There is a point where you can stop putting money in and still retire well. From there your savings grow on their own.
This works out when that point arrives for you. It is usually far earlier than the day you stop working.
About you
Earlier means a bigger corpus and less time to build it.
Including your EMI, household expenses and everything else.
Your provident fund, PPF, NPS and any funds or shares.
Numbers you can change
Before charges and tax. Nobody can promise this. Put in a smaller number and watch what happens.
Taking out 4% a year is the usual rule of thumb. It came from American research, and prices here rise faster, so 3 to 3.5 is the safer choice.
You can stop investing at
age 41
That is 8 years and 11 months from now.
You have ₹15.00 lakh. You need ₹43.13 lakh.
What the number means
Two numbers matter here and they are very different in size.
The corpus is what you need on the day you stop work. It is large and it is decades away.
The other is what you need today for that corpus to arrive on its own. It is much smaller. The years in between do the work.
On the figures this starts with, the corpus is about ₹7 crore. The amount you need today is about ₹43 lakh. Same plan, twenty eight years apart.
Three things worth knowing
- Reaching that amount does not mean stopping. It means you could. Most people carry on. Each month after it either brings the date forward or raises what they can spend.
- Growth is the shakiest number here. The rest is just sums. Drop it from 10% to 8% and watch the age move. If you doubt one number, doubt that one.
- Count your provident fund. Leave it out and the answer comes out years too late.
Now raise the monthly amount and watch the age move. The savings rate calculator shows that in years. The retirement calculator works the same chain backwards.
This calculator is for learning. It is not personal financial advice. Inflation, growth and the amount you take out each year are numbers you choose here. They are not forecasts, and real markets do not move in straight lines. It assumes you keep buying the same things. It assumes your money keeps growing after you stop work. It ignores tax on what you take out. A real plan has to deal with all three. For advice about your own situation, speak to a SEBI-registered investment adviser.