Retirement Expense Calculator
See what your monthly spending becomes by the time you retire and how big a corpus it takes to cover it.
Enter your numbers
Example: 25000
Example: 20
Example: 6
Example: 25
Example: 8
Recent
Formula
How the calculation works
Your current monthly expense is grown at the inflation rate for every year until retirement, because the same lifestyle costs more by then.
The future annual expense is that monthly figure times twelve, and the corpus is the pot that pays it for every year of retirement.
The post-retirement return is the rate the fund keeps earning while you draw from it, which is why a higher return lowers the corpus you need.
Common mistakes
- Using today's expenses as the retirement figure, which leaves the corpus far short once twenty years of inflation are counted.
- Forgetting health costs, which usually rise faster than general inflation after retirement.
When to use it
- Use it well before retirement to see the gap you still have to fund, and to test how a higher return narrows it.
- It is not a withdrawal plan; it sizes the pot you need, not how much to draw each year.
Worked example
Spending 25,000 a month today, retiring in 20 years at 6% inflation: your monthly cost becomes 80,178.39, annual 962,140.64, and you need about 10,270,636 for 25 years at 8%.
Common questions
Why is the corpus so much larger than the monthly expense?
Because it must fund every year of retirement, so it is roughly the annual expense multiplied by the number of years adjusted for the return earned in retirement.
Should I use today's prices or future prices?
Enter today's monthly expense and let the calculator inflate it, so the result reflects what things will actually cost when you retire.
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