Retirement Planning Calculator

Retirement Planning : Calculate Expenses

Step 1: Calculate Monthly Expenses

Current Monthly Expense
Current Age in Years
Retirement Age in Years
Inflation Rate(%)

Step 2: Calculate Corpus Required for Retirement

Current Retirement Savings
Employee's Contribution to PF
Employer's Contribution to PF
Your Life Expextancy
Spouse's Current Age
Spouse's Life Expectancy
Expected Returns on Post-Retirement Corpus(%)
Expected Returns on Pre-Retirement Savings(%)
Expected Annual Salary Hike(%)
Expected Returns on Savings for Corpus Gap(%)

Step 3: Corpus Summary

(A) Retirement Corpus Needed
(B) Value of Retirement Savings
(C) Retirement Corpus Gap = (A-B)

Step 4: Savings Needed

Savings Needed Per Month
OR
Savings Needed Per Year

Kindly note that there can be alternate methods of calculating retirement corpus. This calculator is given on a best effort basis & is subject to our standard disclaimer & disclosure.

Guidance

STEP 1
Consider those monthly expenses that you will need even during retirement. As an example, exclude EMI as the loan is likely to be paid off before retirement but then add additional budget for heath care as post retirement, this will go up. Take the total figure at the current value.

STEP 2
Objective here is to establish the future value of your current & future retirement savings on your retirement date.

Total up all your retirement savings as on today including PF, VPF, NPS & PPF etc. Mention present monthly PF savings, separately for your and your employer's share, respectively.

Identify the target return on both the retirement savings before you retire and after you retire. You can also have a different target rate for the incremental savings to be done for the corpus gap, between now and till your retirement.

Your expected salary hike is needed only to factor your PF savings growth.

STEP 3 & 4
(A) Retirement Corpus needed is present value of the corpus you need on the retirement date. This is keeping in mind the inflation adjusted expenses for the given life expectancy and a target rate of return on the post retirement portfolio.

(B) This is total of all your present and future retirement savings, adjusted for salary hike, given a target rate of return.

(C) Is the likely gap in the retirement corpus, based on the given inputs and above assumptions.

Savings needed per month will help to bridge the likely retirement corpus gap.