How the Retirement Calculator Works
Enter your current age, planned retirement age, current monthly expenses, expected inflation rate, current savings, monthly investment, expected returns before and during retirement, and your life expectancy.
The calculator first inflates your current monthly expenses forward to your retirement date, then works out the corpus needed at retirement to fund those (inflation-adjusted) expenses for the rest of your life, discounted at your expected post-retirement return.
It then projects your current savings and monthly investments forward to retirement to estimate your likely corpus, and compares the two to show a surplus or shortfall — along with the monthly investment that would be needed to close any gap.
Formula Used
The required corpus is the present value (at retirement) of your inflation-adjusted expenses:
Required Corpus ≈ Future Monthly Expense × Annuity Factor(real rate, months in retirement)- Future Monthly ExpenseCurrent Monthly Expenses × (1 + Inflation)^Years to Retirement
- Real RateThe post-retirement return adjusted for inflation continuing during retirement
- Projected CorpusFuture value of current savings + future value of monthly SIP, both compounded at the pre-retirement return
Example Calculation
A 30-year-old planning to retire at 60 with expenses of ₹50,000/month today.
- Current Age / Retirement Age30 / 60
- Current Monthly Expenses₹50,000
- Expected Inflation6% p.a.
- Current Savings₹10,00,000
- Monthly Investment₹20,000
- Return Before / During Retirement12% / 7%
- Life Expectancy85
- ResultA required vs. projected corpus comparison, with a surplus/shortfall and a suggested monthly investment.
Important Assumptions
- This calculator provides an estimate for planning purposes only — it is not financial advice, and actual outcomes depend on real market returns, inflation and your personal circumstances, none of which can be predicted with certainty.
- Expenses are assumed to grow at the same inflation rate before and during retirement, and investment returns are assumed to be constant, which real markets rarely follow exactly.
- The calculator does not account for other retirement income sources (like a pension, NPS annuity, or EPF/PPF maturity), taxes, healthcare cost inflation (which often runs higher than general inflation), or major one-time expenses.
- Consider consulting a certified financial planner for a comprehensive retirement plan tailored to your specific situation.