Retirement Corpus Calculator
This calculator estimates the retirement corpus you'll need, by inflating your current expenses to your retirement date, then finding the lump sum that can sustain that (inflation-adjusted) spending for the rest of your life.
Show solution steps
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Formula
Step 1 — inflate today's expense to your retirement date:
Future Monthly Expense = Current Monthly Expense × (1 + inflation)years to retirement
Step 2 — find the present value of a level annuity in real terms, using the real rate of return:
Real Rate = (1 + post-retirement return) / (1 + inflation) − 1
Required Corpus = Annual Expense × [1 − (1 + real rate)−retirement years] / real rate
Worked Example
A 30-year-old planning to retire at 60, spending ₹50,000/month today, expecting 6% inflation, 7% post-retirement returns, and living to 85:
- Monthly expense at retirement (30 years of 6% inflation): well over ₹2,80,000/month
- Required retirement corpus: several crore rupees
This large jump is why retirement planning needs to start early — inflation compounds over decades just as investment returns do.
How to Use
- Enter your current age and planned retirement age.
- Enter your current monthly expenses.
- Enter your expected inflation rate and expected post-retirement investment return.
- Enter your life expectancy (how many years of retirement to plan for).
- Read your projected monthly expense at retirement and the total corpus required.