Retirement Corpus Calculator

What is Retirement Corpus Calculator?

The Retirement Corpus Calculator estimates how much money you need at retirement to maintain your current lifestyle, accounting for inflation. It calculates the required monthly savings to reach that target.

How to Calculate Retirement Corpus

1. Enter your current monthly expenses
2. Enter your current age and desired retirement age
3. Enter expected inflation rate (6% is a reasonable estimate for India)
4. Enter expected return rate on investments
5. Click Calculate to see required corpus, monthly savings needed, and year-wise projection

How Retirement Corpus Calculator is Calculated

Required Corpus = Annual Expense at Retirement × (1 − (1+real_return)^{−retirement_years}) / real_return, where real_return = (1 + nominal_return) / (1 + inflation) − 1. Future expense = current expense × (1 + inflation)^years.

Worked Example

Current expenses ₹50,000/month, age 30, retire at 60, 6% inflation, 10% returns, 25 years in retirement: Expenses at 60 = ₹2.87L/month. Required corpus ≈ ₹5.1 crore. Monthly SIP needed ≈ ₹22,000.

Common Use Cases

• Retirement corpus target setting
• Required monthly savings calculation
• FIRE (Financial Independence, Retire Early) planning
• Pension shortfall analysis

Common Mistakes to Avoid

• Underestimating inflation — using 4% inflation when Indian CPI has averaged 6%. Healthcare costs inflate at 10–15%.
• Not planning for 25–30 years of retirement — average life expectancy is increasing. Planning for only 15 years is risky.
• Using the 25x rule without adjusting for India — 25× annual expenses works at 4% SWR in the US, but Indian inflation requires 30-35x.
• Ignoring healthcare costs in retirement — medical expenses typically increase significantly after 60 and can dwarf normal living costs.

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