Find out how big a corpus you need to retire comfortably — and the monthly saving that gets you there.
Also searched as: retirement planning calculator · retirement date calculator · sbi retirement plan
How much do I need to retire?
- Your expenses today are grown by inflation to the year you retire.
- The corpus must fund those (still inflating) expenses from retirement until the age you plan for, while earning a post-retirement return.
- Existing savings are grown to retirement and subtracted; the gap becomes a monthly SIP target.
Example
₹50,000/month expenses at 30, retiring at 60, living to 85, 6% inflation, 12% return before and 7% after: expenses at 60 ≈ ₹2.87 lakh/month; corpus needed ≈ ₹7.2 crore; monthly SIP from now ≈ ₹20,000.
Assumptions that matter most
- Inflation is the big one — 6% doubles costs every 12 years.
- Years in retirement: plan to at least 85; longer if your family lives long.
- Post-retirement return should be conservative (6–8%), since you cannot afford big losses then.
Turn the SIP target into a plan with the SIP calculator; draw it down later with the SWP calculator; add NPS for tax benefits.
How to use the retirement calculator
- Enter your current age and the age you want to retire (60 is typical; 55 or 50 for early retirement).
- Enter your current monthly expenses — not income. Include rent/EMI, food, medical, travel, help at home.
- Set expected inflation (6% is India's long-run average) and the return you expect before retirement (10–12% equity-heavy) and after (7–8% conservative).
- Enter what you have already saved; the tool shows the corpus you need and the monthly saving to reach it.
Step-by-step: 35-year-old spending ₹50,000 a month, retiring at 60
- Inflate today's expense for 25 years: 50,000 × 1.0625 = ₹2,14,594 a month at age 60.
- Yearly need at 60: 2,14,594 × 12 = ₹25.75 lakh.
- For 25 retirement years, with the corpus earning 7% while expenses grow 6%, the corpus needed is about ₹5.4–6.4 crore (a quick upper estimate is 25 × yearly need = ₹6.44 crore).
- Monthly saving to build ₹6 crore in 25 years at 12%: about ₹32,000 a month (less if you raise the SIP every year with your salary).
The number looks scary only because of inflation; in today's money ₹6 crore at 60 is worth about ₹1.4 crore.
Worked examples
| Situation | Working | Answer |
|---|
| Age 25, ₹30,000 expenses, retire at 60 | 35 years of 6% inflation, 12% returns | corpus ≈ ₹5.8 crore; SIP ≈ ₹9,000/month |
| Age 45, ₹80,000 expenses, retire at 60 | 15 years | corpus ≈ ₹4.8 crore; SIP ≈ ₹95,000/month — start early! |
| Already have ₹50 lakh at 40, need ₹4 crore at 60 | 50 lakh grows to ₹4.8 crore at 12% | on track without new savings |
Tips and common mistakes
- EPF, PPF, NPS and gratuity are part of your corpus — add them under 'already saved'. Project EPF with the NPS and PPF calculators.
- Plan for 85–90, not 75; medical inflation runs at 10–12%, so budget health insurance separately.
- After retirement, keep 2–3 years of expenses in FDs/liquid funds and the rest in a mix that still beats inflation; the SWP Calculator shows how long a corpus lasts.
- Re-run this once a year — a salary hike should mean a higher SIP, not just a higher lifestyle.
Frequently asked questions
Is ₹1 crore enough to retire in India?
For a 30-year-old spending ₹50,000 a month today, no — inflation turns that into about ₹2.9 lakh a month by 60, needing roughly ₹7 crore. ₹1 crore may suffice for someone retiring soon with modest expenses.
What inflation rate should I assume?
6% is a common long-run assumption for India; use 7% to be safe, especially if healthcare is a large part of your expenses.
How much should I save for retirement each month?
Enter your numbers above. As a thumb rule, saving 15–20% of income from your 20s, rising with each pay hike, usually gets you there.
How much corpus do I need to retire in India?
A rough rule is 25–30 times your yearly expenses at retirement, after inflating today's expenses to that date. ₹50,000 a month today becomes about ₹2.15 lakh a month in 25 years at 6% inflation, needing roughly ₹6 crore.