Monthly Retirement Income Calculator

You have a corpus — or expect to have one. This shows the monthly income it can support, rising with inflation, without running out before you planned.

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How to use this calculator

  1. Enter retirement corpus — The total you will have on the day you retire.
  2. Enter years the money must last
  3. Enter return during retirement — Usually lower than before retirement — the money is invested more conservatively.
  4. Enter expected inflation
  5. Read the result — it updates as you type.

The formula used

Income = Corpus ÷ [ (1 − (1 + rreal)−n) ÷ rreal ]

Corpus
What you have at retirement
n
Months the money must last
r_real
Monthly real return = (1 + return) ÷ (1 + inflation) − 1

This is the retirement corpus formula solved for the income instead of the corpus. Using the real return means the answer is an income that rises with inflation — the first month is the smallest payment you will take.

Worked example

A corpus of ₹2 crore, to last 25 years, earning 8% with 6% inflation.

  • Real return(1.08 ÷ 1.06) − 1 = 1.887% a year
  • Annuity factor≈ 239.45 for 300 months
  1. Income = ₹2,00,00,000 ÷ 239.47 = ₹83,517 a month
  2. By year 25 that payment has grown to about ₹3.4 lakh a month

The first-year withdrawal rate is about 5% — higher than the often-quoted 4% rule, which is one reason to treat this as a plan to review, not a promise.

Turning a corpus into an income

The hard part of retirement is not building the pot — it is deciding how much you can safely take out of it each month without running dry.

Why the income must rise

A fixed ₹80,000 a month sounds fine until year fifteen, when it buys what ₹33,000 buys today. This calculator increases the withdrawal every year so your actual lifestyle stays constant. That is why the first-year figure looks modest relative to the corpus.

The 4% rule, and its limits

A widely quoted guideline is to withdraw about 4% of the corpus in the first year and raise it with inflation. It came from historical studies of long retirements and is a useful sanity check — if this calculator shows a first-year rate well above 4%, your plan depends heavily on the return assumption holding.

The risk this model cannot show

Sequence risk: a poor market in the first few years of retirement does lasting damage, because you are selling assets while they are cheap. Keeping two to three years of expenses in safe, liquid assets is the usual defence.

Tips and common mistakes

Getting more out of it

  • Compare your first-year withdrawal rate against the widely discussed 3–4% guideline shown alongside it.
  • Keep two or three years of income in safe assets so a market fall never forces a sale.

Mistakes to avoid

  • Planning a flat monthly income, which quietly cuts your standard of living every year.
  • Ignoring tax. Withdrawals, interest and annuity income are taxed differently from each other.
  • Assuming a steady return. A poor first few years does disproportionate damage once you are withdrawing.

Frequently asked questions

How much monthly income will ₹1 crore give?

Enter it above with your own assumptions. As a rough guide, over 25 years at 8% returns and 6% inflation, ₹1 crore supports roughly ₹41,750 a month rising with inflation — but the answer moves a lot with those two rates.

Why does the income rise every year?

So its buying power stays the same. Holding the rupee amount constant would quietly reduce your standard of living every single year.

What is a safe withdrawal rate?

Commonly cited figures are 3–4% of the corpus in the first year. Above that, the plan depends on returns cooperating. The results panel shows your rate for comparison.

Is this income taxable?

It depends where the money comes from. Withdrawals from mutual funds are partly capital gains, annuity income is usually taxed as income, and interest is taxed at your slab rate. Plan for tax on top of your expenses.

Retirement Corpus Calculator

Size of the corpus required for a target yearly spend.

Retirement Retirement Calculator

Corpus you need at retirement and the SIP to get there.

Retirement SWP Calculator

How long a corpus lasts with a systematic withdrawal plan.

Mutual Funds Inflation Calculator

What today’s money will be worth after inflation.

Tax & Inflation FD Calculator

Maturity value of a fixed deposit with compounding.

Fixed Income Inflation-Adjusted Return Calculator

Your real return once inflation is removed.

Tax & Inflation
Disclaimer: These calculators are for educational and informational purposes only. Results are estimates based on the inputs provided and should not be considered financial, investment, tax, or legal advice.