Retirement Corpus Calculator
Enter your monthly spending today, years to retirement and a few assumptions to estimate the pot you may need and the monthly saving to build it.
Illustrative estimate, not financial advice.
- Corpus needed at retirement
- $1,510,485
- Monthly saving needed
- $1,723.28
- Monthly spending at retirement
- $6,281
- Real return in retirement
- 1.94%
Spending $3,000 a month today, with 3% inflation, you would need about $1,510,485 in 25 years to fund 25 years of retirement, which means saving about $1,723.28 a month.
Illustrative estimate, not financial advice.
Assumptions
- Constant inflation and constant returns; real markets vary widely.
- Spending keeps rising with inflation through retirement and is withdrawn at the start of each year.
- No pension, social security, tax, healthcare shocks or lump-sum needs.
- Deposits are monthly, at the end of each month.
Illustrative estimate, not financial advice. Results are shown before tax and fees unless stated.
What the retirement corpus calculator does
This is a simple planning estimate. It inflates today's monthly spending to the day you retire, finds the pot that could pay that inflating spending for the retirement years, then the monthly saving needed to build the pot.
How it is calculated
Spending at retirement = monthly spending x (1 + inflation)^years. Real return g = (1 + return after retirement) / (1 + inflation) - 1. Corpus = yearly spending x (1 - (1 + g)^-N) / g x (1 + g) for N retirement years, withdrawing at the start of each year (g = 0 gives yearly spending x N). Monthly saving uses the savings-goal formula at the pre-retirement return.
Worked example
Spending $3,000 a month today, with 3% inflation, you would need about $1,510,485 in 25 years to fund 25 years of retirement, which means saving about $1,723.28 a month.
Questions and answers
How much do I need to retire?
It depends on spending, inflation, returns and how long retirement lasts. This estimate turns those assumptions into one pot size you can compare.
Why does inflation matter so much?
Prices rise every year, so the same lifestyle costs much more by retirement. The estimate grows today's spending by inflation for the years you have left.
What return should I assume after retirement?
Most people hold safer assets in retirement, so a lower return than before retirement is usual. Try a cautious value.
Can I rely on this?
No. It is a rough planning aid with simple assumptions. A licensed adviser can account for your tax, income and risks.