Why is starting to save early so important for retirement?

Starting early is crucial because of the power of compounding. The longer your money is invested, the more time it has to grow, and the more time your returns have to generate their own returns. Even small amounts invested early can grow into a much larger corpus than larger amounts invested later in life.

What is a safe expected rate of return to use?

The expected rate of return depends heavily on where you invest. Low-risk investments like PPF or FDs might give 7-8%, while equity mutual funds have historically provided returns in the 12-15% range over the long term, but with higher risk. A blended portfolio might average around 10-12%. It's best to be conservative with your estimate.

Does this calculator account for inflation?

No, this calculator does not account for inflation. The 'Total Corpus' shown is the absolute value in the future. The actual purchasing power of that amount will be lower due to inflation. To get a true sense of your retirement readiness, you should also use an inflation calculator to see what your corpus will be worth in today's money.

Retirement Calculator

Plan for your golden years by estimating your total retirement corpus.

Your Financial Details

Current Age25 Years

Retirement Age60 Years

Monthly Investment (SIP)₹10,000

Current Retirement Savings₹5,00,000

Expected Return (% p.a.)12.0%

Estimated Retirement Corpus

₹9,13,52,500

Invested Amount:₹47,00,000

Wealth Gained:₹8,66,52,500

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About the Retirement Calculator

Empowering you to plan for a financially secure future.

Why Plan for Retirement?

Retirement planning is the process of setting goals for your retirement income and taking steps to achieve those goals. It includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets. With rising life expectancy and increasing healthcare costs, starting early and planning meticulously is more important than ever to ensure a financially secure and comfortable life after you stop working.

How This Calculator Works

This calculator projects your potential retirement corpus based on several key factors: your current age and planned retirement age (which define your investment horizon), your current retirement savings (your starting point), your monthly investment (SIP), and the expected rate of return on your investments. The tool calculates the future value of both your current lump sum savings and your future monthly investments and adds them together to estimate your total retirement corpus, showing you the powerful effect of compounding over time.

Frequently Asked Questions

Practical Applications

Goal Setting: See if your current saving habits are on track to meet your retirement goals. If not, you can see how increasing your monthly investment can help.
Understand Compounding: Visualize how your money grows exponentially over time, especially the "Wealth Gained" portion, which highlights the power of compounding.
Scenario Analysis: Experiment with different retirement ages or return rates to understand their impact on your final corpus. For example, see how retiring 5 years later could significantly increase your savings.

Disclaimer: This calculator is for illustrative purposes only. Investment returns are not guaranteed and are subject to market risks. Inflation is not factored into this calculation, which will reduce the future purchasing power of your corpus. Always consult a financial advisor for personalized retirement planning.