What is the Pension Calculator?
The pension calculator is a free online tool that helps you work out pension quickly and accurately. It uses the standard formula Future monthly expense grows with inflation; corpus = 25x annual expense (4% rule); SIP solves for that corpus. and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter your age and target retirement age.
- Enter current monthly expenses.
- Enter inflation and expected return.
- See the corpus and monthly SIP needed.
Formula used
Future monthly expense grows with inflation; corpus = 25x annual expense (4% rule); SIP solves for that corpus.Explanation of each input
- Current age (years) โ the current age used in the calculation.
- Retirement age (years) โ the retirement age used in the calculation.
- Current monthly expense โ the current monthly expense used in the calculation.
- Inflation (%) โ the inflation used in the calculation.
- Pre-retirement return (%) โ the pre-retirement return used in the calculation.
Understanding your result
- Corpus needed at retirement โ the calculated corpus needed at retirement.
- Monthly SIP required โ the calculated monthly sip required.
Step-by-step calculation
For the example values Age 30 to 60, 50000/month:
- Apply the formula:
Future monthly expense grows with inflation; corpus = 25x annual expense (4% rule); SIP solves for that corpus. - Substitute the values: Inflate expense, apply 4% rule, solve SIP
- Result: Required corpus and SIP (illustrative)
Worked example
| Inputs | Age 30 to 60, 50000/month |
|---|---|
| Working | Inflate expense, apply 4% rule, solve SIP |
| Result | Required corpus and SIP (illustrative) |
Benefits and practical uses
This calculator saves you time and reduces errors when you need pension. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- 4% safe-withdrawal rule.
- Constant inflation and return.
- Excludes existing savings and pensions.
Frequently asked questions
What is the 4% rule?
A guideline that you can withdraw about 4% of your retirement corpus each year, so the corpus is roughly 25x annual expenses.