How the retirement calculator works
- Expenses at retirement. Today’s monthly expenses grow at the inflation rate until you retire.
- Corpus needed. The amount that, earning the post-retirement return, pays those expenses every month until the age you plan for, with expenses rising by inflation every year.
- Your savings. What you have already saved grows at the pre-retirement return.
- Monthly SIP. The gap between the two is covered by a monthly SIP from now until you retire.
The formulas
The corpus is the present value, at retirement, of every month’s expenses until the planned age. A SIP of S a month for n months at a monthly rate i grows to S × [((1 + i)n − 1) ÷ i] × (1 + i), and the calculator solves that for S. Monthly rates are the ones that compound to the annual rates you enter, as in the SIP calculator.
Worked example
You are 30, plan to retire at 60 and plan for money to last until 85. Your household spends ₹50,000 a month, you expect 6% inflation, 12% a year before retirement and 7% after, and you have ₹5 lakh saved.
- At 60, the same lifestyle costs about ₹2,87,175 a month.
- To pay that, rising 6% a year, for 25 years, you need about ₹7.48 crore at 60.
- Your ₹5 lakh grows to about ₹1.50 crore, leaving a gap of about ₹5.98 crore.
- A SIP of about ₹19,418 a month for 30 years closes it.
Wait five years and start at 35, and the SIP rises to about ₹27,846 a month, 43% more, for the same retirement.
Why the corpus looks so large
The crore figures come from two things working together. Thirty years of 6% inflation makes everything about 5.7 times as expensive, and the money then has to last 25 more years while prices keep rising. That is why the inflation calculator matters for any goal this far away. In today’s rupees, ₹7.48 crore at 60 is about ₹1.3 crore.
Ways to close the gap
- Step up the SIP. Raising it 10% a year with your salary lets you start much lower. Try it in the step-up SIP calculator.
- Count your EPF and NPS. Project them with the EPF calculator and the NPS calculator and add them to current savings.
- Plan the drawdown. Once retired, a systematic withdrawal from a fund can pay a monthly income; see the SWP calculator.
- Use safe schemes in retirement. The Senior Citizens Savings Scheme pays a fixed quarterly income backed by the government.
These figures are estimates based on the returns and inflation you enter. Real returns vary from year to year, so review the plan every few years.
Frequently asked questions
How much money do I need to retire in India?
It depends on your expenses, not your salary. A common check is 25 to 30 times your yearly expenses at the time you retire, but inflation after retirement and a long life can push it higher. This calculator works it out month by month: expenses keep rising with inflation through retirement, and the corpus earns a return while you draw it down.
What inflation rate should I assume?
Retail inflation in India has averaged around 5–6% a year over the long run, and health and education costs usually rise faster. 6% is a sensible default for household expenses. Try 7% as well to see how sensitive the plan is.
Why is the return after retirement lower?
Once you retire, you need the money soon and cannot wait out a market fall, so most of the corpus usually moves into safer options such as FDs, the Senior Citizens Savings Scheme, debt funds and annuities. These earn less than equity, so 6–8% is a more realistic assumption than the 10–12% used for long-term equity SIPs.
Should I include EPF, PPF and NPS in my current savings?
Yes, include everything you have set aside only for retirement: EPF, PPF, NPS and investments you will not touch before then. Leave out your house, an emergency fund and money kept for other goals such as a child’s education.
What if I cannot afford the SIP the calculator shows?
Start with what you can and raise it every year with your salary; a step-up SIP closes much of the gap. You can also plan to retire a little later, cut planned expenses, or count a pension or rental income that will cover part of your expenses.
Sources
- MoSPI – consumer price index (inflation)
- AMFI – Association of Mutual Funds in India (investor corner)
- PFRDA – National Pension System
Last updated 13 October 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.