Independence calculator
Retirement Calculator
How big a corpus will you need to retire — and what would it take to get there? This retirement calculator inflates today’s expenses to retirement, then shows the corpus and the monthly investment to reach it.
- Invest / month (30 yrs)
- ₹24,352
- You invest in total
- ₹87,66,744
- Market growth
- ₹6,01,55,150
- Corpus needed
- ₹6,89,21,894
For illustration only. It assumes constant returns and inflation and uses the 4% withdrawal guideline (corpus ≈ 25× annual expenses); real outcomes vary and returns are not guaranteed. This is not investment advice.
How this retirement calculator works
It works in two steps. First it inflates your current monthly expenses to what they will be at retirement, and sizes a corpus that could fund them using the 4% withdrawal guideline (corpus ≈ 25 × annual expenses at retirement):
corpus = expense × (1 + inflation)years × 12 × 25
Then it solves the SIP formula for the monthly investment needed to build that corpus by your retirement age, at your expected return. The two numbers — the target and the monthly saving — are what actually drive a plan.
A worked example
A 30-year-old retiring at 60, spending ₹40,000 a month today, at 6% inflation and an 11% return, needs roughly a ₹6.9 crore corpus — about ₹24,000 a month invested from now. Most of that corpus is market growth, not your contributions: that is the reward for starting early.
Why starting early wins
Push the current-age slider up by even five years and watch the required monthly investment jump — compounding has less time to work, so you must supply more of the corpus yourself. The single biggest lever in retirement planning is time, which is exactly why MoneyGrad nudges the habit of investing a steady amount, early.
Frequently asked questions
- What is a retirement calculator?
- A retirement calculator estimates two things: the corpus you may need by the time you retire so your savings can fund your expenses, and the monthly amount you would need to invest from now to build that corpus. It turns a vague worry into two concrete numbers.
- How is the retirement corpus calculated?
- The calculator inflates your current monthly expenses to what they will be at retirement, then estimates a corpus that could sustain those expenses using the widely-cited 4% withdrawal guideline (corpus ≈ 25 × your annual expenses at retirement). It then works out the monthly investment needed to reach that corpus at your expected return.
- What is the 4% rule?
- The 4% rule is a rule of thumb suggesting you can withdraw about 4% of your retirement corpus in the first year, adjusting for inflation thereafter, with a reasonable chance the money lasts. It is a planning guideline, not a guarantee, and Indian inflation and rates may warrant a more conservative figure.
- Why does inflation matter so much?
- Because it quietly multiplies your future costs. At 6% inflation, expenses roughly triple over 20 years, so the monthly budget you live on today will need far more rupees at retirement. The calculator inflates your expenses so the target corpus reflects tomorrow’s prices, not today’s.
- Are these retirement figures guaranteed?
- No. The result depends on assumptions — future returns, inflation and how long you live — none of which are certain, and investment returns are not guaranteed. Use it to size the problem and revisit it as your life changes; it is not investment advice.