Retirement Corpus Calculator
Find the corpus you need to retire and cover your expenses.
Estimate assuming expenses rise with inflation and the corpus earns a real return.
What Is a Retirement Corpus
Your retirement corpus is the total lump sum you need to have saved by the time you retire so that it can fund your living expenses for the rest of your life without a regular salary. The right number depends on your monthly expenses, the number of years you expect to spend in retirement, and crucially, inflation, which steadily raises the cost of living.
The danger of underestimating is real: a corpus that looks generous today can fall short decades later because ₹50,000 of monthly expenses might cost over ₹1,00,000 in twenty years at typical Indian inflation. A good calculator accounts for both the growth of your corpus during retirement and the rising expenses you will face.
The 25x Rule and the 4% Idea
A popular shortcut from retirement planning is the 25x rule: aim for a corpus equal to about 25 times your expected annual expenses at retirement.
Corpus needed ≈ 25 × Annual expenses at retirement
This comes from the 4% rule, the idea that if you withdraw roughly 4% of your corpus in the first year and adjust withdrawals for inflation thereafter, the money has historically had a good chance of lasting around 30 years. Since 1 ÷ 0.04 = 25, the two ideas are the same thing viewed from different angles.
These rules originated from studies on Western markets, so treat them as a starting reference rather than a guarantee. Indian inflation and returns differ, and many planners suggest a more conservative withdrawal rate or a larger multiple for added safety.
A Worked Example in Rupees
Suppose Arjun, aged 35, spends ₹50,000 a month today and plans to retire at 60, giving 25 years until retirement. Assume 6% inflation.
First, project today's expenses to retirement: ₹50,000 × (1.06)^25 ≈ ₹2,14,000 per month, or about ₹25.7 lakh a year. Applying the 25x rule:
Corpus ≈ 25 × ₹25.7 lakh ≈ ₹6.4 crore
So Arjun would target a corpus of roughly ₹6.4 crore at age 60 to sustain his lifestyle. A more detailed calculation also factors in post-retirement returns and the number of retirement years; the calculator above does this, letting you enter your expenses, inflation, retirement age and life expectancy for a personalised figure.
Building Your Corpus and Staying Safe
Once you know your target, work backwards to a monthly investment using SIPs in a diversified mix of equity and debt suited to your age and risk profile. Starting early is powerful because compounding does most of the heavy lifting over long horizons. Use vehicles like EPF, PPF, NPS and equity mutual funds, keeping the tax treatment of each in mind.
Build in a margin of safety: assume slightly higher inflation, plan for a longer life expectancy, and keep a separate health and emergency fund so a medical event does not eat into your retirement corpus. Treat the 25x and 4% rules and all return assumptions as illustrative, review your plan every few years, and consider guidance from a SEBI-registered adviser.
Frequently Asked Questions
The 25x rule suggests saving roughly 25 times your expected annual expenses at retirement. It is derived from the 4% withdrawal rule, since withdrawing 4% a year corresponds to a corpus of 25 times annual spending.
The 4% rule comes from studies on Western markets with different inflation and return patterns. In India, where inflation is often higher, many planners prefer a more conservative withdrawal rate or a larger corpus for safety. Use it as a guide, not a guarantee.
Inflation steadily raises the cost of living, so the expenses you have today will be much higher in future. At 6% inflation, costs roughly double in about 12 years, so your corpus must be sized against future expenses, not today's.
Plan for a long life to avoid outliving your money. With improving life expectancy, many people plan for 25 to 30 years or more in retirement. It is safer to overestimate this number than underestimate it.
That depends on your target corpus, years to retirement and expected returns. Starting early dramatically reduces the monthly amount needed because of compounding. Use a SIP calculator alongside this one to find the figure.
Yes. Your retirement corpus includes all dedicated retirement savings such as EPF, PPF, NPS and equity mutual funds. Total their expected future values and compare against your target to see if you are on track.