Find out how much money you could have when you retire. Enter your current age, retirement age, monthly saving and expected return to see your estimated retirement corpus.
1. Enter your current age. 2. Enter the age you want to retire at. 3. Enter your monthly saving and expected return, then click Calculate Retirement Corpus.
Retirement feels far away when you are 25 or 30, but the money you need is built slowly, year by year, by small monthly savings and the power of compounding. This free retirement calculator shows what your monthly savings can grow into by the time you retire. Enter your current age, your planned retirement age, how much you can save every month and the expected return, and it shows your estimated retirement corpus, how much you will save yourself, and how much growth adds on top.
The most important number in retirement planning is not how much you save, but when you start. A person who starts at 25 can save less every month and still end up with more than a person who starts at 40 and saves twice as much. That is because the early saver's money has 15 extra years to compound. If you have not started yet, the best time to start is today, even with a small amount.
Suppose you are 30 years old, you plan to retire at 60, you save 20,000 every month and your investments earn 10 percent a year. You have 30 years, which is 360 months. This retirement calculator gives a corpus of about 45,587,000. You will save 7,200,000 yourself (20,000 times 360 months), and the growth adds about 38,387,000 on top. More than 80 percent of your retirement money comes from growth, not from your own savings — that is the reward for starting early and staying invested for 30 years.
Now suppose you start at 45, retire at 60, and save 40,000 every month — twice as much — at the same 10 percent return. You have only 15 years (180 months). The calculator gives a corpus of about 16,717,000. You saved 7,200,000 yourself, the same as the first example, but the growth is only about 9,517,000, because the money had half the time to compound. Even saving twice as much every month, the late starter ends up with far less than the early starter. Time matters more than the amount.
The calculator uses the future value of a monthly savings plan: FV = P x [((1 + r)^n - 1) / r] x (1 + r). Here P is the monthly saving, r is the monthly return (the yearly return divided by 12 and by 100), and n is the total number of months until retirement. For the first example, r is 10 divided by 1,200, which is 0.008333, and n is 360. The formula assumes you save at the start of each month and the return stays the same every year, which is a simplification — real returns go up and down.
Start now, even with a small amount. Starting at 25 with 5,000 a month beats starting at 40 with 20,000 a month. Increase savings every year. Raise your monthly saving by 10 percent each year as your salary grows. Do not withdraw early. Taking money out of your retirement fund breaks the compounding and is very costly. Use a realistic return. Plan with 8 to 10 percent a year for long-term investments, not 15 or 20 percent. Check your pension too. Add any government pension, employer fund or property income to this corpus when you plan.
Waiting until 40 to start. Every year you wait costs you far more than the money you saved by waiting. Assuming a very high return. Planning on 15 percent a year makes your plan look good on paper but can leave you short in real life. Forgetting inflation. Prices will be much higher in 30 years, so your corpus must be bigger than today's prices suggest. Counting on one income source. Do not depend only on a pension or only on savings; plan for several sources. Withdrawing for small needs. Using retirement savings for a car or a holiday destroys years of compounding.
Pro Tip: Try entering a retirement age 5 years later and see how much bigger your corpus becomes — working a few extra years is one of the strongest retirement tools.
Note: This calculator gives an estimate only. It is not financial advice. Talk to a financial adviser for a plan based on your full situation.
How much money do I need to retire? A common rule is 25 times your yearly expenses. If you spend 600,000 a year, you need about 15,000,000. Use this calculator to see how much your monthly savings can build, and compare it with your target.
When should I start saving for retirement? As early as possible. Starting at 25 with a small monthly saving beats starting at 40 with a much bigger one, because compounding needs time. Even 5,000 a month at 25 is a great start.
What return should I assume for retirement planning? For long-term investments, 8 to 10 percent a year is a realistic planning number. Do not plan on 15 percent or more, because real returns vary every year.
Is my retirement corpus the same as my pension? No. This calculator shows what your own monthly savings can grow into. Add your pension, employer fund, rental income or property value separately to see your full retirement picture.
What happens if I retire earlier than planned? Retiring early means fewer years of saving and more years of spending, so your corpus must be bigger. Try a younger retirement age in the calculator to see the effect.
Can I change my monthly saving later? Yes, and you should. Raise your saving by about 10 percent every year as your salary grows, and your final corpus will grow a lot.
Does this calculator include inflation? No. It shows the future value of your savings in future money, which will buy less than the same amount today. That is why your target should be higher than today's prices suggest.
Is this retirement calculator financial advice? No. It is an estimate for planning only. For a personal plan, talk to a licensed financial adviser who knows your full income, debts and goals.
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