Retirement Calculator
See how much corpus you need to keep today's lifestyle after inflation.
Retirement Corpus Planner
Retirement planning starts with how much you spend today, not how much you earn. This calculator inflates current expenses to your retirement age and estimates the corpus needed to fund those years, then shows how much to save monthly to close the gap.
How to use this calculator
Start with today's monthly expenses. Remove EMIs that end before retirement and add expected medical or travel costs. Inflate at 6% to 7% to reflect Indian consumer inflation over 20 to 30 years.
Enter current retirement savings and monthly SIP if you already invest. The tool shows the gap still to fill by retirement age. If required SIP looks too high, try retiring at 62 instead of 58 or trim expense assumptions and recalculate.
Pair the corpus with a withdrawal plan. Many Indian planners use 3% to 4% of corpus per year rather than the US 4% rule because healthcare inflation runs higher here. For the safe-income slice, compare Post Office MIS monthly payouts and SCSS quarterly interest with bank FDs before you lock rates.
Revisit the plan after major life events: home purchase, child's education, or a long sabbatical. Each event changes both expenses and the savings rate you can sustain until retirement age.
Inflation impact on expenses
Future monthly expense = current monthly expense × (1 + inflation)^years Example: ₹80,000 monthly expenses today at 6% inflation for 25 years. Future need ≈ ₹3.4 lakh per month in nominal terms. Corpus needed depends on expected return during retirement and years in retirement. If you need ₹3.4 lakh monthly for 25 retired years with 7% return on corpus, required nest egg runs into multiple crores. Include expected EPF and gratuity in existing savings so you do not double-count.
Frequently Asked Questions
What is the 4% rule?
A FIRE concept suggesting 4% annual withdrawal from portfolio may sustain 30 years. In India, planners often use 3% because inflation and healthcare costs run higher.
Hold equity after retirement?
Moving 100% to FDs risks inflation erosion. Many keep 30% to 40% in equity post-retirement to preserve purchasing power.
Does calculator use current savings?
Yes. It projects existing corpus growth and calculates SIP only for the shortfall.
Include EPF in corpus?
Yes. Add expected EPF and gratuity so mutual fund SIP targets are not inflated.
What inflation rate to use?
6% to 7% is common for Indian household budgets. Healthcare line items may need 8% or higher.
Retire at 58 vs 60?
Two extra working years reduce corpus needed and add two more years of contributions. Run both scenarios.
Annuity vs SWP?
Annuities give guaranteed income but lower flexibility. Systematic withdrawal from mutual funds offers growth potential with market risk.
MIS or SCSS for retirement income?
SCSS suits eligible seniors who want a higher notified rate paid quarterly. MIS pays monthly and has no senior-age lock, with a lower deposit ceiling. Run both calculators before parking a large lump sum.
How much to save each month?
The calculator converts the corpus shortfall into a monthly SIP at your chosen return assumption. Raise the return assumption only if your portfolio mix truly supports it.
Medical costs in retirement?
Budget separate health insurance and a medical buffer outside the lifestyle expense line. Healthcare inflation in India often runs above general CPI.
When to start retirement SIP?
Starting ten years earlier often lowers required monthly savings more than doubling the return assumption. Time in market matters as much as return.
Include spouse income?
If both partners retire together, combine expected EPF, NPS, and mutual fund corpus on each side before calculating the household shortfall.
FIRE number for India?
Financial independence targets in India should use higher inflation and lower safe withdrawal rates than US FIRE calculators suggest.
Need a quick number check?
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Related retirement income tools
After you size the corpus, check government small-savings income and other building blocks seniors often use alongside equity SIPs.
- SCSS Calculator
Quarterly interest for eligible seniors, with editable rate and tenure.
- MIS Calculator
Monthly Post Office MIS income on a lump-sum deposit.
- NPS Calculator
Project NPS Tier I corpus from monthly contributions.
- EPF Calculator
Estimate provident fund balance at retirement age.
- SWP Calculator
Model systematic withdrawals once the corpus is built.
Looking at insurance cover too?
Policybazaar helps you compare health plans if you are sizing cover alongside investments.