Retirement SIP Calculator
Once you know the corpus you need, the next question is how much to invest each month. This calculator answers it, taking your current savings and SIP into account.
Results
Total monthly SIP needed
₹25,144
- Your plan
- Shortfall of ₹1,17,24,572
- Corpus needed at retirement
- ₹7,71,48,478
- Projected corpus
- ₹6,54,23,906
- Shortfall
- ₹1,17,24,572
- Extra monthly SIP needed
- ₹5,144
- Monthly expense at retirement
- ₹2,87,175
- Years to retirement
- 30
- Years in retirement
- 25
To spend ₹50,000 a month in today's money from age 60 to 85, you need about ₹7,71,48,478 at retirement. Your savings are projected to reach ₹6,54,23,906, leaving a shortfall of ₹1,17,24,572.
Projected corpus vs corpus needed
- Projected corpus₹6,54,23,906 (84.8%)
- Shortfall₹1,17,24,572 (15.2%)
Show the calculation steps
- Years to retirement = 60 − 30 = 30; years in retirement = 85 − 60 = 25.
- Monthly expense at retirement = ₹50,000 × (1 + 6%)^30 = ₹2,87,175.
- Corpus needed = present value of 25 years of expenses that rise with inflation while the corpus earns 7%: ₹7,71,48,478.
- Projected corpus = savings grown ₹1,98,37,399 + SIP grown ₹4,55,86,506 = ₹6,54,23,906.
- Total monthly SIP needed to close the gap = ₹25,144 (₹5,144 more than you invest now).
- Assumes withdrawals at the start of each year that rise with inflation, and constant returns. Results are estimates, not advice. Plan for a margin of safety.
The power of starting early
Because returns compound, a SIP started ten years earlier can be less than half of what a late starter needs for the same corpus. Every year of delay raises the monthly amount.
Step up as your income grows
The result is a flat SIP. If you increase your SIP each year with your income, you can start with a smaller amount. Try the step-up SIP calculator with the corpus you need.
Formula
Expense at retirement = Expense today × (1 + inflation)^years
Corpus = Σ (yearly expense × ((1 + inflation) ÷ (1 + return))^t) over the retirement years
Projected corpus = Savings × (1 + i)^n + SIP × ((1 + i)^n − 1) ÷ i × (1 + i)
Where:
- i
- = Monthly return before retirement
- n
- = Months until retirement
- t
- = Year of retirement, starting at 0
Example calculation
Age 30, retire at 60, ₹50,000 a month today, ₹10 lakh saved
Inputs
- Current Age
- 30 years
- Retirement Age
- 60 years
- Plan Until Age
- 85 years
- Monthly Expenses Today
- ₹50,000
- Expected Inflation
- 6 %
- Return Before Retirement
- 10 %
- Return After Retirement
- 7 %
- Current Retirement Savings
- ₹10,00,000
- Monthly Investment Now
- ₹20,000
Result
- Your plan
- Shortfall of ₹1,17,24,572
- Corpus needed at retirement
- ₹7,71,48,478
- Projected corpus
- ₹6,54,23,906
- Shortfall
- ₹1,17,24,572
- Total monthly SIP needed
- ₹25,144
- Extra monthly SIP needed
- ₹5,144
- Monthly expense at retirement
- ₹2,87,175
- Years to retirement
- 30
- Years in retirement
- 25
Step-by-step
- Years to retirement = 60 − 30 = 30; years in retirement = 85 − 60 = 25.
- Monthly expense at retirement = ₹50,000 × (1 + 6%)^30 = ₹2,87,175.
- Corpus needed = present value of 25 years of expenses that rise with inflation while the corpus earns 7%: ₹7,71,48,478.
- Projected corpus = savings grown ₹1,98,37,399 + SIP grown ₹4,55,86,506 = ₹6,54,23,906.
- Total monthly SIP needed to close the gap = ₹25,144 (₹5,144 more than you invest now).
Important notes
- The SIP is invested at the start of each month and grows at the pre-retirement return.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How much SIP do I need for retirement?
It is the level monthly investment that, with your existing savings, grows to the corpus needed at your retirement date.
What if I can't afford the SIP shown?
Retire later, reduce planned spending, or start with a smaller SIP and raise it every year.
Is the SIP inflation-adjusted?
It is a fixed amount in future rupees. You can raise it yearly in line with your income.
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- Retirement Age CalculatorFind the earliest age you can retire on your current savings and monthly investing, given your expenses and inflation.
- Pension CalculatorFind the corpus and monthly investment needed for a target monthly pension, adjusted for inflation.
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