Retirement Corpus Calculator
A comfortable retirement needs a corpus large enough to replace your income for decades after your last paycheque. This retirement corpus calculator works out how big that fund must be once inflation has pushed up your living costs, and the monthly SIP required to build it in time. Enter your current expenses, years to retirement, expected inflation, and the returns you expect before and after you stop working, and it sizes both the target corpus and the disciplined saving needed to reach it.
Corpus Needed
₹7,71,48,478
Required Monthly SIP
₹21,856
Monthly Expense at Retirement
₹2,87,175
About the Retirement Corpus Calculator
A retirement corpus calculator estimates the total savings you need at retirement to fund your future living expenses, and the monthly investment needed to accumulate it. It first inflates today's expenses to what they will cost when you retire, then sizes a corpus that can sustain those withdrawals through your remaining years.
Why it is useful
Most people save an arbitrary amount and hope it is enough. This calculator replaces guesswork with a target grounded in your own spending, and shows how ignoring inflation can leave you dangerously short. Seeing the required monthly SIP early gives compounding the years it needs to do the heavy lifting.
How the calculation works
The tool first inflates your current monthly expenses to retirement with FV = expenses × (1 + inflation)^years, then sizes a corpus that can sustain those inflation-adjusted withdrawals while it keeps earning a post-retirement return, and finally solves the SIP needed to reach that corpus at your pre-retirement return using P = FV × i ÷ (((1 + i)^n − 1) × (1 + i)).
Key inputs explained
- Current monthly expenses: What you spend today; the base the calculator inflates to your retirement age.
- Years to retirement: How long your investments have to grow before you retire.
- Expected inflation: The yearly rise in living costs, typically assumed around 6% in India.
- Pre-retirement return: The annual return you expect on investments while you are still saving.
- Post-retirement return: The safer return you expect on the corpus once you begin drawing from it.
Example calculation
Inputs
- Current monthly expenses
- ₹50,000
- Years to retirement
- 30
- Inflation
- 6% p.a.
- Pre-retirement return
- 11% p.a.
- Post-retirement return
- 7% p.a.
Calculation breakdown
- Expenses at 60
- ₹50,000 × (1.06)^30 ≈ ₹2.87 lakh/month
- Corpus for 25 inflation-adjusted years
- ≈ ₹7.2 crore
- Monthly SIP at 11% for 30 years
- ≈ ₹25,500
Inflation turns today's ₹50,000 into about ₹2.87 lakh a month at 60, so you need a corpus near ₹7.2 crore to sustain that for 25 years. Investing about ₹25,500 a month at 11% builds it — and starting a few years later would raise that figure sharply.
Benefits
- Turns a vague retirement goal into a concrete corpus and monthly saving target.
- Accounts for inflation, which is the biggest hidden threat to a retirement plan.
- Shows the cost of delay, encouraging you to start investing sooner.
Limitations
- Assumes steady inflation and returns, which vary over a multi-decade horizon.
- Does not account for a pension, EPF, or other income that reduces the corpus needed.
- Ignores lifestyle changes, medical costs, and one-off expenses in retirement.
Tips
- Revisit the plan every few years and adjust for actual inflation and salary growth.
- Add existing EPF, NPS, and PPF balances so you do not over-save through SIPs alone.
- Keep a separate health-insurance and emergency buffer outside the retirement corpus.
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About this calculator
The Retirement Corpus Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.