Retirement calculator
Retirement needs a sum large enough to pay your monthly expenses, rising with prices, for as long as retirement lasts, while what is left keeps earning.
The sum needed at retirement for your expenses, and the SIP that builds it
- Your savings
- ₹1,49,79,961
- Built by the SIP
- ₹6,13,28,218
- Sum needed at retirement
- ₹7,63,08,179
- Monthly SIP from today
- ₹17,374
- Monthly expenses when you retire
- ₹2,87,175
- Your savings by then
- ₹1,49,79,961
- Saving, 30 years
- Drawing on it, 25 years
What if
Retire 5 years later
₹8,36,73,288
₹73,65,109 higher
Spend ₹10,000 less a month
₹6,10,46,543
₹1,52,61,636 lower
Prices rising 1% slower
₹5,11,17,148
₹2,51,91,031 lower
How it is worked out
Your monthly expenses are inflated to the day you retire. The sum needed then is every month's expense of retirement, each rising with inflation, discounted at the return the sum earns after retirement.
Your savings so far grow at the return before retirement; the monthly SIP closes the gap, worked out as on the goal calculator.
About retirement calculator
The retirement calculator gives the sum needed on the day of retirement to pay monthly expenses that rise with inflation until a chosen age, and the monthly SIP that would build it from today's age and savings.
Inputs
The calculator takes current age, retirement age, the age the plan runs to, monthly expenses in today's money, savings so far, inflation a year, the return expected before retiring and the return expected after retiring. Rates are annual and are held constant for the whole period.
Formula
First, today's monthly expenses are grown to the retirement date: expenses today multiplied by (1 + inflation) for each year until retirement. Second, the sum needed is the present value of every monthly expense from retirement to the plan age, each one rising with inflation, discounted at the return after retiring. Monthly rates are the yearly rates divided by 12, and each month's expense is paid at its start. Present value means what a future payment is worth on the retirement date.
Savings so far are grown at the return before retiring. If they fall short of the sum needed, the gap is divided into a monthly SIP, a fixed amount invested every month, as on the goal calculator. The page shows the sum needed, the savings' growth, the part the SIP builds and the SIP amount.
The page's opening figures
Take monthly expenses of ₹50,000 today, 6% inflation and 30 years to retirement. The first step gives 50,000 × 1.06 to the power 30, about ₹2,87,000 a month at retirement, nearly six times today's amount. With the page's other opening figures (age 30, retiring at 60, plan to 85, savings of ₹5,00,000, 12% before and 7% after retiring), the sum needed is ₹7,63,08,179. The savings grow to ₹1,49,79,961, and a monthly SIP of ₹17,374 builds the rest. A longer retirement, a higher inflation rate or a lower return after retiring each raise it.
What-if rows
Below the result, the page reruns the calculation with one input changed: retiring five years later, spending ₹10,000 a month less, and inflation one percentage point lower. Each row shows the new sum needed and how far it moves from the base figure.
What is not modelled
Taxes, changes in rates over time, medical costs that rise faster than general prices, pensions, rental income and one-time expenses are not modelled. Every figure follows from the inputs entered; none is a forecast of returns or prices.