| Scenario | Age (Now→Retire) | Monthly Income Goal | Monthly Contribution | Return / Inflation | Required Corpus | Suggested Coverage |
|---|---|---|---|---|---|---|
| Conservative | 40→65 | $2,500 | $250 | 5% / 3% | $1,050,000 | $320,000 |
| Balanced | 35→65 | $3,000 | $300 | 7% / 3% | $1,250,000 | $280,000 |
| Growth | 30→65 | $3,800 | $450 | 9% / 3% | $1,420,000 | $240,000 |
| Late Start | 50→67 | $3,200 | $600 | 7% / 3.5% | $1,360,000 | $410,000 |
| Early Retire | 35→60 | $3,500 | $550 | 7.5% / 3% | $1,620,000 | $390,000 |
- Real return: real = (1 + r) / (1 + i) − 1, where r is return and i is inflation.
- Required corpus at retirement: PVreal = P × (1 − (1+real)−N) / real, then Corpus = PVreal × (1+i)Y.
- Projected corpus: FV = Savings × (1+r)Y + PMT × ((1+r/12)12Y − 1)/(r/12).
- Shortfall: max(0, Required − Projected). Surplus is max(0, Projected − Required).
- Life insurance estimate: Coverage ≈ (PV of retirement shortfall + debts + goals + support PV) − (existing coverage + liquid assets).
- Choose your currency, then enter your ages and retirement horizon.
- Add current savings and planned monthly contributions.
- Set realistic return and inflation assumptions for your situation.
- Enter your retirement income goal in today’s money and any expected other income.
- Open advanced fields to include debts, family support, and one-time goals.
- Click Calculate to view results above, then export reports if needed.
Inputs That Drive Your Retirement Target
Start with age, retirement age, and life expectancy to define the timeline. The calculator converts your monthly income goal into an annual need and adjusts it for taxes if selected. It then estimates a real return using expected return and inflation. For example, 7% return and 3% inflation implies about 3.88% real growth, which materially changes the required corpus for a 25-year retirement.
Understanding the Fund Projection
Your projected fund combines current savings growth with the future value of monthly contributions. Monthly compounding captures the effect of steady deposits over time. With $25,000 saved, $300 per month, and 7% expected return for 30 years, the projection can exceed $400,000 from contributions alone, before investment growth on the balance. This helps separate “saving effort” from “market growth.” Higher contributions improve certainty more than chasing returns for most savers today.
Connecting Retirement Shortfall to Insurance
If the projected corpus is below the required corpus, the gap becomes a measurable shortfall at retirement. The calculator also brings that shortfall back to today’s value and adds immediate needs such as debts, final expenses, education goals, and temporary family support. Existing coverage and liquid assets reduce the recommendation. This approach aligns insurance with cash-flow protection instead of picking an arbitrary round number.
Stress-Testing Assumptions With Scenarios
Small assumption changes compound over decades. A 1% lower return can reduce the retirement projection substantially, while 1% higher inflation raises the target. Use the example table to explore conservative, balanced, and growth cases and then create your own. Try increasing contributions by 5–10% annually outside the calculator and compare the new result each year to keep plans realistic and resilient.
Using Outputs for Actionable Decisions
Focus on three outputs: target corpus, projected corpus, and suggested coverage. If there is a shortfall, you can act by raising contributions, delaying retirement, reducing the income goal, or adjusting the asset mix and expected return assumptions. If suggested coverage is high, prioritize term length to retirement and pay down high-interest debt. Export the report to track updates after salary changes or new dependents.
1) What is the required retirement corpus?
It is the estimated account balance you would need at retirement to fund your planned income through life expectancy, considering inflation and your assumed returns.
2) Why does the calculator show a real return?
Real return adjusts investment growth for inflation. It helps compare future income needs using today's purchasing power, so targets are not understated when prices rise.
3) How do taxes change the retirement target?
When enabled, the calculator grosses up your income goal by an estimated retirement tax rate. A higher tax rate increases the annual withdrawal need and raises the required corpus.
4) How is suggested life insurance calculated?
It adds the present value of any retirement shortfall plus debts, final expenses, education goals, and temporary family support. Then it subtracts existing coverage and liquid assets.
5) Where should I enter pension or rental income?
Add it to other monthly income. The calculator reduces the income gap that must be funded by your retirement savings.
6) How often should I update the inputs?
Review at least once per year and after major events such as salary changes, new dependents, debt payoff, or policy updates. Small adjustments early can produce large effects later.