Retirement Calculator
How much do you actually need to retire comfortably? This gives you a ballpark based on your current expenses, inflation, how long you expect to live, and what returns you're counting on. The number is usually bigger than people expect - better to know now.
How to use
- Enter your current age, when you want to retire, and a rough life expectancy.
- Enter your current monthly expenses. Inflation will eat into that purchasing power over time, so factor in a realistic rate.
- Enter expected returns while saving (pre-retirement) and after (post-retirement, usually more conservative).
- Hit Calculate to see the corpus you'll need and how much you should be saving each month to get there.
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Retirement planning comes down to one core question: how large a corpus do you need so withdrawals can cover your expenses without depleting the principal? A common approach is the 4% rule - you need a corpus 25x your annual expenses. At 6% inflation, your expenses double roughly every 12 years, so a lifestyle costing Rs.60,000/month today could cost Rs.1.5 lakh/month in 20 years.
The numbers look daunting at 30 but compounding works strongly in your favour the earlier you start. Saving Rs.10,000/month from age 30 vs starting at 40 (same rate, same retirement age) can result in 2.5x more corpus - entirely from the extra decade of growth. Starting now with a small amount beats starting later with a larger amount.
Frequently Asked Questions
What withdrawal rate should I use?
The 4% rule (corpus = 25x annual expenses) comes from US research. In India, with potentially higher inflation, a 3-3.5% withdrawal rate is more conservative. For Rs.60,000/month retirement expenses, you would need roughly Rs.2.1-2.4 crore corpus.
How much will today Rs.1 lakh be worth at retirement?
At 6% inflation, Rs.1 lakh today becomes roughly Rs.3.2 lakhs in 20 years and Rs.5.7 lakhs in 30 years. Budget your retirement corpus based on future expense levels, not today prices.
Should EPF and PPF count toward the retirement corpus?
Yes. Project your EPF and PPF balances at retirement, add them to other investments, and compute only the gap - the extra amount you still need from NPS, mutual funds, or other assets.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.