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Retirement corpus calculator
How much you need at retirement and the monthly SIP to get there.
Quick answer
A retirement corpus is the sum needed at retirement to pay your expenses, raised by inflation, for the years you expect to live. Formula: Expenses at retirement = today’s yearly expenses × (1 + inflation)^years to go. With ₹50,000 of expenses today, 6% inflation, 25 years to go and 25 years of retirement, you need about ₹5.19 crore.
Read the guide: How a step-up SIP works, and how much extra it earns
Corpus needed at retirement
₹5,19,11,228
- Monthly SIP to reach it
- ₹38,801
- Yearly expenses in the first retirement year
- ₹25,75,122
- Your current savings, grown to retirement
- ₹0
A planning estimate. It does not include tax, pensions, rental income or changes in lifestyle.
How is a retirement corpus calculated?
The calculator first grows today’s expenses by inflation to the day you retire, then works out the pot that can pay a rising income for the rest of your life.
It then divides the gap between that pot and your current savings by the growth factor of a monthly SIP.
Small changes in inflation and post-retirement return move the answer a lot, so test a few settings.
What is the formula for a retirement corpus?
- Expenses at retirement = today’s yearly expenses × (1 + inflation)^years to go
- Corpus = expenses × (1 − q^N) ÷ (1 − q), where q = (1 + inflation) ÷ (1 + return after retirement) and N = years in retirement
- SIP needed = (corpus − savings grown) ÷ SIP factor, using the return before retirement
Can you show a worked example of a retirement corpus?
₹50,000 a month today at 6% inflation for 25 years becomes ₹25,75,122 a year at 60. Funding 25 years of that with an 8% return takes a corpus of ₹5,19,11,228.
What retirement corpus do I need?
For someone aged 35 who retires at 60 and plans to 85, with 6% inflation, 10% return before and 8% after retirement.
| Monthly expenses today | Corpus needed at 60 | Monthly SIP to build it |
|---|---|---|
| ₹30,000 | ₹3,11,46,737 | ₹23,280 |
| ₹50,000 | ₹5,19,11,228 | ₹38,801 |
| ₹75,000 | ₹7,78,66,841 | ₹58,201 |
| ₹1,00,000 | ₹10,38,22,455 | ₹77,602 |
Common questions
How long should I plan to live?
Many planners use 85 to 95 to be safe. Running out of money is worse than leaving some behind.
Why is the corpus so big?
Inflation makes your future expenses much larger than today’s, and the pot must last for decades.
Should I count the EPF, NPS or a pension?
Yes: subtract what they will give from your expenses, or add their value to the savings box.
What return should I assume after retirement?
Retirees usually move to safer assets, so a lower return than before retirement is normal. Test a few values.