Retirement Corpus Calculator

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A Retirement Corpus Calculator estimates the total amount required at retirement to sustain future expenses, considering factors such as inflation, life expectancy, and expected returns. More info →

Input

Enter retirement planning inputs.

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How This Calculator Works

This calculator estimates how much money you need on the day you retire to cover your living costs for the rest of your life, and how much to invest every month until then. It allows for prices rising every year, both before and after retirement.

The Formulas

Expense at retirement = Today's expense × (1 + inflation)^{years to retire}
Corpus = Annual expense × [1 − ((1 + inflation) ÷ (1 + post return))^N] ÷ (post return − inflation)

N = years in retirement · Monthly SIP = Corpus ÷ {[(1 + i)ⁿ − 1] ÷ i × (1 + i)}, i = pre-retirement return ÷ 12

What Each Input Does

Current Age / Retirement Age / Life Expectancy: Set how many years you have to save, and how many years the money must last.
Current Monthly Expense: What you spend each month today.
Inflation (%): How fast your expenses rise each year.
Pre-Retirement Return (%): The return on your savings while you are working. It sets the monthly SIP needed.
Post-Retirement Return (%): The return on the corpus once you retire. It sets how big the corpus must be.

Step by Step

Today's monthly expense is grown by inflation up to your retirement age.
It is multiplied by 12 for the yearly expense in the first year of retirement.
The corpus is the amount that, earning the post-retirement return, pays that rising expense every year until life expectancy.
The monthly SIP is the amount that, invested at the start of each month at the pre-retirement return, grows to the corpus.

Reading the Result

Corpus – your savings target for the day you retire.

Monthly SIP – starting earlier lowers it a lot.

Quick Example

Age 30, retiring at 60, life expectancy 85, expenses of 50,000 a month, inflation 6%, returns of 12% before and 8% after retirement. In 30 years the monthly expense becomes 287,175. Covering 25 years of rising expenses needs a corpus of 64,323,086, which means investing about 18,222 a month from now.