Retirement Calculator - Estimate Your Retirement Savings & SIP
Calculate your retirement corpus, assess savings gap, and determine the monthly investment required.
Retirement Planning Parameters
Retirement Summary
Calculation Methodology & Rules
The Retirement Calculator helps you plan for your financial independence by calculating the exact corpus you will need and the monthly SIP required to reach it.
1. Inflation-Adjusted Expenses at Retirement
Your current annual expense is projected to your retirement age using:
Expense at Retirement = Current Annual Expense × (1 + Inflation Rate / 100)Years to Retire
2. Real Post-Retirement Return
Post-retirement, your money continues to grow, but inflation continues to erode it. The real rate of return is calculated as:
Real Return = [(1 + Post-Retirement Return %) / (1 + Inflation %)] - 1
3. Total Corpus Needed
We find the present value of an annuity that grows with inflation. If the real return is exactly 0:
Corpus = Expense at Retirement × Retirement Years
Otherwise, the formula is:
Corpus = Expense at Retirement × [1 - (1 + Real Return)-Retirement Years] / Real Return
Frequently Asked Questions
You need a corpus large enough to fund your inflation-adjusted expenses throughout your post-retirement life expectancy. This tool estimates it by growing your current expenses by inflation and calculating the present value of an annuity based on post-retirement return assumptions.
The monthly investment required depends on the retirement corpus gap. If your existing savings are projected to fall short of the required retirement corpus, this calculator back-calculates the monthly SIP required at your assumed pre-retirement rate of return.
Inflation erodes the purchasing power of your money over time. A monthly expense of ₹50,000 today will require ₹2,55,584 per month in 28 years at a moderate 6% inflation rate. Failing to account for inflation is the most common reason people run out of money in retirement.