Retirement Calculator
Plan your future with confidence
Basic Information
Financial Information
Investment Assumptions
Outstanding Loans
Children's Future
Results
Retirement Savings Growth
How the Retirement Calculator Works: Example Scenario
**Example Scenario:**
– **Current Age:** 30 years
– **Retirement Age:** 65 years
– **Current Monthly Spend:** ₹50,000
– **Current Savings:** ₹500,000
– **Monthly Contribution:** ₹10,000
– **Expected Return:** 12%
– **Inflation Rate:** 6%
– **No Loans**
– **No Children’s Expenses**
**Step-by-Step Calculation:**
1. **Basic Time Calculations:**
– **Years to Retirement:** 65 – 30 = **35 years**
– **Post-Retirement Years:** 90 (life expectancy) – 65 = **25 years**
2. **Real Rate of Return:**
– **Real Return:** (1 + 12%) / (1 + 6%) – 1 ≈ **5.66%**
*(Accounts for inflation’s effect on investment returns)*
3. **Retirement Corpus Calculation:**
– **Current Monthly Expenses:** ₹50,000
– **Yearly Expenses:** ₹50,000 × 12 = **₹600,000**
– **Future Yearly Expenses:** ₹600,000 × (1 + 6%)^35 = **₹4,131,477** *(adjusted for inflation)*
– **Required Corpus:** ₹4,131,477 × ((1 – (1 + 5.66%)^-25) / 5.66%) ≈ **₹59,891,234**
4. **Current Savings Growth:**
– **Current Savings (₹500,000) will grow to:**
₹500,000 × (1 + 5.66%)^35 ≈ **₹4,831,425**
5. **Shortfall Calculation:**
– **Shortfall:** ₹59,891,234 – ₹4,831,425 ≈ **₹55,059,809**
6. **Monthly Savings Required:**
– **Monthly Required:** (₹55,059,809 × 5.66%) / ((1 + 5.66%)^35 – 1) / 12 ≈ **₹37,892**
**Key Takeaways:**
– **You need approximately ₹6 crores at retirement.**
– **Your current savings will grow to about ₹48 lakhs.**
– **You have a shortfall of about ₹5.5 crores.**
– **To achieve this, you need to save ₹37,892 monthly (instead of your current ₹10,000).**
**Additional Features of the Calculator:**
– Considers additional expenses like loans (if any).
– Accounts for children’s education and marriage costs (if any).
– Provides a **growth projection chart** comparing your savings trajectory with the target amount.
– Generates a **PDF report** with structured tables and visual graphs for better understanding.
This streamlined format makes it easier to follow the calculations and understand the results.