What is a Retirement Calculator?
A retirement calculator estimates the corpus you need to retire comfortably and the monthly SIP required to build it. It projects your current expenses to your retirement date using inflation, works out how much money will sustain those expenses through your retired years, and then calculates how much you need to invest every month from today.
With rising life expectancy and no fixed pension for most private-sector employees in India, planning retirement early is one of the most important financial decisions you can make.
How to use the Retirement Calculator
- 1Enter your current age, planned retirement age and life expectancy.
- 2Enter your current monthly expenses.
- 3Set the expected inflation rate (India's long-term average is around 6%).
- 4Set the expected return before retirement (equity-heavy) and after retirement (more conservative).
- 5Add any existing retirement savings and read the corpus needed and the monthly SIP required.
Retirement Calculation Formula
- E
- — Monthly expense at retirement, after inflation
- y
- — Years until retirement
- rᵣ
- — Monthly real return after retirement = inflation-adjusted post-retirement return
- m
- — Months in retirement = (life expectancy − retirement age) × 12
The required SIP is then the monthly investment that grows to this corpus by your retirement date at your pre-retirement return.
Example: Age 30, retire at 60, ₹50,000 monthly expenses today
| Monthly expense at 60 (6% inflation) | ₹2,87,175 |
|---|---|
| Corpus needed (to age 85, 7% post-retirement return) | ≈ ₹7.68 crore |
| Monthly SIP needed (12% return) | ₹21,745 |
Inflation is the biggest factor: today's ₹50,000 lifestyle costs almost ₹2.9 lakh a month in 30 years. Wait 10 years to start and the SIP needed jumps to about ₹76,800 a month — more than 3.5 times as much.
Common retirement planning mistakes
- Ignoring inflation — planning with today's expenses badly underestimates the corpus.
- Starting late — each year of delay sharply increases the SIP you need.
- Underestimating life expectancy — plan for at least 85–90 years.
- Forgetting healthcare costs — medical inflation in India often runs higher than general inflation.
- Being too conservative too early — you need equity growth in your 30s and 40s.
Where to invest for retirement in India
A good retirement portfolio usually combines equity mutual fund SIPs for long-term growth with tax-efficient options like EPF, PPF and NPS. As you approach retirement, gradually shift towards debt and hybrid funds, and use an SWP after retirement to draw a regular income from your corpus.
Related calculators
Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.