How this calculator works (and why it's more honest than most)
Many retirement calculators simply multiply your future annual expenses by the number of retirement years — ignoring that your corpus keeps earning returns while you withdraw, and that your expenses keep rising with inflation. This calculator uses the real-rate annuity method: it inflates today's expenses to your retirement date, then computes the corpus whose inflation-adjusted withdrawals last exactly through your planned years, given a conservative post-retirement return.
Worked example: 30-year-old spending ₹50,000/month
Retiring at 60, planning to 85, with 6% inflation and 7% post-retirement returns: today's ₹50,000/month becomes about ₹2.87 lakh/month at 60. Funding 25 inflation-rising years at a ~0.94% real rate needs a corpus of roughly ₹7.7 crore. At 12% pre-retirement returns over 30 years, that's a SIP of about ₹22,000/month — startable today. Wait until 40 and the same goal needs roughly ₹55,000/month. Time, not income, is the biggest lever.
Frequently asked questions
Why does this show a bigger corpus than other calculators?
Because it keeps your withdrawals rising with inflation through every retirement year, not just until retirement day. Calculators that freeze expenses at the retirement-date amount quietly assume your cost of living stops growing at 60 — it doesn't.
What post-retirement return should I use?
Be conservative — 6-8%. Retirement portfolios shift toward debt and FDs for safety, so assuming equity-like 12% after retiring is a common and dangerous mistake.
Is 6% the right inflation assumption?
It's a reasonable long-run figure for India, but personal inflation — especially healthcare, which dominates late-life spending — often runs higher. Testing at 7% gives a useful safety margin.
Does this include EPF, NPS or pension income?
Add their expected value at retirement into "existing savings" (or reduce your monthly expense by any guaranteed pension). The calculator nets existing savings' growth against the corpus before computing the SIP.
What if the required SIP is more than I can invest?
Adjust the levers in order of power: retire a few years later, trim the expense assumption, or step up the SIP annually with salary growth (a 10% yearly step-up dramatically lowers the starting amount). Avoid fixing it by assuming higher returns.
Sources & methodology
Formulas on this page are shown in full above and verified against official sources.
Results are estimates for education and planning — not financial, tax or investment advice. Verify important decisions with a qualified professional.