SWP calculator
If the amount stayed at ₹1,00,000 for all 30 years instead of rising, the money needed would be ₹1.41 crore. Letting it rise with prices adds ₹1.28 crore, which is the cost of keeping the same buying power.
| Assumed growth | 15 years | 20 years | 25 years | 30 years | 35 years | 40 years |
|---|---|---|---|---|---|---|
| 5% a year | ₹1.88 crore | ₹2.57 crore | ₹3.3 crore | ₹4.05 crore | ₹4.85 crore | ₹5.68 crore |
| 6% a year | ₹1.75 crore | ₹2.34 crore | ₹2.92 crore | ₹3.51 crore | ₹4.09 crore | ₹4.67 crore |
| 7% a year | ₹1.64 crore | ₹2.13 crore | ₹2.6 crore | ₹3.06 crore | ₹3.49 crore | ₹3.9 crore |
| 8% a year | ₹1.53 crore | ₹1.95 crore | ₹2.34 crore | ₹2.69 crore | ₹3 crore | ₹3.29 crore |
| 9% a year | ₹1.43 crore | ₹1.79 crore | ₹2.11 crore | ₹2.38 crore | ₹2.61 crore | ₹2.82 crore |
| 10% a year | ₹1.35 crore | ₹1.65 crore | ₹1.91 crore | ₹2.12 crore | ₹2.3 crore | ₹2.44 crore |
| 12% a year | ₹1.2 crore | ₹1.42 crore | ₹1.59 crore | ₹1.72 crore | ₹1.82 crore | ₹1.89 crore |
Same monthly amount and 6% yearly rise as above. Lower growth needs far more money than higher growth, and the gap widens the longer the money has to last.
| Year | Monthly amount | Taken out | Growth earned | Balance at year end |
|---|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹12,00,000 | ₹20,97,131 | ₹2,77,53,632 |
| Year 2 | ₹1,06,000 | ₹12,72,000 | ₹21,65,819 | ₹2,86,47,450 |
| Year 3 | ₹1,12,360 | ₹13,48,320 | ₹22,34,056 | ₹2,95,33,186 |
| Year 4 | ₹1,19,102 | ₹14,29,219 | ₹23,01,450 | ₹3,04,05,417 |
| Year 5 | ₹1,26,248 | ₹15,14,972 | ₹23,67,556 | ₹3,12,58,001 |
| Year 6 | ₹1,33,823 | ₹16,05,871 | ₹24,31,870 | ₹3,20,84,001 |
| Year 7 | ₹1,41,852 | ₹17,02,223 | ₹24,93,824 | ₹3,28,75,602 |
| Year 8 | ₹1,50,363 | ₹18,04,356 | ₹25,52,779 | ₹3,36,24,024 |
| Year 9 | ₹1,59,385 | ₹19,12,618 | ₹26,08,016 | ₹3,43,19,423 |
| Year 10 | ₹1,68,948 | ₹20,27,375 | ₹26,58,734 | ₹3,49,50,782 |
| Year 11 | ₹1,79,085 | ₹21,49,017 | ₹27,04,033 | ₹3,55,05,798 |
| Year 12 | ₹1,89,830 | ₹22,77,958 | ₹27,42,913 | ₹3,59,70,753 |
| Year 13 | ₹2,01,220 | ₹24,14,636 | ₹27,74,256 | ₹3,63,30,373 |
| Year 14 | ₹2,13,293 | ₹25,59,514 | ₹27,96,822 | ₹3,65,67,681 |
| Year 15 | ₹2,26,090 | ₹27,13,085 | ₹28,09,230 | ₹3,66,63,826 |
| Year 16 | ₹2,39,656 | ₹28,75,870 | ₹28,09,950 | ₹3,65,97,906 |
| Year 17 | ₹2,54,035 | ₹30,48,422 | ₹27,97,287 | ₹3,63,46,771 |
| Year 18 | ₹2,69,277 | ₹32,31,327 | ₹27,69,364 | ₹3,58,84,807 |
| Year 19 | ₹2,85,434 | ₹34,25,207 | ₹27,24,104 | ₹3,51,83,704 |
| Year 20 | ₹3,02,560 | ₹36,30,719 | ₹26,59,215 | ₹3,42,12,200 |
| Total | ₹4,41,42,709 | ₹5,14,98,409 |
Balance at year end = the balance a year earlier − taken out + growth earned. The last row of a plan that runs out is a part year.
| Assumed growth | How long it lasts | Money needed for 30 years |
|---|---|---|
| 6% a year | 17 years 1 month | ₹3.51 crore |
| 8% a year (yours) | 20 years 7 months | ₹2.69 crore |
| 10% a year | 27 years | ₹2.12 crore |
Real portfolios do not grow smoothly. Withdrawals taken while prices are low use up more of the money, so a plan can run out sooner than a smooth rate suggests. Past performance does not indicate future results.
| Year | Monthly amount | Taken out | Growth earned | Balance at year end |
|---|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹12,00,000 | ₹15,48,611 | ₹2,03,48,611 |
| Year 2 | ₹1,06,000 | ₹12,72,000 | ₹15,73,417 | ₹2,06,50,028 |
| Year 3 | ₹1,12,360 | ₹13,48,320 | ₹15,94,262 | ₹2,08,95,970 |
| Year 4 | ₹1,19,102 | ₹14,29,219 | ₹16,10,473 | ₹2,10,77,224 |
| Year 5 | ₹1,26,248 | ₹15,14,972 | ₹16,21,301 | ₹2,11,83,553 |
| Year 6 | ₹1,33,823 | ₹16,05,871 | ₹16,25,915 | ₹2,12,03,596 |
| Year 7 | ₹1,41,852 | ₹17,02,223 | ₹16,23,392 | ₹2,11,24,765 |
| Year 8 | ₹1,50,363 | ₹18,04,356 | ₹16,12,712 | ₹2,09,33,121 |
| Year 9 | ₹1,59,385 | ₹19,12,618 | ₹15,92,744 | ₹2,06,13,247 |
| Year 10 | ₹1,68,948 | ₹20,27,375 | ₹15,62,240 | ₹2,01,48,112 |
| Year 11 | ₹1,79,085 | ₹21,49,017 | ₹15,19,820 | ₹1,95,18,915 |
| Year 12 | ₹1,89,830 | ₹22,77,958 | ₹14,63,962 | ₹1,87,04,919 |
| Year 13 | ₹2,01,220 | ₹24,14,636 | ₹13,92,989 | ₹1,76,83,272 |
| Year 14 | ₹2,13,293 | ₹25,59,514 | ₹13,05,053 | ₹1,64,28,812 |
| Year 15 | ₹2,26,090 | ₹27,13,085 | ₹11,98,120 | ₹1,49,13,847 |
| Year 16 | ₹2,39,656 | ₹28,75,870 | ₹10,69,952 | ₹1,31,07,929 |
| Year 17 | ₹2,54,035 | ₹30,48,422 | ₹9,18,089 | ₹1,09,77,596 |
| Year 18 | ₹2,69,277 | ₹32,31,327 | ₹7,39,830 | ₹84,86,099 |
| Year 19 | ₹2,85,434 | ₹34,25,207 | ₹5,32,207 | ₹55,93,099 |
| Year 20 | ₹3,02,560 | ₹36,30,719 | ₹2,91,966 | ₹22,54,346 |
| Total | ₹4,41,42,709 | ₹2,63,97,056 |
Balance at year end = the balance a year earlier − taken out + growth earned. The last row of a plan that runs out is a part year.
How it is worked out
The calculation runs month by month. At the start of each month the withdrawal is taken out, then the rest grows at the monthly equivalent of the yearly rate you enter. Once a year the withdrawal is raised by the percentage you enter for rising prices.
The money needed is the sum of every future withdrawal brought back to today at the growth rate: each month's amount divided by the growth factor for the months until it is paid. It is the starting balance that leaves close to nothing after the last withdrawal. For a given sum, the calculator runs the same months forward until the balance can no longer pay the month's amount.
Growth is smooth here, with no falls. Tax, fund charges and the order in which gains and losses arrive are not included. The figures are arithmetic on your assumptions, not a forecast and not advice.
Questions
How much money is needed to take out ₹1 lakh a month?
It depends on how long, how fast the money grows and whether the amount rises with prices. On the calculator's starting assumptions (8% yearly growth, the amount rising 6% a year, 30 years) it comes to about ₹2.69 crore. If the amount stayed at ₹1 lakh for the 30 years it would be about ₹1.41 crore. Change any of the four inputs to see how much each one moves the figure.
What is the 4% rule, and how does it compare?
The 4% rule says a first-year withdrawal of 4% of the money, raised each year for prices, has historically lasted about 30 years in US data. For ₹12 lakh a year that is 25 times, or ₹3 crore. It is a rule of thumb from one country's history, not a promise; the calculator works from the growth rate you enter instead.
Why does the amount rise each year in the calculation?
Because ₹1 lakh buys less every year. At 6% a year, the ₹1 lakh needed today becomes about ₹5.4 lakh a month in year 30 to buy the same things. Leaving the rise out understates the money needed, which is why the page also shows the flat figure for comparison.
Is the growth rate a forecast?
No. It is a number you choose to see what follows from it. Real investments rise and fall, and a plan that sells units during a fall uses up money faster than a smooth rate suggests. The table of other growth rates shows how sensitive the answer is.
Is tax included?
No. Withdrawals from mutual funds are taxed on the gain part only, at rates that depend on the type of fund and how long units were held. See the SWP guide for how that works. Tax lowers the amount you keep from each withdrawal.
Educational calculator only, not financial, tax or investment advice. Results follow the formulas and the assumptions you enter; actual amounts depend on your lender, bank, employer and the rules that apply to you. Past performance does not indicate future results. Read the Disclaimer.