Translate today’s retirement expenses into an inflation-adjusted target. The calculator estimates the corpus implied by an initial withdrawal-rate shortcut, projects current savings, and calculates a monthly investment for the remaining gap.
What this retirement calculator shows
- Estimated monthly expenses at retirement.
- Required corpus at the selected withdrawal rate.
- Projected value of current retirement savings.
- Remaining corpus gap and monthly investment estimate.
Calculation method
Future monthly expenses are calculated as:
Retirement corpus formulas
- Future expenses = current expenses x (1 + inflation rate)^years
- Required corpus = future annual expenses / withdrawal rate
Current retirement savings compound at the entered pre-retirement return. If they do not meet the target, the monthly investment is the ordinary-annuity payment required to close the gap over the remaining months.
Use expenses that are likely to continue after retirement. Remove temporary costs that end beforehand, then separately allow for health care, housing maintenance, dependants, travel, and large one-time goals.
Why this is a planning shortcut
A constant initial withdrawal rate is not guaranteed to sustain a portfolio. The calculator does not model retirement duration, post-retirement asset allocation, return volatility, sequence-of-returns risk, taxes, fees, pension income, annuity income, or changing expenses.
The same nominal return is used to project current savings and required monthly investments before retirement. Test a lower return and higher inflation combination. A plan that works only under optimistic inputs has little margin for error.
Common questions
Is 4% always a safe withdrawal rate in India?
No. It is a scenario input, not a universal rule. Longevity, valuation, inflation, taxes, asset mix, and poor early returns can materially change a sustainable rate.
Should I include my home in current retirement savings?
Include only assets you genuinely plan to use for retirement spending. An occupied home does not fund withdrawals unless you plan to sell, downsize, rent, or borrow against it.
Why is the target much higher than current annual expenses?
The tool first inflates expenses until retirement, annualises that future amount, and divides it by the selected withdrawal rate.
More calculators
Use the NPS retirement calculator to model NPS accumulation and annuity allocation, the EPF maturity calculator for payroll contributions, or the inflation calculator to isolate purchasing-power change.
