Systematic Withdrawal Planning

Corpus to Monthly Income Calculator

Estimate the sustainable, inflation-adjusted monthly income your existing corpus can generate across your chosen investment horizon, while the remaining balance continues compounding.

Sustainable Monthly Cashflow

Starting Monthly Income (Year 1 Purchasing Power)

₹ 13,889 / month

Initial monthly payout sustained across 30 years with withdrawals increasing by 6.0% inflation annually to maintain purchasing power, while the remaining corpus compounds at 6.0% CAGR (Real Return: 0.0%). By Year 30, your monthly payout will grow to ₹ 75,255 / month.

Annual Payout & SWR

Year 1 Annual Withdrawal (Initial SWR)

₹ 1,66,667 / year

Initial Safe Withdrawal Rate is 3.33% of your ₹ 50,00,000 (₹ 50 lakh) corpus. Cumulative Lifetime Payout across 30 years: ₹ 1,31,76,364 (₹ 1 crore, 31 lakh and 76 thousand).

Total Corpus ₹ 50,00,000

Target Horizon 30 Years

Portfolio Return 6.0% CAGR

Inflation Rate 6.0%

Real Return 0.0%

Initial SWR 3.33%

Monthly Income ₹ 13,889

Corpus & Distribution Parameters

All monetary values in INR

Available Corpus Amount

₹

Total portfolio or accumulated savings (e.g. 5000000 for 50 Lakhs).

Desired Duration to Last

Years

Number of years this corpus must provide monthly income.

Annualized Inflation Rate

Rate at which withdrawals increase annually (RBI target: 4% ± 2%).

Expected Annual Portfolio Return

% CAGR

Defaults to inflation rate (6.0%) for conservative 0% real return.

Projected Cashflow Milestones

Milestone Year	Monthly Income	Annual Withdrawal	Remaining Portfolio Balance
Year 1 (Start)	₹ 13,889 / mo	₹ 1,66,667	₹ 51,23,333
Year 5	₹ 17,534 / mo	₹ 2,10,413	₹ 55,75,940
Year 10	₹ 23,465 / mo	₹ 2,81,580	₹ 59,69,492
Year 15	₹ 31,401 / mo	₹ 3,76,817	₹ 59,91,395
Year 20	₹ 42,022 / mo	₹ 5,04,267	₹ 53,45,226
Year 25	₹ 56,235 / mo	₹ 6,74,822	₹ 35,76,559
Year 30 (End)	₹ 75,255 / mo	₹ 9,03,065	₹ 0

Shows monthly income growing with inflation while remaining principal compounds until exact depletion at Year 30.

Core Calculation Assumptions

Inflation Indexing: Monthly withdrawals step up annually with inflation (6.0%) so that purchasing power remains constant over the 30-year horizon.
Post-Retirement Return & Compounding: Principal not yet withdrawn remains fully invested and compounds at your expected return rate (6.0% CAGR, defaulting to inflation rate of 6.0% for a conservative 0% real return).
Depletion Horizon: The mathematical model calculates withdrawals so that the balance precisely reaches ₹ 0 at the end of 30 years (zero bequest target).
Taxes & Management Expenses: Returns and withdrawal amounts are pre-tax and do not deduct capital gains tax, STCG/LTCG, dividend taxes, or asset management fees.
Constant Rate Simplification: Compounding assumes consistent annual inflation and investment returns without accounting for market drawdowns, volatility, or sequence of returns risk.
Emergency & Medical Reserves: Assumes separate contingency reserves exist for non-recurring medical emergencies or one-off capital expenses.

Market Realities & Investor Prudence Checklist

Developed equity markets have experienced flat/negative real returns for 20+ years (as seen in France and Japan).
Safe-haven assets like Gold can experience extended multi-year drawdowns.
There are multi-year periods where high-quality equities (Nifty) fail to beat inflation.
Sequence of Returns Risk: Severe market downturns during the early withdrawal years can deplete your corpus significantly faster than average long-term returns predict.
Mutual funds and equity investments do not provide guaranteed returns or capital protection.
Asset allocation cushions volatility but cannot eliminate systemic market drawdowns.
This calculator provides mathematical estimates based purely on user inputs, with no guarantees of accuracy or adequacy.

Please read and understand assumptions and checklist before checking the box.

Corpus to Monthly Income Calculator

Corpus & Distribution Parameters

Recommended Reading & Foundational Resources