Retirement Corpus Calculator
Enter retirement monthly expenses, inflation, years in retirement, and investment return to estimate the retirement corpus needed.
Input Data
Results
At a glance:The retirement corpus is the present value of inflated future withdrawals, grown at the post-retirement return over the retirement period.
Formula
firstYearExpense = monthlyExpenseToday × (1 + inflationRate%)^yearsInRetirement
requiredCorpus ≈ firstYearExpense × 12 × ((1 − (1+g)^−n·(1+r)^n) / (r − g)) (g = inflation, r = return)
How to Use
- Enter the monthly expense, inflation, and retirement years.
- Enter the post-retirement return.
- Review the required corpus and first-year expense.
FAQ
What is the 4% rule, and how does this relate to it?
The traditional 4% rule says you withdraw 4% of your portfolio in the first retirement year and adjust for inflation afterwards; studies suggest a 30-year success rate is high. This tool uses the more general annuity formula; with a return around 4% and inflation close to it, the result is similar (roughly 25 times the first-year expense).
Why is the required corpus so large?
Because it must support decades of spending while beating inflation, the corpus must be far larger than the first-year expense. At 4% return and 2.5% inflation, you need roughly 25–28 times the annual expense. This is precisely why early planning and compounding matter.
What return rate is reasonable to assume?
Retirement portfolios lean conservative (stock-bond mix); long-term real returns are roughly 3%–5% nominal. Overly high assumptions understate risk — use a conservative 3%–4% and leave a safety buffer.
Do my own home or MPF count?
MPF is part of your corpus; a self-occupied home generates no cash flow (unless via reverse mortgage). This tool calculates the investment corpus that 'produces passive income'; rent or an annuity can reduce the required amount.
Should I count inflation before retirement too?
This tool simplifies by treating the entered monthly expense as the first-year retirement value. If you want to roll 'today's expense' forward to retirement (with N more years), first use the inflation-adjustment calculator to get the first-year expense, then enter it here.
Why might the result differ a lot from reality?
This tool is a mathematical estimate that excludes tax, sudden medical costs, longevity risk and market volatility. Practically, allow a 10%–20% buffer or consult a financial adviser.
Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.