Retirement Corpus Calculator
Calculate how much retirement corpus you need and the monthly SIP required to build it. Plan your retirement with inflation-adjusted projections for India.
* All calculations are approximate.
How Retirement Corpus Calculation Works?
Calculate how much retirement corpus you need and the monthly SIP required to build it. Plan your retirement with inflation-adjusted projections for India.
First, your current monthly expenses are projected to retirement age using the expected inflation rate.
The retirement corpus needed is calculated to sustain these inflated expenses for 25 years post-retirement.
The monthly SIP required is then computed based on the corpus target, years to retirement, and expected investment returns.
Starting early dramatically reduces the monthly SIP needed — a 10-year delay can triple the required monthly investment.
Formula Used
Future Expense = Current Expense × (1 + inflation)^years
Corpus = Future Annual Expense × ((1 - (1+r)^-25) / r), where r is the real return rate adjusted for inflation
Important — Read Before You Decide
- The National Pension System (NPS) offers tax benefits under Section 80CCD(1B) up to ₹50,000 over and above the 80C limit of ₹1.5 lakh
- EPF alone is unlikely to build a sufficient retirement corpus — most financial planners recommend supplementing it with SIPs in equity mutual funds
- Healthcare costs in India are rising at 10–14% annually, far exceeding general inflation, and can consume a large portion of your retirement savings
- Inflation at 6% means your expenses will roughly double every 12 years, so ₹50,000/month today becomes over ₹1.6 lakh in 20 years
- Early retirement at 45 instead of 60 can require 3–4 times the corpus because you have fewer earning years and more spending years
- India does not have a universal social security system for the private sector — your retirement income depends entirely on your own savings and investments
- Pension plans like Atal Pension Yojana provide only ₹1,000–₹5,000/month, which is insufficient for most urban households
- Medical insurance premiums increase sharply after age 60, making it critical to factor in health cover costs when planning your retirement corpus
What Happens If You Ignore These?
- Starting late means you need to invest significantly more each month to reach the same corpus — a 10-year delay can triple the required SIP
- Relying solely on EPF and PPF without equity exposure may leave your corpus short due to returns barely beating inflation
- Ignoring healthcare inflation can lead to a corpus shortfall of ₹30–50 lakh over a 25-year retirement
- Without a planned corpus, you may have to depend on children or compromise your lifestyle in retirement
- Underestimating inflation means your retirement savings run out years before planned
Smart Tips
- Start your SIP as early as possible — even ₹5,000/month from age 25 can grow to over ₹1 crore by 60 at 12% returns
- Use NPS for the additional ₹50,000 tax deduction under Section 80CCD(1B) and benefit from long-term equity exposure
- Review and increase your SIP amount by 10% every year to keep pace with salary growth and inflation
- Maintain a separate emergency fund of 6–12 months' expenses so you never dip into your retirement corpus
- Consider a mix of equity (for growth) and debt (for stability) based on your age — shift more to debt as you approach retirement
- Buy adequate health insurance (at least ₹10–20 lakh cover) well before retirement to lock in lower premiums
Frequently Asked Questions
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