Retirement Calculator
Corpus needed and monthly SIP to retire.
Inputs
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
Corpus = Σ (Annual expense_y / (1 + return)^y); SIP from annuity-due formula
Future monthly expenses are inflated to retirement age, converted to annual outflows, and discounted over a 25-year retirement horizon at the expected return. The gap between that corpus and your projected current savings is filled by a monthly SIP using the same annuity-due convention as the SIP calculator.
Worked example
A 30-year-old spending ₹50,000/month today, retiring at 60, needs a corpus of about ₹5.7 crore — monthly expenses at retirement inflate to roughly ₹2.87 lakh. With ₹5 lakh saved today, the calculator suggests a monthly SIP of about ₹21,280 at 10% return and 6% inflation, assuming a 25-year post-retirement drawdown.
Where this can give the wrong answer
- The 25-year retirement horizon is hard-coded — if you expect to live longer or retire earlier, the required corpus changes materially but isn't adjustable here.
- Healthcare costs often inflate faster than general CPI; using 6% inflation on all expenses may understate late-life needs.
- If your current corpus plus its growth already covers the target, the suggested SIP drops to zero — that doesn't mean you're fully funded, just that this simplified model sees no gap.
FAQ
- Because expenses grow with inflation every year during retirement, and future rupees are discounted by the expected return. You need enough at age 60 to fund rising costs for 25 years while the balance continues to earn returns.