How to use the Retirement Calculator
- 1
Enter your current age, planned retirement age and the age you want to plan till.
- 2
Enter your household's monthly expenses today and an inflation rate.
- 3
Set an assumed return before retirement and a more cautious one after retirement.
- 4
Read the monthly expense at retirement, the corpus needed and the monthly SIP.
The formula
E = Expense × (1 + i)^Y; Corpus = E × [(1 − (1 + g)^−N) ÷ g] × (1 + g), where g = [(1 + post-retirement return) ÷ (1 + i)]^(1/12) − 1Y is years to retirement, N is months in retirement and g is the monthly return after adjusting for inflation. The corpus is the value at retirement of expenses that keep rising with inflation, each paid at the start of the month; the SIP is then worked out like the goal calculator.
Worked example
A 35-year-old spending ₹40,000 a month, retiring at 60 and planning till 85, with 6% inflation, 12% return before and 7% after retirement, would need about ₹1.72 lakh a month at 60. The illustrated corpus is about ₹4.59 crore, and the SIP needed is roughly ₹24,200 a month.
Tips
- Count only expenses that continue after retirement; a home loan that ends at 55 need not be included.
- Add a separate health cover and emergency reserve, because medical costs often rise faster than general inflation.
- If you have a pension, EPF or NPS, subtract what they are likely to provide before deciding your SIP.
Frequently asked questions
How much money do I need to retire in India?
It depends on your expenses, retirement age and how long you plan for. For example, ₹40,000 a month today may need a corpus of about ₹4.59 crore at 60 in our illustration, at 6% inflation and 7% return after retirement. Your own inputs will give a different figure.
Why does the retirement corpus look so large?
Inflation raises your expenses every year, both before and after retirement. Twenty-five years at 6% makes today's expense more than four times larger, and the corpus must fund that rising amount for decades. Starting early keeps the monthly SIP manageable.
What return should I assume after retirement?
Use a lower rate than before retirement, because most retirees hold more debt and hybrid funds to reduce volatility. The calculator lets you set this separately. A cautious post-retirement rate gives a larger corpus target, which adds a buffer.
Does the retirement calculator include EPF, pension or NPS?
No, it shows the total corpus needed for your expenses. If you expect money from EPF, NPS, a pension or rent, reduce the target by that amount or reduce the monthly expense you enter. We help you put all these sources together into one plan.