Retirement Calculator
Project your total retirement corpus based on your current age, retirement age, existing savings, monthly contributions, and expected annual return.
How Is Retirement Corpus Calculated? (Formula)
Growth of Monthly Contributions = Monthly Amount × [((1+i)n − 1) / i] × (1+i)
Where: i = Expected monthly return (Annual rate ÷ 12 ÷ 100), n = Months until retirement
Total Retirement Corpus = Growth of Existing Savings + Growth of Monthly Contributions
Step-by-Step Calculation
1. Calculate months remaining until retirement: n = (Retirement Age − Current Age) × 12.
2. Convert expected annual return to a monthly rate: i = Annual Rate ÷ 12 ÷ 100.
3. Grow existing savings using compound interest over n months.
4. Grow monthly contributions using the future value of an annuity formula over n months.
5. Add both amounts together to get the total projected retirement corpus.
Example Calculation
| Input | Value |
|---|---|
| Current Age → Retirement Age | 30 → 60 (30 years) |
| Current Savings | ৳5,00,000 |
| Monthly Contribution | ৳15,000 |
| Expected Annual Return | 10% |
| Growth of Existing Savings | ≈ ৳99,18,700 |
| Growth of Contributions | ≈ ৳3,41,89,880 |
| Total Retirement Corpus | ≈ ৳4,41,08,580 |
Definitions
Retirement Corpus: The total sum of money accumulated by the time a person retires, intended to support their expenses through retirement.
Future Value of an Annuity: The value that a series of equal periodic payments will grow to, given a specified rate of return, at a future date.
Frequently Asked Questions
How is retirement corpus calculated?
Retirement corpus is calculated by growing your current savings at your expected rate of return until retirement, and separately calculating the future value of your regular monthly contributions, then adding the two amounts together.
How much should I save monthly for retirement?
The monthly amount needed depends on your target retirement corpus, years until retirement, and expected rate of return; starting early significantly reduces the monthly amount needed due to compounding.
Does starting retirement savings early make a big difference?
Yes, starting early gives your contributions more time to compound, which can dramatically increase your final retirement corpus even with smaller monthly contributions.
Are the returns used in this calculator guaranteed?
No, the expected annual return is an assumption for projection purposes only; actual investment returns vary and are not guaranteed.
This calculator provides a projection based on constant assumed returns and does not account for inflation, taxes, or fees. It is for planning purposes only and is not financial advice.
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