Retirement Calculator in Excel [DOWNLOAD]

Retirement Calculator in Excel can help you to attain Financial Independence and Retire Early with effective financial planning from the start of your career. You can choose to retire at the age of 40 or 50 and this Retirement Calculator in Excel will let you know the amount of corpus you would need by the age of retirement and also the SIP amount you need to save every month to achieve the goal of accumulating required amount.

Fill below form to Download Retirement Calculator in Excel for FREE:

Table of Contents

Retirement Planning Calculator Video
WHAT IS RETIREMENT CALCULATOR USED FOR?
FACTORS TO BE CONSIDERED TO RETIRE EARLY
HOW RETIREMENT PLANNING CALCULATOR WORKS TO CALCULATE RETIREMENT AMOUNT?
Inflation to consider in Retirement Calculator?
WHAT IS 4% WITHDRAWAL RULE IN RETIREMENT CALCULATOR?
CONCLUSION

Below is the video to understand how this Retirement Planning Calculator in Excel works:

Retirement Planning Calculator Video

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Let us now understand Retirement Planning in detail.

WHAT IS RETIREMENT CALCULATOR USED FOR?

Retirement Planning Calculator can be used to know the amount of savings you need to make every month to retire at a specific age in future
This calculator can be used to plan your early retirement instead of retiring at normal age of 55 or 60 years
Above Retirement Planning Calculator for India also includes Inflation that is increasing with time. You can refer to Cost Inflation Index table here
With the increase in cost, your monthly expenses will also increase and this updated monthly expenses should be considered for your retirement purpose
In this way, Retirement Planning Calculator can help you consider all required factors and accumulate required amount so that you enter in your retirement phase and no longer have to work for money, but instead, your accumulated money works for you and provides you returns or interest income to cover your monthly living expenses

FACTORS TO BE CONSIDERED TO RETIRE EARLY

Below are 3 important factors to retire early:

Monthly Expenses below Income

Your monthly living expenses should be low in order to successfully retire early. Higher the expenses, more time it will take you to accumulate the amount needed to retire.

Ideally your monthly expenses should be lower than monthly income so that you save some amount every month. Higher savings rate is crucial right from the start of your career to retire early.

Increase your Monthly Income

You can try to increase your monthly income in order to reach your financial target before time. If you get the chance to switch your jobs, or get promotion / bonus, every addition of income will count here to increase your savings rate and at the same time controlling your monthly living expenses.

Invest your Savings

It is very important that you invests your savings resulting from low monthly expenses. Higher savings rate can help you to achieve retirement early.

Do not keep money idle in Bank Savings Account that gives around 2.5% to 3% annual interest rate. Instead, start a Fixed Deposit in order to keep emergency funds for next 3 to 6 months and remaining amount should go in good mutual funds for long term to help you retire early.

4% Withdrawal Rule

According to 4% Withdrawal Rule, you should be withdrawing maximum of 4% of your accumulated amount for your yearly expenses.

The idea is to withdraw the amount (4%) lower than the expected returns (10% to 12%) based on the mutual funds selected. This will not only help you cover your monthly / yearly expenses, but also will help your accumulated amount grow with time.

You can also use Online Retirement Planning Calculator here:

HOW RETIREMENT PLANNING CALCULATOR WORKS TO CALCULATE RETIREMENT AMOUNT?

The working of Retirement Planning Calculator in India is quite simple:

You need to provide your current age and expected Retirement age in Retirement Calculator
Next provide your current monthly expenses and the expected rate of inflation in upcoming years
The future monthly expenses will be calculated using current monthly expenses and rate of inflation based on your retirement age
Next you need to provide expected rate of return from mutual funds that can help your money grow over time
Also you need to provide the Saved Amount you have accumulated so far that can be used for your Retirement Planning
Using above input in calculator, you will get the calculated Monthly Savings Needed that you can save via SIP in mutual funds along with Total amount needed that should be your target before Retirement phase

ALSO READ: How to Start SIP Online in Mutual Funds

Inflation to consider in Retirement Calculator?

Ideally you can consider 5% of Inflation, which means the increase in the cost of goods and services you need as part of current monthly expenses.

So let’s say your current monthly expenses is Rs. 30,000, after 20 years due to inflation, this monthly expenses will increase to Rs. 79,600, and this is what we call Inflation – increase in the cost of goods and services you need in your life.

So Inflation is an important part while calculating your long term financial goal of Early retirement which is included in this Retirement Calculator in Excel.

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WHAT IS 4% WITHDRAWAL RULE IN RETIREMENT CALCULATOR?

4% withdrawal rule is one of the popular rule to withdraw systematically from your accumulated corpus amount. According to this rule you should reach your total corpus in such a way that maximum 4% should be withdrawn from your accumulated amount to cover for your monthly expenses.

If the withdrawal covers the expenses and your money also grows automatically than you are ready to retire, and if not than you need to accumulate more for some more years to reach that target or financial goal.

ALSO READ: Rs. 1000 SIP Returns Calculation in Mutual Funds for 15 Years

CONCLUSION

So Retirement Calculator in Excel can help you to know the monthly SIP you should be doing up to the retirement age, to accumulate required amount based on your future expenses, so that you can enjoy your retirement phase without have to work for money.

It does not mean you don’t work at all but you can start up a business in your passion that you always wanted to start or travel around the world provided the expenses are not more than the returns you get from your accumulated amount.

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