Retirement Corpus Calculator — How Much Money Do You Need to Retire in India (2025)
A retirement corpus is the total sum of money you need to support yourself after you stop working. Our calculator helps you move beyond a simple number to create a complete plan for a secure retirement.
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Retirement Corpus Calculator
Default assumptions & why we chose them
This calculator uses standard financial formulas and default assumptions based on long-term Indian market data. You can adjust these inputs to match your expectations.
- Inflation: 6% p.a. - This is a conservative long-term average for India.
- Pre-retirement returns: 12% p.a. - This assumes a diversified portfolio with a significant equity component (e.g., mutual funds).
- Post-retirement returns: 7% p.a. - This assumes a more conservative, capital-preserving portfolio after you retire.
- Deposits: monthly, made at the start of each month (annuity-due), which slightly improves returns over end-of-month deposits.
- Life expectancy: 85 years.
How do you calculate retirement corpus?
We use standard financial formulas to give you an accurate projection. Here’s a simplified look at how we do it:
Future Value of Your Expenses at Retirement
We first calculate how much your current monthly expenses will grow to by the time you retire, using the inflation rate you provide. The formula is: Future Expense = Present Expense × (1 + Inflation Rate) ^ Years to Retirement.
Required Corpus at Retirement (PV of Annuity)
Next, we calculate the total lump sum you'll need on the day you retire. This is the amount that, when invested, will generate enough income to cover your expenses for the rest of your life. We use the Present Value of an annuity formula for this.
Required SIP Calculation
Finally, we determine the monthly Systematic Investment Plan (SIP) needed to bridge the gap between your current savings and your target corpus. We calculate the future value of your existing savings and subtract it from the required corpus to find the shortfall. The SIP is calculated using the future value of an annuity due formula, assuming deposits are made at the start of each month.
What inputs you must provide & why they matter
To get an accurate result, you need to provide some key details. Here’s what each one means for your plan:
- Your Current & Retirement Age: This defines your investment horizon. The longer you have, the more the power of compounding can work for you, meaning you can start with smaller investments.
- Your Current Monthly Expenses: This is the foundation of your retirement plan. Be realistic about what you spend today to get an accurate picture of what you'll need tomorrow.
- Your Current Savings: This is your head start! Any money you've already saved in EPF, PPF, Mutual Funds, or other investments reduces the amount you'll need to save in the future.
- Inflation Rate: This is the silent wealth killer. Inflation reduces the purchasing power of your money over time. A higher inflation rate means you'll need a much larger corpus.
- Pre-Retirement Returns: This is the growth rate you expect on your investments while you're still working. A higher return means your money works harder for you, and you can reach your goal with smaller SIPs.
- Post-Retirement Returns: This is the return you expect on your corpus after you retire. We assume a more conservative, capital-preserving portfolio here.
Worked Examples — How Much Corpus Do You Need?
Example 1: For ₹50,000 monthly expenses (at age 30)
Our Calculation: To maintain your lifestyle, you'll need a retirement corpus of approximately ₹3.28 Crore. To reach this goal, you should start a monthly SIP of ₹18,250.
Example 2: For ₹1 Lakh monthly expenses (at age 35)
Our Calculation: You'll need a corpus of around ₹4.79 Crore. To achieve this, you should start a monthly SIP of ₹37,842.
Example 3: For ₹30,000 monthly expenses (at age 25)
Our Calculation: Your target corpus is ₹3.04 Crore. Thanks to your long investment horizon, you only need to start a monthly SIP of ₹7,725 to get there.
Sensitivity Analysis: How Assumptions Change Your Goal
Small changes in your assumptions can have a huge impact on your final corpus. This table shows how your required corpus and SIP change with slight adjustments to inflation and return rates.
| Scenario | Required Corpus | Monthly SIP |
|---|---|---|
| Base Case | ₹7.64 Cr | ₹17,408 |
| +1% Inflation | ₹11.42 Cr | ₹28,104 |
| -1% Inflation | ₹5.12 Cr | ₹10,260 |
| +2% Pre-Retirement Returns | ₹7.64 Cr | ₹9,169 |
| -2% Pre-Retirement Returns | ₹7.64 Cr | ₹29,703 |
How to build your retirement corpus (investment strategies)
Choosing Your Investment Path: SIP vs. Lump Sum
A Systematic Investment Plan (SIP) is the most disciplined approach. You invest a fixed amount regularly (e.g., monthly), which helps you average out market highs and lows (rupee-cost averaging) and benefit from compounding. It's perfect for building wealth steadily over time. For even faster growth, consider a Step-up SIP, where you increase your monthly investment annually, usually in line with your salary hike (e.g., by 10%).
Asset Allocation by Age
Your investment strategy shouldn't be static. As you get closer to retirement, you should gradually shift from high-risk, high-return assets to safer options to protect your capital.
- In Your 20s & 30s: Be aggressive. A portfolio with 70-80% in equities (like mutual funds) can generate higher returns over the long term.
- In Your 40s: Start balancing your risk. A 60:40 split between equity and debt is a common strategy.
- In Your 50s and Beyond: It's time to preserve your capital. Shift your portfolio to be debt-heavy (70-80% in fixed-income instruments).
How PPF, NPS, & EPF Fit Into Your Plan
These are the foundational pillars of retirement planning in India. Your current savings in these instruments give you a massive head start. Use them to form the debt/fixed-income portion of your portfolio. Explore our PPF Calculator and NPS Calculator to see how they grow.
Sample SIP Plans to Reach Your Goal
This table shows the approximate monthly SIP required to reach common retirement corpus goals from different starting ages, assuming a 12% annual return.
| Target Corpus | SIP from Age 30 | SIP from Age 40 | SIP from Age 50 |
|---|---|---|---|
| ₹1.00 Cr | ₹2,833 | ₹10,009 | ₹43,041 |
| ₹2.00 Cr | ₹5,666 | ₹20,017 | ₹86,081 |
| ₹5.00 Cr | ₹14,165 | ₹50,043 | ₹2.15 Lakh |
Assuming 12% annual returns and retirement at 60.
How to withdraw from your corpus (de-accumulation)
Building your nest egg is only half the battle. The real challenge is making it last. Here’s how you can create a steady income stream after you retire.
Systematic Withdrawal Plan (SWP)
An SWP allows you to withdraw a fixed amount from your mutual fund investments every month, just like a pension. This is a tax-efficient method because the rest of your corpus remains invested and continues to grow, helping you beat inflation.
Example: With a corpus of ₹2 Crore and a 7% annual return, a monthly SWP of ₹1 lakh could last for over 30 years.
Annuity Plans
An annuity is an insurance product where you pay a lump sum to an insurance company, and they guarantee you a fixed income for life. While this offers immense security, the returns (annuity rates) are often lower than what you might get from an SWP.
Taxes in retirement (India-specific rules)
- Long-Term Capital Gains (LTCG): When you withdraw from equity mutual funds, gains over ₹1 lakh in a financial year are taxed at 10%. Planning your withdrawals strategically can help you minimize this tax.
- Pension Taxation: Your pension income, whether from an annuity or other sources, is generally added to your income and taxed as per your applicable slab rate.
- Special Rule for Returning NRIs (Section 89A): If you are an NRI returning to India, this rule allows you to defer paying tax on your foreign retirement accounts until you actually withdraw the money. This is a significant relief that helps avoid double taxation.
Frequently Asked Questions about Retirement Planning
How do you calculate retirement corpus?
We project your future monthly expenses using inflation, compute the present value (PV) of the annuity you’ll need at retirement, and subtract the future value of existing savings to find the shortfall.
What inflation rate should I use for Indian retirement planning?
Many planners use a long-term default of 5–7% for India; 6% is common. Use higher rates for conservative healthcare or long horizon assumptions.
Can I include EPF, PPF and NPS in my retirement corpus?
Yes — include all liquid and pension assets (EPF, PPF, NPS, mutual funds, bank FD) in your Current Savings input to lower the additional SIP needed.
How much should a 30-year-old save monthly to retire comfortably?
It depends on target corpus and assumptions. As a rough guide, saving ₹15,000–₹25,000/month can build multi-crore corpus by 60 at 10–12% returns. Use the calculator for precise numbers.
Should I invest by SIP or lump sum to reach my retirement goal?
SIP is recommended for disciplined investing and rupee-cost averaging; lump sum can outperform in long bull markets but has higher timing risk. A blended approach works for many.
What is a safe withdrawal rate in India during retirement?
There is no one-size-fits-all; many advisors use a 3–4% initial withdrawal rule (adjusted for inflation). Consider conservative withdrawal rates if longevity or healthcare costs are uncertain.
How do healthcare costs affect the retirement corpus?
Healthcare inflation often exceeds general inflation. Add a dedicated healthcare buffer or model higher inflation for medical costs to avoid underestimating your corpus.
How will taxes impact my retirement withdrawals?
Tax treatment varies by instrument and withdrawal type. EPF/PPF have specific rules; mutual fund withdrawals may attract LTCG tax above thresholds. Plan withdrawals tax-efficiently to preserve corpus.
How long should my retirement corpus last?
Typically planners assume life expectancy of 85–90 years. Use conservative longevity assumptions if family longevity is high or you retire early.
Does the calculator account for post-retirement returns?
Yes — you can set a lower, conservative post-retirement return (e.g., 6–8%) to model how the corpus will be invested and sustain withdrawals.
Can I plan for early retirement (before 60) with this calculator?
Yes — set your desired retirement age earlier and increase the investment horizon and SIP accordingly. Factor in longer post-retirement years and higher healthcare costs.
What is the simplest rule of thumb to estimate a target corpus?
A common rule is 25× your current annual expenses (for a 4% real withdrawal), but use the calculator to refine this with inflation, returns, and existing savings.
Tools & Resources
Conclusion: Your Path to a Secure Retirement
Retirement planning isn't just about hitting a number; it's about building a sustainable financial future you can count on. By using this comprehensive calculator and understanding the key variables that drive your corpus, you can create a realistic and actionable plan. Remember, the key is to start early, invest consistently, and review your plan annually. That's the surest way to a comfortable and stress-free retirement.
Disclaimer
Methodology & Update Log
This calculator uses standard financial formulas for future value (FV) and present value (PV) of annuities to project your retirement corpus and required SIP. All figures are illustrative. Last content update: September 2025. Financial formulas verified against established industry standards.