This calculator demonstrates one of the most powerful concepts in finance: compounding. It’s the process where your investment returns themselves start earning returns. The longer your money has to grow, the more significant the impact of compounding becomes. This is why starting to save for retirement early, even with small amounts, can lead to a much larger corpus than starting later with larger contributions.

The calculator uses standard financial formulas (Time Value of Money) to determine your required monthly savings (SIP):

• First, it calculates the future value of your current savings, projecting how much it will grow by your retirement age based on the expected return.
• Next, it subtracts this amount from your desired corpus to find out the remaining amount you need to accumulate.
• Finally, it calculates the monthly SIP required to build this remaining corpus over your investment horizon (from your current age to retirement age).

This calculator provides an estimate for informational purposes ONLY and is not financial advice.

The results are highly dependent on the “Expected Return” you enter, which is not guaranteed and can fluctuate with market conditions. This model does not account for inflation, taxes, or changes in your financial situation. It is essential to consult with a qualified financial advisor to create a personalized retirement plan that suits your specific needs and risk appetite.