Retirement Calculator

The 4% rule is a guideline suggesting you can withdraw 4% of your retirement corpus annually (adjusted for inflation) with a high probability of the money lasting 30 years. For example, if you need ₹12 lakh per year in expenses, you would need a corpus of ₹3 crore. This is a starting point — your actual safe withdrawal rate depends on asset allocation, market conditions, and retirement duration.

At 6% inflation, prices roughly double every 12 years. If you currently spend ₹50,000/month, you would need about ₹2.87 lakh/month at the same standard of living after 30 years. Underestimating inflation is one of the biggest retirement planning mistakes. This calculator inflation-adjusts your expenses throughout the entire retirement period.

When the safe withdrawal rate is set (default 4%), the required corpus = annual expenses at retirement ÷ SWR. For more precise calculations without SWR, the calculator uses the present value of a growing annuity formula — discounting future inflation-adjusted expenses back to the retirement date using your expected return. Tax on withdrawals increases the required corpus proportionally.

In advanced mode, you can specify your portfolio split between equity, debt, and gold with different expected returns for each. The calculator computes a blended return based on your allocation. A 60-30-10 equity-debt-gold portfolio with 12%, 7%, and 8% returns yields a blended return of 10%. Post-retirement, a slightly more conservative allocation is assumed automatically.

Contribution growth models the reality that your savings increase as your income grows. Even a 5-10% annual increase in monthly savings can dramatically improve your projected corpus over 20-30 years due to compounding. If your salary typically grows 8-10% per year, increasing savings by at least 5% annually is a prudent strategy.

Healthcare expenses tend to increase significantly with age and often outpace general inflation. In advanced mode, you can add a separate monthly healthcare cost that gets inflation-adjusted. Medical insurance premiums, out-of-pocket treatments, and long-term care should all be budgeted. A health emergency fund of 6-12 months of expenses is recommended in addition to the corpus.

If your retirement corpus needs to support your spouse as well, include their monthly expenses in the advanced settings. This accounts for dual-living costs and ensures the corpus sustains both lifestyles. Consider that the surviving spouse may need the corpus to last longer than your own life expectancy.

Scenarios model different market conditions: conservative (lower returns), moderate (your base assumption), and optimistic (higher returns). For example, with a 12% base return and a 3% conservative delta, the conservative scenario models 9% returns. This helps you understand the range of possible outcomes and plan for the less favorable case.

No. All projections are illustrative and based on the assumptions you enter. Actual investment returns, inflation, expenses, tax laws, and life expectancy may vary significantly. Market returns are inherently uncertain. Use these projections as a planning guide and review your plan regularly. Consider consulting a certified financial planner for personalized advice.