Retirement Savings Calculator
Retirement Corpus Needed
$2.44M
in 30 years
Monthly SIP Required
$269
per month now
Breakdown
Years to retirement 30 years
Future monthly expenses $17,230
Corpus needed at retirement $2.44M
Existing savings at retirement $1.50M
Additional corpus to build $939.9K
Monthly SIP needed $269
About
The Retirement Savings Calculator estimates the total corpus you need at retirement and the monthly contribution required to reach it. It accounts for your current age, target retirement age, expected monthly expenses in retirement, the number of years in retirement, an assumed inflation rate to project future expenses, and your expected pre- and post-retirement investment returns. If you already have existing savings, those are grown forward to reduce the additional contribution required. This tool gives you a realistic target so you can start or adjust your savings plan today.
How to use
- 1 Enter your current age and the age at which you plan to retire.
- 2 Enter your current monthly expenses — the tool adjusts for inflation at retirement.
- 3 Set your expected years in retirement (life expectancy minus retirement age).
- 4 Set the assumed annual inflation rate and pre/post-retirement return rates.
- 5 Optionally enter existing retirement savings to reduce the required monthly contribution.
- 6 The tool shows the target corpus and the monthly SIP needed to reach it.
- Why does retirement planning need to account for inflation?
- Inflation erodes purchasing power over time — what costs ₹50,000 per month today will cost significantly more in 25 years. At 6% annual inflation, today's ₹50,000 monthly expense becomes ₹214,000 at retirement. Ignoring inflation causes you to severely underestimate how much corpus you need, potentially running out of money during retirement.
- What is the 4% withdrawal rule for retirement?
- The 4% rule (from the Trinity Study) states that you can safely withdraw 4% of your retirement corpus each year, adjusted for inflation, without depleting it over 30 years. This implies you need 25× your annual retirement expenses as your corpus. For example, if you need ₹6 lakh per year in retirement, you need ₹1.5 crore. This rule assumes a balanced portfolio and may need adjustment based on your specific situation.
- What is the FIRE number and how is it calculated?
- FIRE (Financial Independence, Retire Early) followers calculate a FIRE number — the corpus at which they can retire. Using the 4% rule: FIRE Number = Annual Expenses × 25. For example, annual expenses of $40,000 requires a $1,000,000 FIRE number. Lean FIRE uses lower expenses for a smaller number; Fat FIRE targets higher expenses for a more comfortable retirement. This calculator helps you project when you can reach your target corpus.