Retirement Calculator
The nest egg you'd need to fund your retirement spending, and whether your savings rate gets you there.
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4% is the common rule-of-thumb starting point.
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Results
Your number—
Years until you reach it—
Balance in 30 years—
Monthly income it supports—
You'll contribute (30 yr)—
Market growth—
The number you are aiming for
Retirement planning has one central question: how large does the corpus need to be for its returns to cover your spending indefinitely? The standard approach inverts your annual spending using a safe withdrawal rate:
Corpus = Annual spending / Withdrawal rate
At a 4% withdrawal rate, that means 25 times your annual spending. If you expect to need 12,00,000 a year, the target is 3,00,00,000. At a 3% rate the multiple rises to 33 times; at 5% it falls to 20 times.
Where the 4% rule comes from, and its limits
The figure originates from a 1990s study of US market history which found that a portfolio withdrawing 4% in the first year, adjusted for inflation thereafter, survived 30 years in nearly every historical period tested. It is a useful anchor, but it carries assumptions worth knowing: it was based on US data, a specific stock-bond mix, and a 30-year horizon. Someone retiring at 50 with a 40-year horizon, or investing in a different market, is outside the original study's scope. Many planners now use 3–3.5% for early retirement and treat 4% as an upper bound rather than a default.
A worked example
You want 12,00,000 a year, so at 4% your number is 3,00,00,000. You currently hold 5,00,000 and save 25,000 a month, expecting 10% returns. The calculator shows you reaching the target in roughly 24 years and 3 months.
The chart underneath is the part worth studying. Over 30 years you would contribute about 95,00,000 of your own money, while growth adds roughly 4,70,00,000. Your contributions make up under 20% of the final balance. This is why the years you spend invested matter more than the amount you invest — and why someone starting at 25 with a modest amount usually ends up ahead of someone starting at 40 with far more.
What this calculator leaves out
- Inflation. The corpus target is in today's money. If you retire in 25 years, the equivalent spending will cost considerably more in nominal terms. Run your annual spending figure through the inflation calculator and use the inflated number as your target for a more honest picture.
- Pensions and other income. EPF, NPS, annuities, rental income, or a state pension all reduce the corpus you need to build. Subtract expected annual income from your spending figure before calculating.
- Healthcare. Medical costs typically inflate faster than general prices and rise steeply with age. Health insurance premiums in later life are a substantial line item that many plans understate.
- Sequence of returns. A severe market fall in the first few years of retirement is far more damaging than the same fall later, because you are selling assets at depressed prices to fund living costs. Holding two to three years of expenses in cash or short-term debt at retirement is the usual defence.
Using this sensibly
Treat the output as a direction rather than a destination. The inputs that matter most are your savings rate and your timeline, both of which you control, rather than the return assumption, which you do not. Re-run it annually with your actual balance. If the years-to-target figure is not moving in the right direction, the fix is almost always the monthly contribution rather than a more optimistic return.
Frequently asked questions
What is the 4% rule?
A guideline suggesting you can withdraw 4% of your retirement portfolio in the first year, adjust that amount for inflation each year afterwards, and have the money last around 30 years. It implies a target corpus of 25 times your annual spending.
Is 4% still a safe withdrawal rate?
It is debated. The original research was based on US market history over 30-year periods. For longer retirements, or in markets with different return profiles, many planners now suggest 3–3.5%. Treat 4% as an upper bound rather than a conservative assumption.
How much should I be saving for retirement?
A common benchmark is 15% of gross income including any employer contribution, started in your twenties. Starting later requires more — someone beginning at 40 typically needs 25% or above to reach the same position.
Should my retirement target account for inflation?
Yes, and this calculator does not do it automatically. Enter your desired spending in today's money to see the target in today's terms, then run that figure through the inflation calculator to understand what the equivalent will cost at your retirement date.
What return should I assume before retirement?
A portfolio weighted toward equities has historically returned 10–12% over long periods in India, with substantial year-to-year variation. As you approach retirement and shift toward debt, the expected return falls, so a single rate across the whole period is a simplification.
Does this include EPF, NPS, or a pension?
No. If you expect income from those sources, subtract the annual amount from your spending figure before calculating, since the corpus only needs to cover the shortfall.