How this calculator works
This calculator uses the 25x rule (also called the 4% rule): multiply your desired annual expenses at retirement by 25 to get your target corpus. A portfolio of that size, invested moderately conservatively, can support a 4% annual withdrawal rate indefinitely — you draw down 4% a year while the rest continues growing to offset inflation.
It then works backward from that target to tell you the monthly SIP needed, given your years remaining until retirement and an assumed return rate.
FAQs
What return should I assume for retirement planning?
A long-term equity index fund average (around 12%) is reasonable while you're still years from retiring; many planners shift assumptions toward a more conservative blended rate as retirement approaches.
Does this account for inflation?
Enter your expenses in today's terms and use a higher assumed corpus if your retirement is decades away — expenses will be considerably higher by then due to inflation. See how much money you need to retire in India for the full inflation-adjusted walkthrough.