Free Retirement Calculator – Estimate Your Corpus

How the Retirement Calculator Projects Your Corpus

A retirement calculator answers the question most people avoid asking: at your current saving rate, how much will actually be there when you stop working? Give it four inputs — what you have saved already, what you add each month, the annual return you expect, and the years left until you retire — and it projects a single corpus figure, alongside how much of that came from your own money versus growth. That split is the useful part. Someone saving for 25 years typically finds that returns contribute several times more than contributions, which is the strongest argument for starting early there is. A 30-year-old wondering whether ₹15,000 a month is enough, a 45-year-old worried they left it late, and anyone with a lump sum from a bonus or property sale all use it. Two future-value calculations run in parallel and are added together. Your existing savings compound as a lump sum: FV = current savings × (1 + i)^n, where i is the monthly return, the annual rate divided by 12 and 100, and n is the number of months. Your monthly contributions compound as a series: FV = monthly amount × ((1 + i)^n − 1) ÷ i. Adding the two gives the projected corpus. Total contributed is your starting savings plus the monthly amount times the number of months, and growth is the corpus minus that. Everything assumes a steady rate, which real markets never deliver year to year, though long horizons tend to smooth the average. Here is a full projection. Say you have ₹5,00,000 saved, you invest ₹15,000 a month, you assume 12 per cent annual returns, and you have 25 years to go. That is 300 months at a monthly rate of 1 per cent. Your existing ₹5 lakh grows to about ₹98,94,233. Your monthly contributions grow to roughly ₹2,81,82,699. Together the corpus lands near ₹3,80,76,933. You contributed ₹50,00,000 of that — the remaining ₹3,30,76,933 is growth. Run the same numbers with 20 years instead of 25 and the corpus falls to about ₹2,02,85,107, so those final five years alone add nearly ₹1.78 crore. The scenarios people test are specific. A software engineer at 32 checks whether her existing EPF balance plus a ₹20,000 monthly SIP reaches the corpus she has estimated for her expenses. A couple who plan to retire at 55 rather than 60 see what five fewer years of compounding costs them and decide whether the trade is worth it. Someone who receives a ₹10 lakh inheritance can compare investing it now against spreading it across a few years. And a 40-year-old starting from zero finds that ₹8,000 a month at 11 per cent over 30 years still builds around ₹2,24,36,158, which is often enough to convert paralysis into action. Two limitations decide whether this projection is useful or misleading. First, the figure is nominal, not adjusted for inflation, and ₹3.8 crore in 25 years will not buy what ₹3.8 crore buys today — at 6 per cent inflation its purchasing power is closer to ₹88 lakh in current terms. Either enter a real return, meaning your expected return minus inflation, or mentally discount the result. Second, the steady-rate assumption is the biggest simplification: a poor market in the five years just before you retire can dent a corpus badly, which is why advisers shift allocation toward debt as retirement nears. Also remember taxes on withdrawals and the fees your funds charge are not modelled here. Test a conservative rate alongside your optimistic one and plan around the lower figure. This is a planning projection, not financial advice or a guarantee; consult a SEBI-registered adviser for decisions this size. The calculator runs entirely in your browser and never stores your numbers.

Retirement Calculator Formula & Method

🔥 Trending Tools