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Retiring on a corpus?

How long will your money pay you?

  • Your savings paying you each month
  • How long the money lasts
  • The withdrawal it can keep up for good
Left after 20 years
₹33.3 L
after paying you ₹96 L
Paid out, after tax
₹92.26 L
₹3.74 L tax on withdrawals
Left, in today's money
₹10.38 L
After a bad start
Runs out in 2040
if markets fall 20% in year one
  • Paid out to you₹96 L74%
  • Still invested₹33.3 L26%

How your corpus pays you

Your inputs

What this means

  • Your money lasts all 20 years, with ₹33.3 L still invested at the end.
    Why?

    The corpus slowly shrinks, but what it earns each month keeps it going to the end.

  • A bad start runs your money out in 2040, 6.5 years early.
    Why?

    Say markets fall 20% in your first year and go nowhere in the second, then earn about 11.9% a year, so the average is still 9%. You sell units while prices are down to pay yourself, and those rupees miss the recovery. The same two bad years at the end would leave ₹69.15 L. The order of returns matters, not just their average.

  • Up to ₹44,986 a month lasts exactly 20 years.
    Why?

    That uses up the whole corpus on time. Stay at or under ₹37,500 a month and the corpus never shrinks, because you only take what it earns.

  • You withdraw 9.6% of the corpus a year.
    Why?

    A common rule of thumb for money that must last decades is 3%–4% a year. Higher rates work for shorter periods or higher returns, which is exactly what the chart tests.

  • Tax takes ₹3.74 L, 3.9% of what you withdraw.
    Why?

    Assumes an equity fund. Only the gain inside each withdrawal is taxed, not your own money coming back, so early withdrawals are almost tax-free. From the second year, gains up to ₹1.25 L a year are tax-free and the rest pays 12.5% plus cess.

  • In 2046, ₹40,000 buys what ₹12,472 buys today.
    Why?

    Prices rise about 6% a year but your withdrawal rises 0%. To keep the whole corpus's buying power, stay under ₹20,977 a month.

More details

How much can you take out?

You take ₹40K
  • Corpus never shrinks
  • Lasts all 20 years
  • Runs out early

How it's calculated

Each month the balance earns a month's return, then your withdrawal comes out:

Bm = Bm−1 × (1 + r/12) − W

W rises by your yearly raise every 12 months. The money runs out when the balance can't cover a full withdrawal. The safe limits solve for the W that leaves exactly ₹0 (lasts the full period) or your starting corpus (never shrinks) at the end.

Returns are shown before tax. Mutual fund withdrawals are taxed only on the gains part of each withdrawal.

Tax figures follow Budget 2025 rules, for FY 2025-26 onward.

Common questions

What is an SWP?
A systematic withdrawal plan redeems a fixed amount from a mutual fund every month. The rest stays invested and keeps earning, so the corpus can pay you for much longer than a savings account would.
How much can I withdraw safely?
If you only take out what the corpus earns, it never shrinks. For money that must last decades, many planners suggest starting at 3% to 4% of the corpus a year. The calculator shows both limits for your numbers.
Should my withdrawal rise every year?
If you live on it, yes. Prices rise every year, so a fixed withdrawal buys less over time. A yearly raise protects your lifestyle, but it runs the corpus down faster.
SWP or fixed deposit interest?
FD interest is taxed every year at your slab. With an equity or hybrid fund SWP, only the gains in each withdrawal are taxed, often at lower rates, but the value can fall in bad years.