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Retirement Calculator

Calculate the retirement corpus you'll need and the monthly savings required to reach it, based on your target age and expenses. Free, instant.

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⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.

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How retirement planning works

Retirement planning has two phases: the accumulation phase(saving and investing before retirement) and the distribution phase(withdrawing from the corpus after retirement). This calculator models both:

  • Accumulation: How much to save monthly at the pre-retirement return rate to reach the required corpus.
  • Distribution: How large a corpus is needed to sustain inflation-adjusted monthly expenses throughout retirement, using the real return (post-retirement return minus inflation).

Key inputs and their impact

  • Inflation (6% default): The biggest wildcard. Every 1% increase in assumed inflation significantly increases the required corpus.
  • Life expectancy: Plan to at least 85–90 years. Running out of money in old age is a serious risk. Use a longer horizon.
  • Pre-retirement return: Higher assumed returns reduce the monthly savings needed. Be conservative — use 10–12% for equity-heavy portfolios.

Rule of thumb: retire at 60 with about 25x expenses

For Indian retirees with a 25-year retirement horizon (age 60–85) and 6% inflation, a corpus of approximately 22–25× your annual retirement expenses (at the prices of your retirement year) is a reasonable starting target: this calculator gives about 22× at its default 7% post-retirement return, and exactly 25× if the corpus earns only the inflation rate. The 25× end matches the 4% safe withdrawal rate research originally published by William Bengen in "Determining Withdrawal Rates Using Historical Data".

Common use cases

Salaried professionals in their 30s use the calculator to find out how much they need to save monthly via SIP in addition to their EPF contributions to retire comfortably at 60. Those approaching 50 run the numbers with a shorter accumulation window to see whether their current corpus is on track or whether they need to increase monthly savings. Financial planners use it with clients to illustrate how a 2% change in assumed inflation dramatically increases the required corpus, reinforcing why building in a buffer matters. Early retirement seekers model a 45- or 50-year retirement age to understand the much larger corpus required when the distribution phase spans 40+ years.

Frequently asked questions

How much corpus do I need to retire?
The required corpus depends on your monthly expenses at retirement (inflation-adjusted), how long retirement will last, and the return your corpus earns during retirement. This calculator uses the present value of annuity formula, adjusted for the real return (nominal return minus inflation) during the retirement phase.
What is the 25x rule for retirement?
The 25x rule (from the 4% safe withdrawal rate research) says you need 25 times your annual expenses as your retirement corpus. For example, if you need ₹60,000/month (₹7.2L/year) at retirement, you need ₹7.2L × 25 = ₹1.8 Crore. This assumes a 60:40 equity-bond portfolio with a 30-year retirement horizon.
What return should I assume pre-retirement?
For a diversified equity mutual fund portfolio over 15+ years, 10–12% CAGR is a reasonable historical Indian market estimate. For a conservative balanced portfolio, use 8–10%. Always plan conservatively — if returns are higher, you end up with more; if lower, you won't fall short.
What return should I assume post-retirement?
Post-retirement, most people shift to lower-risk investments. A debt-heavy portfolio (FDs, bonds, annuities) might earn 6–8% p.a. The calculator uses the real return (post-retirement return minus inflation) to determine how long your corpus will last.
Should I account for EPF, NPS, and other retirement accounts?
Yes. The corpus calculated here is the total you need at retirement. Add your current EPF, NPS, PPF and other retirement balances together and enter the total in 'Retirement savings so far': the calculator grows it at your pre-retirement return, subtracts it from the corpus needed, and shows the monthly saving for the remaining gap. Future contributions to those accounts are not counted, so include them by raising the amount or lowering the monthly figure yourself.

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