Retirement Corpus Depletion Calculator
See how long your retirement savings can sustain your planned lifestyle, including inflation adjustments.
What is Retirement Corpus Depletion Calculator?
A retirement corpus depletion calculator projects month-by-month and year-by-year portfolio drawdown, factoring in post-retirement portfolio return, annual lifestyle inflation, and lifespan expectations.
Financial calculators are useful because they turn assumptions into numbers you can compare. Instead of guessing, you can test different values for amount, time horizon, expected rate, and goal requirements to understand how the final result changes before you commit.
How this calculator works
Iteratively computes: Balance_(m+1) = Balance_m × (1 + r/12) − Withdrawal_m, where Withdrawal increases annually by inflation. Identifies the exact age when the corpus depletes to zero.
Worked example
A ₹2.5 Crore retirement corpus with an initial monthly withdrawal of ₹80,000 inflating at 6% annually with an 8% portfolio return lasts approximately 26 years (up to age 86 for a 60-year-old).
Most common mistakes people make
- Assuming a flat monthly withdrawal without accounting for 6% to 7% compounding inflation.
- Keeping the entire retirement corpus in bank FDs where post-tax returns trail inflation, accelerating depletion.
- Ignoring sequence of returns risk (experiencing a stock market crash in the first 3 years of retirement).
- Not maintaining a separate emergency medical reserve of ₹15 to ₹25 lakh for senior healthcare costs.
- Withdrawing at an aggressive 5% to 6% rate instead of the sustainable 3% to 3.25% Indian Safe Withdrawal Rate.
Frequently asked questions
Retirement Corpus Depletion Calculator helps you estimate the likely result of a financial decision using standard formulas and the assumptions you enter for amount, rate, duration, and frequency.
The calculator applies the relevant financial formula to your inputs and shows a real-time estimate so you can compare different scenarios before making a decision.
It gives a practical estimate based on standard formulas and assumptions, but actual outcomes can vary with market performance, policy changes, fees, taxes, and changing personal circumstances.
Yes. These calculators are designed for quick planning and comparison, especially when you want to estimate future values, repayments, or coverage needs before locking in a financial choice.
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Disclaimer
Corpus longevity depends on unpredictable market cycles and unexpected medical contingencies. Re-evaluate your withdrawal plan annually with a SEBI-registered advisor.