as savings you already have.
- Review the plan every few years as your income, expenses and assumptions change.
Read more: Step-up SIPs and your retirement number, NPS vs PPF vs EPF and the SWP Calculator for planning withdrawals.
Mutual fund investments are subject to market risks. Please read all scheme related documents carefully before investing. This calculator is for educational purposes only and does not constitute investment advice.