Retirement Corpus Calculator
Calculate the exact corpus you need to retire comfortably — based on your current expenses, inflation, and retirement timeline.
RETIREMENT CORPUS REQUIRED
₹8.62 Cr
You have 30 years until retirement. Due to 6% expected inflation, your future monthly expenses will be ₹2.87 L / month.
What is a Retirement Corpus?
A retirement corpus is the total amount of money you need to have saved and invested on the day you retire — large enough to fund your lifestyle for the rest of your life without needing to work again. It is not an arbitrary number; it is a precise calculation based on your current expenses, expected inflation, years in retirement, and the returns your corpus will generate while you withdraw from it.
Most people either guess at this number or seriously underestimate it. The result? Running out of money in their 70s or 80s when earning capacity is gone. This calculator removes all guesswork by computing your exact retirement number from first principles.
Why Most Retirement Plans Fall Short
There are two financial forces quietly working against every retirement plan — and most people do not account for both of them properly:
- Inflation: If your current lifestyle costs ₹60,000 per month today, a sustained 6% annual inflation rate means that same lifestyle will cost approximately ₹2.6 lakhs per month in 25 years. Your retirement corpus must generate this inflated income — not today's lower amount.
- Longer life expectancy: With improving healthcare in India, planning for a 25 to 30 year retirement after age 60 is now the recommended standard. A retirement fund must sustain you to age 85 or beyond, comfortably.
How the Retirement Corpus is Calculated
Our calculator works in three steps:
- Step 1 — Inflation-adjust your expenses: Your current monthly expenses are projected forward to your retirement date using compound inflation. If you plan to retire in 25 years with ₹60,000/month expenses today at 6% inflation, your first-year retirement expense will be approximately ₹2.57 lakhs/month — or ₹30.8 lakhs/year.
- Step 2 — Apply the Safe Withdrawal Rate: Based on the globally studied 4% Rule (from the Trinity Study), a diversified portfolio can sustain 4% annual withdrawals indefinitely, adjusted for inflation. This means you need a corpus equal to 25 times your first-year retirement expense.
- Step 3 — Compute the target corpus: For the above example — ₹30.8 lakhs annual expense x 25 = ₹7.7 Crores required retirement corpus.
How Much Should You Save Monthly to Build This Corpus?
Once you know your target corpus, the next question is: how much do you need to invest each month to reach it? That depends on your investment timeline (years until retirement), the expected annual return on your investments during accumulation, and whether you are making lump-sum investments, monthly SIPs, or a combination.
As a rough benchmark: To build ₹5 Crores in 25 years at a 12% annual return (typical long-term equity fund return), you need to invest approximately ₹25,000 per month via SIP. Use our SIP Calculator alongside this tool for a complete retirement roadmap.
Where:
- Annual Expenses = Your yearly living expenses at retirement (inflation-adjusted)
- 25 = Multiplier from the 4% safe withdrawal rate
- 4% Rule = You can safely withdraw 4% of corpus annually without running out
📝 Worked Example
Current expenses: ₹50,000/month, retire at 60, inflation 6%
Future monthly expense = ₹50,000 × (1.06)²⁵ = ₹2,14,594= Corpus needed ≈ ₹6.44 Cr (₹25,75,128 × 25)