How the retirement calculator works
- Step 1: Your monthly expenses today are grown at the inflation rate up to your retirement age. ₹50,000 today becomes about ₹2.87 lakh per month after 30 years at 6% inflation.
- Step 2: The corpus needed at retirement is the amount that can pay those inflation-adjusted expenses every year until the age you plan for, while the balance keeps earning the post-retirement return.
- Step 3: Your existing savings are grown at the pre-retirement return and subtracted from the corpus to find the shortfall.
- Step 4: The monthly SIP needed to build the shortfall by your retirement date is calculated with the standard SIP formula.
Example: A 30-year-old spending ₹50,000 per month, retiring at 60 and planning till 85, with 6% inflation, 12% return before retirement and 8% after, needs a corpus of about ₹6.9 crore. Starting from zero, that requires a SIP of roughly ₹22,500 per month, or less with a yearly step up.
Common mistakes in retirement planning
- Ignoring inflation. ₹1 crore sounds like a lot today, but in 25 years it will buy what ₹23 lakh buys now.
- Planning for too few years. With better healthcare, planning till at least 85 is sensible.
- Relying only on EPF and PPF. Their returns barely beat inflation after tax; equity exposure is needed for a 30-year horizon.
- Starting late. The SIP needed at 25 is less than half of what is needed at 35 for the same corpus.
- Withdrawing from retirement funds for other goals like a house or a child’s wedding.
Where to invest for retirement in India
| Option | Expected return | Tax benefit | Best for |
|---|---|---|---|
| Equity mutual funds (SIP) | 11% – 13% | ELSS under 80C | Long-term growth |
| NPS | 9% – 11% | 80C + extra ₹50,000 under 80CCD(1B) | Disciplined, locked savings |
| EPF | 8.25% | 80C | Salaried employees |
| PPF | 7.1% | 80C, tax free maturity | Safe, guaranteed portion |
| SCSS (after 60) | 8.2% | 80C | Regular income after retirement |
Frequently asked questions
How much corpus is enough to retire in India?
A common rule is 25 to 30 times your yearly expenses at the time of retirement. If you will need ₹12 lakh a year, aim for ₹3 to 3.6 crore. The calculator above gives a more precise figure for your inputs.
What return should I assume after retirement?
Use 7% to 8%. After retirement most of the money shifts to safer options like debt funds, SCSS, FDs and a smaller equity portion, so the return is lower than during your working years.
Can I retire early at 45 or 50?
Yes, but the corpus needed is much larger because you have fewer earning years and more retired years. Set the retirement age slider to 50 and see how the required SIP changes.
Should I include my house in retirement savings?
Only if you plan to sell it or take a reverse mortgage. The house you live in does not generate income, so keep it out of the corpus calculation.
Does the calculator include pension or rental income?
Not directly. If you expect ₹20,000 per month from pension or rent, reduce the monthly expense input by that amount in today’s terms.
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View allDisclaimer: This calculator is for information purposes only. Results are estimates based on the inputs you provide and do not guarantee any returns. Please consult a qualified financial advisor before making investment or tax decisions.