👴 Retirement Calculator
Plan your retirement with smart investment strategy
| Age | Year | Corpus | Expense |
|---|
Your Retirement Plan: Summary
What Is The Purpose Of Retirement Calculator?
This tool helps you plan for retirement by estimating:
- The corpus (lump sum) needed at retirement to cover your expenses for the rest of your life.
- How much you will actually accumulate based on your current savings and monthly investments.
- Your expected monthly income during retirement.
- The gap between what you need and what you will have, along with suggestions to close that gap.
It’s designed for anyone who wants to visualise their retirement readiness in a few minutes.
Input Parameters (Left Panel)
All inputs can be adjusted with sliders or by typing numbers – the results update instantly.
| Parameter | Description |
|---|---|
| Current Age | Your present age (18–80) |
| Retirement Age | When you plan to stop working (must be > current age, max 90) |
| Life Expectancy | The age until which you want your corpus to last (must be > retirement age, max 100) |
| Current Savings | Lump sum already saved for retirement |
| Monthly Investment | How much you will save every month until retirement |
| Return Before Retirement (%) | Expected annual return on your investments during the saving phase |
| Return After Retirement (%) | Expected annual return on your corpus after retirement (usually lower, e.g., from conservative instruments) |
| Monthly Expenses (Today) | Your current monthly spending (will be inflated to retirement year) |
| Inflation Rate (%) | Annual increase in expenses |
Currency can be switched between INR, USD, EUR, GBP. The calculator auto-detects your location based on browser language.
How the Calculations Work (Core Logic)
1. Future Monthly Expense at Retirement
Your current monthly expense is adjusted for inflation up to the retirement age:
Future Monthly Expense = Current Monthly Expense × (1 + Inflation Rate)^Years to Retirement
2. Required Corpus at Retirement (PV of post-retirement expenses)
After retirement, you will withdraw money each month to cover your inflated expenses. The corpus needed is the present value of those future withdrawals, discounted by the post-retirement return rate.
If r = monthly return after retirement, n = total months in retirement:
Required Corpus = Future Monthly Expense × [1 - (1 + r)^(-n)] / r
3. Estimated Corpus at Retirement (FV of savings + investments)
We grow your current savings and monthly investments using the pre-retirement return rate, compounded monthly.
Let R = monthly return before retirement, m = total months until retirement.
- Future value of current savings =
Current Savings × (1 + R)^m - Future value of monthly investments =
Monthly Investment × [(1 + R)^m - 1] / R × (1 + R)(annuity due – invested at the beginning of each month)
Sum them to get your estimated corpus.
4. Monthly Retirement Income
The estimated corpus is then converted into a monthly income using the same annuity formula in reverse:
Monthly Income = Estimated Corpus × r / [1 - (1 + r)^(-n)]
(where r = monthly post-retirement return, n = months in retirement)
5. Gap Analysis & Additional Monthly Need
- Gap = Required Corpus – Estimated Corpus.
- If gap > 0: you have a shortfall. The calculator tells you how much extra monthly investment you need to save before retirement to cover the gap.
(It uses the future value of an annuity formula solved for the additional monthly payment.) - If gap ≤ 0: you have a surplus – great!
Outputs (Right Panel)
| Output | Meaning |
|---|---|
| Required Retirement Corpus | The lump sum you need at retirement (in today’s currency). |
| Your Estimated Corpus | What you will likely have based on current inputs. |
| Monthly Retirement Income | How much you can withdraw each month from your estimated corpus. |
| Retirement Gap Analysis | Shows the difference (shortfall or surplus) and suggests an extra monthly amount to invest if needed. |
Visual Aids
1 Bar Chart – Investment Growth Over Time
- Shows how your corpus grows every 5 years from current age to retirement age.
- The height of each bar is proportional to the corpus value.
2 Yearly Projection Table
Lists for every year:
- Age.
- Year number (from now).
- Corpus at that year end.
- Monthly expense (inflation‑adjusted up to that year).
The row for your retirement age is highlighted in orange.
Interactive Features
- Real‑time updates – move a slider or type a number, and all outputs, the chart, and the table refresh instantly.
- Currency switcher – changes the symbol used in all formatted numbers.
- Blur validation – when you leave a number field, it clamps values to allowed ranges and syncs sliders.
- “Calculate Plan” button – manually triggers a refresh (though auto‑update is already on).
- Download PDF – generates a professional report with your inputs, summary, gap analysis, and the yearly table, including the PlanMyInvest logo.
Key Assumptions & Limitations
- Monthly compounding – both pre‑ and post‑retirement returns are applied monthly.
- Inflation is constant – the rate you enter applies uniformly each year.
- Expenses stop at life expectancy – the corpus is designed to last exactly until that age.
- No taxes or withdrawal penalties – not considered.
- Post‑retirement return is fixed – does not adjust for changing risk profile over time.
- The “additional monthly investment” suggestion assumes you invest that extra amount immediately and earn the same pre‑retirement return.
Example Walkthrough
Suppose:
- Current age = 30, Retirement = 60, Life expectancy = 85.
- Savings = ₹5,00,000, Monthly investment = ₹10,000.
- Return before = 12%, after = 7%, inflation = 6%.
- Monthly expenses today = ₹50,000.
The calculator:
- Inflates ₹50,000 over 30 years → ~₹2,87,000 monthly expense at retirement.
- Calculates required corpus to sustain that for 25 years (300 months) at 7% p.a. → ~₹3.20 Cr.
- Grows ₹5L + ₹10k/month for 30 years at 12% → ~₹2.50 Cr.
- Monthly income from ₹2.50 Cr at 7% for 25 years → ~₹80,000.
- Gap = ₹3.20 Cr – ₹2.50 Cr = ₹70 L (shortfall).
- Suggests investing an extra ₹5,000 per month to close the gap.
Final Takeaway
This retirement calculator gives you a quantitative, personalised roadmap from your current age through your post‑retirement years. By adjusting assumptions (returns, inflation, savings rate) you can instantly see the impact and make informed decisions – whether that means saving more, retiring later, or adjusting your expected lifestyle.
