Retirement Corpus Calculator
Plan your retirement freedom (FIRE or traditional). Estimate the exact corpus required to sustain your lifestyle after retirement and how much you need to invest monthly.
How it works
First, your current monthly expenses are projected to your retirement age using compound inflation. Next, using the post-retirement real rate of return (accounting for both returns and inflation), the total target corpus is calculated. Finally, using your pre-retirement investment return rate, the required monthly SIP contribution is determined.
Formula
Corpus = E_ret × 12 × frac{1 - (1 + r_real)^{-N}}{r_real}, r_real = frac{r_post - r_inf}{1 + r_inf}
Computes your future living costs inflated to your retirement date, then calculates the present value of a growing monthly annuity funded by your portfolio until life expectancy.
| Symbol | Variable | Unit | Description |
|---|---|---|---|
| E_ret | Monthly expense at retirement | ₹ | |
| r_real | Real post-retirement return rate | decimal | |
| N | Years in retirement (Life Expectancy - Retirement Age) | years | |
| r_post | Post-retirement return rate | decimal | |
| r_inf | Inflation rate | decimal |
Worked example
Age 30 retiring at 60 with ₹50,000 monthly expense
- Current Age:
- 30
- Retirement Age:
- 60
- Life Expectancy:
- 85
- Monthly Expense:
- ₹50,000
- Inflation:
- 6%
- Pre-Retirement Return:
- 12%
- Post-Retirement Return:
- 8%
In 30 years at 6% inflation, ₹50,000/mo becomes ₹2,87,175/mo (₹34,46,095/year). Over 25 years of retirement with a real rate of (8% - 6%)/(1+0.06) ≈ 1.8868%, the required corpus is ₹6.82 Crore. A monthly SIP of ~₹19,324 at 12% annual return builds this corpus.
Limitations
Does not automatically model ad-hoc lump-sum healthcare events or legacy bequests. Review your retirement plan annually.
Frequently asked questions
What is the 4% rule for retirement?
The 4% rule (Trinity Study) suggests that withdrawing 4% of your initial retirement portfolio in year one, and adjusting for inflation thereafter, gives a high probability that your money will last 30 years. In India, higher inflation rates often require a safer 3% to 3.5% withdrawal rate.
How does inflation impact retirement planning?
Inflation exponentially increases your future living costs. At 6% inflation, living expenses double roughly every 12 years. If you need ₹50,000/month today, you will need nearly ₹2.87 Lakh/month in 30 years.
What if I already have existing savings or provident fund (EPF/PPF)?
You can subtract the projected future maturity value of your existing EPF, PPF, NPS, and equity mutual funds from the required corpus to find the net deficit you need to fund with new monthly SIPs.
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Last reviewed: 2026-08-22.