Retirement & FIRE Calculator
Compare your projected savings with the corpus needed to support retirement.
Retirement corpus drawdown
Nominal future balances after modeled withdrawals. Spending needs incorporate your inflation assumption; the reserve remains separate.
View chart data
Connect the retirement target to the spending it must fund
A useful retirement target depends on when you retire, how long you plan for, your spending, other income and the return assumptions used before and after retirement. This calculator first inflates current expenses to retirement, then values the portfolio withdrawals needed after eligible pension income. It also checks whether current assets and future contributions can fund that target.
Worked example
For retirement starting now and lasting two years, Rs 10,000 monthly expenses, zero inflation, zero return and no pension require Rs 2,40,000 for spending. A separate Rs 50,000 reserve raises the target to Rs 2,90,000. If retirement starts at 50 but pension starts at 60, pension does not fund the ten-year interval before age 60.
Formula and calculation method
Target at retirement = present value of monthly spending gaps + separate reserve at retirementCurrent assets and end-of-month contributions grow at the entered effective annual pre-retirement return. Contributions step up annually and stop at retirement. Expenses increase annually with the inflation assumption. Monthly pension is entered in nominal money at its independent start age and increases by its own annual percentage. Beginning-of-month portfolio withdrawals equal expenses less pension, floored at zero. The planning period ends on the chosen end-age birthday; it does not include that following year.
Interpretation and limitations
The separate reserve is entered in today's purchasing power and inflated to retirement. It is reserved before funding portfolio withdrawals; future reserve growth, spending and preservation are not modeled. Pension surplus and pre-retirement pension receipts are not reinvested. Required starting SIP solves the gap after projected growth of current assets and includes future annual contribution increases. When retirement starts now there is no contribution period, so a gap is capital needed rather than a monthly SIP. Defaults are scenarios, not forecasts; taxes, variable returns and unplanned costs are excluded.
Reference: SEBI Investor: retirement investment tracker.
Retirement & FIRE Calculator: Frequently Asked Questions
How much retirement corpus do I need in India?
There is no universal amount. The target depends on expenses, retirement age, planning end age, inflation, post-retirement returns, pension and reserves. Start with the spending the portfolio must actually fund rather than a round-number target.
Why does a retirement calculator include inflation?
Current monthly expenses generally buy less in future years when prices rise. The calculator first projects spending to retirement and then applies the chosen inflation assumption during retirement, so the target is not based only on today's costs.
How much should I invest monthly for retirement?
The required starting contribution is the amount needed to bridge the modeled target after allowing for growth of existing savings. It depends on years available, assumed returns and any annual increase in contributions.
What does FIRE mean?
FIRE stands for Financial Independence, Retire Early. In this tool it means a modeled age at which projected investable assets cover the selected spending plan. It does not establish that leaving employment is financially safe.
Is Rs 1 crore enough to retire?
It may or may not be. The same corpus funds very different durations at different expense levels, inflation rates and pension amounts. A nominal crore decades from now also has different purchasing power from a crore today.
More questions (5)
How does pension income change the retirement target?
Eligible pension reduces the monthly spending gap that investments must cover after the pension start age. It does not fund earlier retirement years automatically, and the model does not reinvest pension surpluses.
Does the FIRE age mean I can safely retire?
No. It is the first whole age from your current age to at most 90 at which projected assets cover this deterministic target. It is not a recommendation or a probability of success. Longer life, taxes, market losses and unexpected expenses may require more resources.
Does pension start sooner when I select early retirement?
No. Pension eligibility remains fixed at the entered pension start age throughout the FIRE comparison. Contributions stop at each candidate retirement age, and the planning end age stays unchanged.
Is the target based on the 4% rule or 25 times expenses?
No. It discounts each projected monthly spending gap at the chosen post-retirement return. A fixed spending multiple does not account for the particular pension timing, reserve or planning term you enter.
What assets should I include?
Include assets actually available to fund this plan. Avoid counting a home you will keep living in or restricted balances that cannot be withdrawn on this timeline. NPS restrictions, pension entitlements and tax treatment need separate assessment.