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A retirement calculator is a free online tool that helps individuals estimate the corpus required for a comfortable retirement and determine how much they need to save monthly to achieve their retirement goals. Retirement planning has become essential in today's era of increasing life expectancy and rising living costs, making it crucial for everyone to plan their financial future systematically.
While a retirement calculator provides an approximate retirement corpus and monthly investment amount, actual returns depend on factors such as market conditions, investment choices, and economic changes over time.
A retirement planning calculator simplifies long-term financial planning by offering a clear projection of your retirement needs and the investment strategy required to achieve them.
A retirement planning calculator works on the following key formulas:
Future Monthly Expense = Current Monthly Expense × (1 + Inflation Rate)^Years to Retirement
Retirement Corpus = Future Monthly Expense × 12 × Post-Retirement Years
Monthly Investment = Retirement Corpus / [{(1 + Return Rate)^Years to Retirement - 1} / Return Rate]
Where –
Example:
If you are 25 years old, planning to retire at 60, with current monthly expenses of ₹30,000, expecting 12% annual returns and 6% inflation:
Years to retirement = 60 - 25 = 35 years
Future monthly expense = ₹30,000 × (1.06)^35 = ₹2,30,455
If life expectancy is 80 years, post-retirement years = 80 - 60 = 20 years
Required retirement corpus = ₹2,30,455 × 12 × 20 = ₹5,53,09,200
Monthly investment required = ₹16,891
Since retirement planning involves long-term investments subject to market fluctuations, actual returns and inflation rates may vary from projections.
Our Retirement Calculator is a comprehensive tool that helps individuals make informed decisions about their retirement planning and investment strategy.
Use our retirement calculator to plan your financial future effectively and ensure a comfortable retirement. Whether you're in your 20s or 40s, it's never too early or too late to start planning for retirement. The power of compounding works best when you start early and invest consistently.
Try our Retirement Calculator now and take the first step towards financial independence!