Monthly Pension from ₹1 Cr
How much monthly pension can a ₹1 Crore corpus generate?
About the Monthly Pension from ₹1 Cr
The Monthly Pension from ₹1 Cr models a Systematic Withdrawal Plan — the reverse of a SIP — that lets your retirement corpus deliver a monthly pension while the remaining balance continues to compound. SWP is the standard mechanism Indian retirees use to draw income from mutual fund corpora in a tax-efficient way, because each withdrawal triggers LTCG on only the gains portion, not the entire amount.
How the Monthly Pension from ₹1 Cr works
- Enter your starting corpus, the monthly withdrawal you want, the expected return on the remaining balance and the duration.
- The calculator deducts your withdrawal each month and grows the remainder at the assumed CAGR.
- It shows how many years the corpus lasts and the residual balance at the end of the period.
- Run scenarios with different withdrawal amounts to find a sustainable rate.
Inputs explained
Formula
Each month: balance = (previous balance − withdrawal) × (1 + monthly return) Corpus lasts until balance ≤ 0.
Worked example
A ₹1 Cr corpus drawing ₹50,000/month at 8% return lasts roughly 30 years — a 6% withdrawal rate. Drop the withdrawal to ₹40,000 and the corpus lasts indefinitely.
India-specific notes
- •Only the capital-gains portion of each SWP withdrawal is taxable — typically 70-85% of withdrawals in early years are tax-free principal.
- •Equity funds: LTCG 12.5% above ₹1.25L/year on gains. Debt funds (post 1 Apr 2023): full slab-rate tax.
- •Hybrid (aggressive) funds with >65% equity get equity taxation — popular for SWP.
- •SWP is more tax-efficient than dividend plans — dividends are taxed at slab rate without indexation.
Tips to maximise this calculator
- →Use a 3-bucket approach: 2 years' withdrawals in liquid funds, 3-5 years in hybrid, rest in equity.
- →Skip SWP during the first year of a market crash — withdraw from the liquid bucket instead.
- →Increase your SWP by 6% annually to maintain real purchasing power against inflation.
Common mistakes to avoid
- ✕Picking too high a withdrawal rate — anything above 6% on a 30-year horizon risks running out.
- ✕Drawing from equity in a bear market — locks in losses via sequence-of-returns risk.
- ✕Confusing SWP with dividend option — dividends are riskier from a tax angle.
Glossary
- SWP
- Systematic Withdrawal Plan — auto-redemption of fund units to a bank account monthly.
- Bucket strategy
- Splitting corpus by liquidity need to manage withdrawal risk.
- Sequence risk
- Poor early-retirement returns disproportionately damage corpus longevity.
- Cost basis
- Original purchase price used to compute capital gains on each redemption.
Frequently asked questions
Is the Monthly Pension from ₹1 Cr free to use?
Yes. The Monthly Pension from ₹1 Cr is free, runs in your browser and never stores personal data.
Are the assumptions India-specific?
Yes. We use INR, Indian inflation and India-specific rates (PPF, EPF, FY 2026-27 tax slabs where applicable).
Is this investment advice?
No. This tool is for education. Consult a SEBI registered advisor before investing.