How this calculation works
Estimate the corpus needed to fund inflation-adjusted living costs through a chosen planning age, then subtract the projected value of current savings and solve for extra monthly saving. It separates the return while saving from the return during retirement. The target funds expenses to the selected age; it does not reserve a final inheritance or price uncertain longevity.
Worked example
This example uses illustrative inputs. Your current result is shown above.
To isolate the cash budget, enter current age 30, retirement age 40, planning age 60, monthly expenses ₹20,000, current savings ₹10,00,000, and 0% for inflation and both returns. Twenty retirement years require ₹48,00,000. The ₹38,00,000 shortfall spread across 120 month-end deposits requires ₹31,666.67 per month.
Assumptions and limits
- Retirement spending starts immediately at retirement and is modelled with beginning-of-month withdrawals in inflation-adjusted terms.
- Additional saving happens at month-end before retirement; rates and inflation remain constant.
- Pensions, separate healthcare shocks, tax, fees and any desired balance after the planning age must be considered outside this model.
Questions people ask
Why is the post-retirement return adjusted for inflation?
The model values a stream of expenses that maintains purchasing power. Dividing the gross return factor by the inflation factor gives the real return used to fund that stream.
What if current savings already cover the target?
The shortfall and extra monthly saving are floored at zero. That means the entered assumptions cover this model’s expense target, not that all future risks are funded.
What does changing the planning age do?
It changes how many monthly expenses the corpus must fund. A longer retirement horizon normally raises the required corpus, even if the first month’s expense is unchanged.