What is the Retirement Calculator?
A retirement calculator estimates the corpus you'll need at retirement to maintain your current lifestyle for the rest of your life, accounting for inflation, expected returns and post-retirement years.
Without inflation adjustment, retirement planning is dangerously optimistic — ₹50,000/month today is worth less than ₹15,000 in 30 years at 6% inflation.
Formula
Required corpus = Annual expense × ((1 − (1 + g)ⁿ / (1 + r)ⁿ) / (r − g))
- Annual expense — Today's yearly expense × inflation factor at retirement
- r — Post-retirement expected return
- g — Expected inflation
- n — Years in retirement
Step-by-step example
Setup: ₹50,000/month expense today, retire in 30 yrs, live 25 yrs more, 6% inflation, 8% post-retirement return.
- Future monthly need = 50,000 × 1.06³⁰ ≈ ₹2,87,000
- Annual = ₹34.4 lakh
- Corpus needed ≈ ₹6.5 crore
Answer: Required corpus ≈ ₹6.5 Cr at age 60
Frequently asked questions
What's the safe withdrawal rate?
Globally 4% is the rule of thumb; in India 5–6% is reasonable if you stay invested in equity-heavy hybrid funds.