Retirement Pension Calculator
Estimate the total retirement corpus needed to generate your desired fixed monthly income.
Retirement Income Details (₹)
Target income you need per month in retirement.
Expected return on your corpus after you retire.
From retirement age to life expectancy.
Required Retirement Corpus (PV)
—
₹
Financial Breakdown
| Total Cash Withdrawn: | — |
|---|---|
| Total Expected Interest Earned: | — |
Calculating Your Retirement Corpus
The **Pension Calculator** solves for the **Present Value (PV)**—the lump sum corpus you need on the day you retire—to ensure that it can generate a fixed **Monthly Pension** for the entire duration of your retirement. This uses the principle of the Present Value of an Annuity.
Present Value (PV) of Annuity Formula
The required corpus is calculated by discounting all future required pension payments back to the retirement start date:
$$PV = \text{PMT} \cdot \frac{1 – (1 + i)^{-n}}{i}$$ Where: $\text{PMT}$ is the Monthly Pension, $i$ is the Monthly Rate, and $n$ is the Total Months in retirement.
The Impact of Inflation (FAQ)
Should I adjust my return rate for inflation?
Yes, absolutely. The **Withdrawal Rate** you enter ($\mathbf{7\%}$ in the example) should be your **real rate of return** (Investment Return – Inflation Rate). If you expect your investments to grow $9\%$ but inflation is $6\%$, you should enter $3\%$ here to ensure your pension maintains its purchasing power.