Retirement Calculator

What Does the Retirement Calculator Do?

It estimates how much money you need on the day you retire to cover your living costs for the rest of your life, with prices rising every year. It then checks how far your current savings will go and how much you need to invest every month to fill the gap.

How to Use It

1. Enter your age, retirement age and the age you want to plan until.
2. Enter your monthly expenses today and the inflation you expect.
3. Enter the return you expect before and after retiring - usually lower after, as you move to safer investments.
4. Enter what you have saved so far.

Example

A 32-year-old who spends ₹50,000 a month and wants to retire at 60 will need about ₹2,55,584 a month by then, at 6% inflation. To pay that until 85, with 7% returns after retiring, they need about ₹6.66 crore at 60. Their ₹8 lakh of savings could grow to ₹1.49 crore at 11%, leaving a gap of ₹5.18 crore - which an investment of about ₹22,995 a month for 28 years would fill.

How the Corpus Is Worked Out

The calculator treats your retirement spending as a monthly payment that rises with inflation, and finds the amount that, earning the after-retirement return, pays it until the end of your plan. A bigger gap between return and inflation means a smaller corpus is needed.

Making the Target Easier

• Start early: years of compounding matter more than the amount.
• Raise your investment each year with your salary - a step-up SIP does this automatically.
• Count your EPF, PPF and NPS - they are part of the same corpus.

Limitations

Real returns and inflation vary, and medical costs in old age can be much higher than today's spending suggests. Review the plan every few years. For the monthly investment itself, use the SIP Calculator; for withdrawals after retiring, the SWP Calculator.