Retirement Corpus Calculator
6,81,82,471
6,66,84,475
18,891/mo
Retirement Nest Egg Build Progression
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Retirement Annuity Formula
Uses the present value of an annuity formula based on your expected post-retirement real rate of return (r).
Worked Example: 25 Years of Retirement
- Corpus = ₹12,00,000 × [1 - (1.02)^-25] / 0.02 = **₹2.34 Crores**
The Retirement Number Nobody Tells You: Why ₹2 Crore Is NOT Enough
When someone says "I want ₹2 Crores for retirement," they usually mean ₹2 Crores in today's money. But they won't be retiring today. If retirement is 20 years away and inflation runs at 6% per year, the purchasing power of ₹2 Crores in 2046 is equivalent to just ₹62 Lakhs today. That's not a retirement. That's a few years of survival.
The number that actually matters is your inflation-adjusted retirement corpus. Start with your current monthly expenses — say ₹50,000. At 6% inflation over 25 years, that becomes ₹2.15 Lakhs/month at retirement. Over a 30-year retirement horizon, factoring in a 3.5% real withdrawal rate, you need approximately ₹5.5–6 Crores. Not ₹2 Crores. Not ₹3 Crores. Nearly six.
This is why starting early is not just advice — it's arithmetic. A 25-year-old needs a ₹12,000/month SIP at 12% returns to reach ₹5.5 Crores by 55. A 35-year-old needs ₹38,000/month for the same target. A 45-year-old? ₹1.4 Lakhs/month. The cost of each delayed year is not linear — it's exponential.
Don't guess your retirement number. Calculate it. Factor in inflation (6–7%), healthcare inflation (10–12%), life expectancy (plan for 85–90), and post-retirement taxes. Then work backward to your monthly SIP. The number might shock you — but it's better to be shocked at 30 than broke at 70.
Frequently Asked Questions
How much retirement corpus do I need in India?
It depends on your monthly expenses, expected retirement age, and life expectancy. A common starting point: if you spend ₹50,000/month today, at 6% inflation over 25 years, you'll need roughly ₹2.15 Lakhs/month at retirement. Your corpus must generate this through withdrawals and interest.
Should I include my house value in my retirement corpus?
No. Your primary residence provides shelter, not income. Unless you plan to sell it, downsize, or take a reverse mortgage, exclude it from your retirement corpus calculation. Focus on liquid, income-generating assets.
What is the biggest mistake people make in retirement planning?
Underestimating inflation and longevity. Most people plan for retirement lasting 15–20 years, but with improving healthcare, 25–35 years is increasingly common. At 6% inflation, your expenses double every 12 years. Plan conservatively—being over-prepared is far better than running out.
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