Retirement Calculator

Calculate your retirement savings target and whether your current plan gets you there.

Savings Plan

1%20%
1 yr40 yrs

Future Value

₹10,66,390

Total Invested

₹7,00,000

Total Returns

₹3,66,390

Wealth Multiplier

InvestedReturns

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Retirement Calculator Formula & How It Works

Nest Egg Needed = Annual Retirement Expenses ÷ Safe Withdrawal Rate (4%)
  • 4% rule: withdraw 4% of portfolio in year 1, adjust for inflation annually
  • Annual expenses in retirement = current expenses × retirement spending ratio
  • Savings target = Annual retirement income needed ÷ 0.04
  • Monthly savings needed = solve FV formula for PMT

The 4% rule (Trinity Study) suggests withdrawing 4% of your portfolio annually — historically sustainable for 30+ years. If you need ₹60,000/month in retirement (₹7.2L/year), you need ₹1.8 crore (7.2L ÷ 0.04). Calculate how much to save monthly to reach this target by your retirement date using the FV formula.

Retirement Calculator FAQs

How much money do I need to retire at 60?

Using the 25× rule (inverse of 4%): multiply your annual retirement expenses by 25. If you need ₹50,000/month = ₹6L/year, you need ₹1.5 crore. Add a buffer for healthcare and inflation. This is the standard starting point for retirement planning.

What is the 4% retirement withdrawal rule?

The 4% rule (from the Trinity Study) states that withdrawing 4% of your portfolio in year one, then adjusting for inflation annually, has historically lasting 30 years in 95%+ of market scenarios. It assumes a balanced stock/bond portfolio.

How much should I save for retirement each month?

Common guideline: save 15% of gross income starting in your 20s, or 20%+ if starting later. Use the retirement calculator to find the exact monthly amount based on your current savings, timeline, and retirement income goal.

Does Social Security / EPF cover retirement?

EPF (Employee Provident Fund) in India provides a foundation but rarely covers full retirement needs. Most retirees need personal investments beyond EPF. In the US, Social Security replaces 40% of pre-retirement income on average — not enough alone.

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