Calculators

Retirement Calculator

How big a corpus you need to retire, whether your savings will get there, and the extra monthly investment to close any gap.

How it works

First, today's spending is grown by inflation to the year you retire. The corpus then has to pay that amount at the start of every year of retirement, rising with inflation, while the rest stays invested: the present value of a growing annuity. Your current savings and monthly investment, raised each year by the step-up, are grown at the pre-retirement return to see how close you get.

corpus = E × (1 − ((1+g)/(1+r))ᴺ) × (1+r) ÷ (r − g)
E
Yearly spending in the first year of retirement
g
Inflation
r
Return during retirement
N
Years in retirement

Worked example

Age 30, retiring at 60 and planning to 85, spending ₹50,000 a month today with 6% inflation. ₹5 lakh saved, investing ₹20,000 a month rising 5% a year at 11%, and earning 7% in retirement.

  1. 1Monthly spending at 60: 50,000 × 1.06³⁰ = ₹2,87,175
  2. 2Corpus needed at 60 for 25 years: ₹7.71 crore
  3. 3Savings at 60: ₹8.94 crore
  4. 4FIRE number (25 × first year's spending): ₹8.62 crore

On course, with about ₹1.23 crore to spare.

Frequently asked questions

How much do I need to retire in India?

It depends mostly on your spending and how early you stop. A useful rule of thumb is 30–35 times your yearly expenses at retirement for an Indian retirement of 25–30 years, higher than the 25× of the US-based 4% rule because inflation is higher. This calculator works it out year by year from your own numbers.

What is the FIRE number?

The corpus that lets you live off investments indefinitely: typically 25 times a year's expenses, from the 4% withdrawal rule. FIRE stands for Financial Independence, Retire Early. Early retirees plan for 40 or 50 years, so a lower withdrawal rate and a larger multiple is safer.

Should I count EPF and NPS?

Yes. Add their current balances to your savings and your monthly contributions, including the employer's share, to the monthly investment. NPS forces 40% of the corpus into an annuity at 60, which pays a lower return than the rest.

What return should I assume?

Before retirement, 10–12% for a mostly equity portfolio and 7–8% for mostly debt. In retirement, most people move to safer assets, so 6–8%. Being conservative costs little; being too optimistic means running short when it is hard to fix.

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