Work out target corpus instantly with clear inputs, formula shown and shareable results.
The corpus you need is the inflated annual expense divided by the rate you can safely withdraw. A 4% withdrawal rate implies 25 times expenses, and every point of inflation over a long horizon raises that requirement sharply.
Target corpus
Corpus = Expense × (1+inflation)^years / withdrawal rate
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because the corpus must fund spending indefinitely. The reciprocal of the safe rate is the multiple of expenses required.
It came from US historical data over 30 years. Longer retirements or lower expected returns argue for 3-3.5%.