Retirement corpus calculator: how much do you need?
This calculator estimates the savings you need on the day you retire to fund your spending until a cautious end age, and the monthly saving required to close any gap.
How to use this calculator
- Enter your age, your planned retirement age and an end age you want to plan for.
- Enter today's monthly spending and an inflation rate.
- Enter the returns you expect before and after retirement, and your savings so far.
- Read the corpus needed, the shortfall and the monthly saving.
Worked examples
Example 1
Age 32, retire at 55, plan to 90, spending ₹60,000 a month, 6% inflation, 10% before and 7% after retirement, ₹15,00,000 saved.
You enter
| Your age now | 32 |
|---|---|
| Planned retirement age | 55 |
| Plan until age | 90 |
| Monthly spending today | ₹60,000 |
| Inflation (per year) | 6% |
| Return before retirement (per year) | 10% |
| Return after retirement (per year) | 7% |
| Retirement savings so far | ₹15,00,000 |
You get
| Yearly spending in the first year of retirement | ₹27,50,220 |
|---|---|
| Corpus needed at retirement | ₹8,24,25,576 |
| Your savings grown to then | ₹1,34,31,454 |
| Shortfall | ₹6,89,94,123 |
| Monthly saving needed to close it | ₹64,215 |
Example 2
Retiring a little later, at 60.
You enter
| Your age now | 32 |
|---|---|
| Planned retirement age | 60 |
| Plan until age | 90 |
| Monthly spending today | ₹60,000 |
| Inflation (per year) | 6% |
| Return before retirement (per year) | 10% |
| Return after retirement (per year) | 7% |
| Retirement savings so far | ₹15,00,000 |
You get
| Yearly spending in the first year of retirement | ₹36,80,414 |
|---|---|
| Corpus needed at retirement | ₹9,66,76,652 |
| Your savings grown to then | ₹2,16,31,490 |
| Shortfall | ₹7,50,45,161 |
| Monthly saving needed to close it | ₹40,656 |
How it works
Your spending is raised by inflation until retirement and every year after. The corpus is the amount that, earning the post-retirement return, pays those rising amounts until the end age.
It does not model taxes, major health costs, or living beyond the end age. Keep a margin, and review every few years.
Formula
Corpus = first-year retirement spending x (1 - q^n) / (1 - q), with q = (1 + inflation) / (1 + post-retirement return) and n the years in retirement.
Common questions
What end age should I use?
A cautious one, such as 90.
Is the result in today's money?
Corpus is in future rupees; the first-year spending shows the inflated figure.
What if returns are lower?
Rerun with lower returns; the needed corpus rises.
Learn more
Read the lesson Goals and time horizons on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.