Planning calculator
Retirement Calculator
Retirement planning is one inflation calculation people rarely do: what today's monthly spending will cost in thirty years, and how large a corpus is needed to fund it for the decades after you stop earning.
Your numbers
Plan long. Running out at 82 because you assumed 80 is the failure that matters.
India's long-run average sits around 6%.
Lower than the pre-retirement figure — the portfolio gets more conservative.
Corpus you need at retirement
77% of the way₹8,23,94,245
Today's ₹60,000 a month becomes ₹3,06,701 a month by age 60 at 6% inflation. That has to be funded for 25 years, and keep pace with prices throughout.
- On current track
- ₹6,36,18,626
- Shortfall
- ₹1,87,75,619
- Real return in retirement
- 0.94%
What closes the gap
Adding this to your existing ₹20,000 a month, and keeping it up for 28 years, would fund the shortfall of ₹1,87,75,619.
Extra per month₹8,338
Your corpus against the target
The flat line is what you need. The rising line is where you are heading.
- Projected corpus
- Required corpus
The parts of the answer
Where the projected corpus comes from.
Years to retirement
28
Existing savings grow to
₹1.86 Cr
Your current corpus, compounded to retirement.
Current investing adds
₹4.5 Cr
Future value of what you already put in each month.
Retirement lasts
25 yrs
From retirement to the planning age.
The arithmetic
How this calculator works
No proprietary model, no adjustment factor we will not name. This is the standard formula, applied exactly as written.
1. Expenses at retirement
E = current monthly expenses × (1 + inflation)^years
2. Real return during retirement
real = (1 + post-return) ÷ (1 + inflation) − 1
3. Corpus required (inflation-linked annuity)
C = E × 12 × [ (1 − (1 + real)^−m) ÷ real ] × (1 + real)
4. Shortfall converted to a monthly investment
SIP = gap ÷ ( [((1 + i)ⁿ − 1) ÷ i] × (1 + i) )- years
- Years from today until you retire
- m
- Years spent in retirement
- real
- Return after inflation, during retirement
- i
- Monthly pre-retirement return
- C
- Corpus needed on the day you retire
- Using the real rate is what allows withdrawals to rise with inflation each year while keeping the arithmetic honest. A model that withdraws a flat rupee amount for twenty-five years quietly assumes your spending falls by half in real terms.
- When the real rate is effectively zero — post-retirement return equal to inflation — the formula degenerates cleanly to annual expenses multiplied by the number of retirement years.
Worked example
The same maths, on real numbers
A 32-year-old spending ₹60,000 a month, retiring at 60 and planning to 85, with ₹10,00,000 saved and ₹20,000 a month already going in.
| Age now / at retirement | 32 / 60 |
|---|---|
| Plan until | 85 |
| Expenses today | ₹60,000 / month |
| Inflation / returns | 6% · 11% before, 7% after |
| Expenses at 60 | ₹3,06,701 / month |
| Corpus required | ₹8.24 crore |
| On current track | ₹6.36 crore |
| Extra needed each month | ₹8,338 |
The number that surprises people is not the corpus — it is the ₹3,06,701. That is what ₹60,000 of today's spending costs after twenty-eight years at 6%, and it is why intuition consistently underestimates retirement by a wide margin. The good news sits in the last line: a shortfall of ₹1.88 crore closes with an extra ₹8,338 a month, because that contribution has twenty-eight years to compound. Left another ten years, the same gap needs roughly three times as much per month.
What this calculator assumes
- Expenses in retirement match your current spending, adjusted for inflation.
- Withdrawals happen at the start of each retirement year and rise annually in line with inflation.
- Returns arrive smoothly at the rates entered, higher before retirement and lower after.
- Existing savings and current contributions are earmarked for retirement and nothing else.
What it deliberately leaves out
- Healthcare costs in later life typically inflate faster than general prices, and are not treated separately here.
- EPF, NPS, gratuity and any pension are not modelled individually — include them in your existing savings and monthly contribution figures.
- One-off future events (a property sale, an inheritance, a child's wedding) are not included.
- Sequence risk is ignored. A poor first decade of retirement is far more damaging than a poor last one.
Questions about the retirement calculation
Two compounding effects stacked on each other. Inflation multiplies your spending several times over before you retire, and then that inflated amount has to be funded for twenty-five years or more, during which it keeps rising. Most rules of thumb capture the first effect and quietly ignore the second.
Lower than your pre-retirement figure, because the portfolio should get more conservative as you approach and enter retirement. Something in the range of 6% to 8% is a defensible assumption for a balanced allocation. The number that really matters is the real return — the gap between that figure and inflation.
Once a year, and immediately after any change in income, dependants or planned retirement age. Small annual corrections are painless. A single correction made ten years late usually is not.
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Have the numbers?
You have the numbers. Now build the plan.
A calculator answers one question well. A plan decides which questions are worth asking in the first place — and in what order.