Retirement Corpus Calculator - How Much Do You Need to Retire?
The most important personal finance question answered with precision. Enter your age, monthly expenses, and inflation rate to find the exact retirement corpus and monthly SIP needed.
Retirement Corpus Needed
₹6.82 Cr
Monthly SIP Required (starting today)
₹19,316
for 30 years at 12% expected returns
Monthly Expense at Retirement
₹2.87 L
Years in Retirement
25 years
Total Investment
₹69.54 L
Wealth from Compounding
₹6.12 Cr
How the Retirement Calculator Works
This calculator works backward from your desired retirement lifestyle:
- Inflates your current expenses to find what they will cost at retirement age
- Calculates total corpus needed to sustain those expenses for your entire retirement (adjusting for post-retirement returns and ongoing inflation)
- Computes the monthly SIP required to build that corpus before retirement at your expected pre-retirement return rate
Retirement Corpus Formula
Step 1: Monthly expense at retirement = Current expense × (1 + inflation)^years_to_retire
Step 2: Real return rate = ((1 + post_return) / (1 + inflation)) - 1
Step 3: Corpus needed = Annual expense × (1 - (1 + real_rate)^(-years_in_retirement)) / real_rate
Step 4: Monthly SIP = Corpus / [((1+r)^n - 1) / r × (1+r)]
Frequently Asked Questions - Retirement Planning
What is a retirement corpus?
A retirement corpus is the total amount of money required to maintain your desired lifestyle after retirement. It must account for inflation, medical expenses, and your life expectancy. The corpus should generate enough returns to cover monthly expenses without depleting the principal too quickly.
How much retirement corpus do I need?
A common rule of thumb is 25-30x your annual expenses at retirement. If you need ₹2L/month at 60, your corpus should be ₹6-7.2 Cr. Use this calculator for a precise number based on your specific situation including inflation and post-retirement returns.
Why is inflation so important in retirement planning?
At 6% inflation, ₹50,000/month today becomes ₹2.87L/month in 30 years. Most people underestimate this. Without accounting for inflation, you'll run out of money 10-15 years into retirement. This is the #1 retirement planning mistake.
At what age should I start planning for retirement?
Immediately. Starting at 25 vs 35 can reduce your required monthly SIP by 50-60%. For example, to build ₹5 Cr by 60 at 12% returns: starting at 25 needs ~₹7,500/month, starting at 35 needs ~₹20,000/month. Compounding rewards early starters disproportionately.
Can SIPs build a retirement corpus?
Yes, SIPs in equity mutual funds are the most accessible way to build a large retirement corpus. Historical NIFTY 50 returns have been 12-13% CAGR over 20+ years. Combine equity SIPs with NPS (additional tax benefits) and PPF (risk-free component) for a balanced retirement portfolio.
How much should I save monthly for retirement?
A general guideline: save 20-30% of your monthly income for retirement. But the exact amount depends on your goals. Use this calculator to find your specific number. Consider using a Step-Up SIP to increase contributions as your salary grows.
Retirement planning for Indians
Retirement corpus = annual expenses × years in retirement adjusted for inflation. If you need ₹6 lakh/year today and retire in 25 years at 6% inflation, you will need ~₹25.8 lakh/year in year-1 of retirement. Multiply by 25–30 (safe withdrawal heuristic) for target corpus — often ₹5–10 crore for urban middle-class lifestyles.
EPF, PPF, NPS, and gratuity form the government/employer pillar; mutual fund SIPs form the voluntary wealth pillar. NPS offers market-linked returns with partial equity allocation (up to 75% until age 50) plus ₹50,000 extra 80CCD(1B) deduction.
The 4% rule in Indian context
The 4% withdrawal rule (US-origin) suggests withdrawing 4% of retirement corpus annually. In India, account for higher inflation (5–6%) and healthcare costs. Many planners use 3–3.5% safe withdrawal or combine SWP from hybrid funds with SCSS/senior FD income.
Action checklist by age
20s: start SIP even if small. 30s: increase SIP with income, buy term insurance. 40s: peak earning — maximize step-up SIP and NPS. 50s: shift 20–30% to debt/hybrid, review retirement gap. 60s: implement SWP, claim EPF/PPF maturity strategically across financial years for tax efficiency.