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Retirement corpus calculator

  

Your expenses grow with inflation until you retire and keep growing afterwards. The corpus is what you need on the day you retire so it lasts to the age you enter, earning the post-retirement return. Everything is a steady-rate assumption. Tax is ignored.

50 thousand

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Corpus needed at retirement

₹6,94,68,933

Your ₹50,000 a month today becomes ₹2,87,175 a month at 60. To get there you would invest about ₹19,680 a month.

Monthly expense at retirement
₹2,87,175
Monthly SIP needed
₹19,680
Years in retirement
25

How big a retirement fund is big enough

The hardest part of retirement planning is that the number looks absurd at first. A person spending ₹50,000 a month today, aged 30, plans to retire at 60. At 6% inflation, that ₹50,000 becomes about ₹2.87 lakh a month by then. That is the first shock.

The second is the corpus. To fund that spending until 85, assuming the money earns 8% after retirement, the pot at 60 needs to be about ₹6.95 crore. The monthly SIP that builds this over 30 years at 12% is about ₹19,680.

None of these inputs will be exactly right. Inflation may be lower, returns may be lower, and the spending itself changes: the cost of a home loan ends, but healthcare rises. The value of the tool is to see the shape: starting early cuts the monthly SIP sharply. Waiting 10 years can more than double it.

Treat the result as a direction. Revisit it every year, raise your SIP when your salary rises (a step-up SIP does this automatically), and count EPF, NPS and any property income against the target.

Sources

What this calculator does not account for

  • Tax on withdrawals.
  • Pension, EPF and NPS income unless you subtract them yourself.
  • Changes in spending in later life, such as healthcare.

How this is calculated

Formula: Corpus that lasts to your chosen age

corpus =present value of expenses that grow with inflation, earning the post-retirement return

What the symbols mean

  • expenseYour monthly spending today, in today's rupees.
  • inflationYearly rise in prices, which grows your expense.
  • post returnWhat the corpus earns after you retire.

Good to know

  • The SIP needed is found by solving the SIP future-value formula for the corpus.
  • For a simpler rule of thumb, see the retirement calculator.

Read the full methodologyFound an error? Contact us

Worked examples

Each example is worked out by the same code as the calculator above.

₹50,000 a month, age 30, retire at 60, live to 85, 6% inflation, 12% before and 8% after

Expense at 60 is ₹2.87 lakh a month. Corpus needed ₹6.95 crore. Monthly SIP about ₹19,680.

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Questions

How much corpus do I need to retire?

It depends on your expenses, years of retirement and inflation. A common rule is 25 to 30 times yearly spending, but this tool works it out directly.

Which inflation rate should I use?

6% is a common long-run assumption for India. Healthcare and education run higher, so some people use 7%.

Does the corpus include pension and EPF?

No. Subtract what EPF, NPS or a pension will give before deciding how much more you need from SIPs.

Is it too late to start at 40?

No, but the SIP will be larger. The tool shows the monthly amount, and you can test a higher retirement age.