Retirement Calculator

A retirement calculator answers two questions: how large a corpus you need before you can stop working, and whether your current savings and monthly investments will get you there.

Enter your age, retirement age, monthly spending, and life expectancy. The calculator shows you a corpus target under two modes and tells you exactly how much more you need to save each month if you are falling short. Every input updates the result in real time.

These two modes answer different versions of the same retirement question.

Preserve Capital

You spend only the real return on your corpus each month. The principal stays untouched and can be passed on as an estate. You need a larger corpus, but your savings never run out regardless of how long you live.

Full Drawdown

You spend both the return and the principal, drawing the corpus to zero by your life expectancy. This needs a smaller corpus but leaves nothing behind.

Most financial planners use the Preserve Capital figure as the primary target and the Full Drawdown figure as the absolute minimum to aim for.

The calculator is built around two sections that work in sequence.

Section 1: Your corpus target

Enter your current age, retirement age, and monthly household expenses today. The calculator inflates those expenses to what they will cost at retirement, then shows the corpus required under both Preserve Capital and Full Drawdown side by side.

Section 2: Your savings gap

Enter your existing savings and monthly SIP. The calculator projects how large your corpus will be at retirement and how much of the target that covers. If you are short, it suggests a step-up SIP to close the gap.

Additional features:

• Separate inflation rates for the saving years and the retirement years
• Currency support for INR, AED, and USD with tailored defaults for each
• Adjustable return and inflation assumptions for more precise planning

The calculator models two distinct phases of your financial life.

Accumulation phase (today to retirement)

Your monthly expenses are inflated to retirement day using the pre-retirement inflation rate. Your savings and SIP grow at the pre-retirement return rate. The difference between the projected corpus and the target corpus is your gap.

Retirement phase (retirement to life expectancy)

• Preserve Capital: the corpus divided by the real monthly return gives the monthly draw you can sustain indefinitely without touching the principal.
• Full Drawdown: a standard annuity formula allocates the corpus across all retirement months, depleting it to zero at life expectancy.

The step-up SIP suggestion assumes you increase your monthly investment by 5% each year, which is realistic for most professionals whose income grows over time and produces a lower starting SIP than a flat-rate calculation.

Step 1: Pick your currency

Choose INR, AED, or USD. Return and inflation defaults for that currency load automatically.

Step 2: Set your retirement goal

Enter your current age, the age you want to retire, and your current monthly household expenses. Both corpus targets appear instantly.

Step 3: Enter what you already have

Add your existing lumpsum savings and your current monthly SIP. The coverage bar shows what percentage of the target your current plan covers.

Step 4: Read the gap

If coverage is below 100%, the Suggested SIP box shows the year-1 monthly amount needed, growing 5% each year, to reach the full corpus by retirement.

Step 5: Adjust assumptions (optional)

Click Assumptions to fine-tune pre and post-retirement return rates and inflation, or toggle between Preserve Capital and Full Drawdown to compare both targets.

Two targets, one view

Most calculators show one retirement number. This one shows Preserve Capital and Full Drawdown side by side so you always know your floor and your ideal goal.

Separate inflation rates for each phase

Pre-retirement spending (rent, EMIs, school fees, travel) tends to inflate faster than post-retirement spending. Using a single blended rate understates how much you need. This calculator uses separate rates for each phase.

Step-up SIP, not flat SIP

The suggested SIP grows 5% per year rather than staying flat. This matches how most salaries grow and gives you a lower starting contribution than a flat-SIP calculation would.

Year-by-year cashflow table

The cashflow table shows every five-year milestone: how your corpus builds during the saving years, and how it depletes or holds steady through retirement. No black box.

NRI-appropriate defaults

• INR: 15% pre-retirement return, 9% pre-retirement inflation, 7% post-retirement return
• AED and USD: 10% pre-retirement return, 4% pre-retirement inflation, 7% post-retirement return