A corpus, a monthly withdrawal and a return. See the balance each year, the year the money runs out, a monthly amount that lasts the period you choose, and tax on the gain inside each redemption.
Treated as money you already hold. Growth after today is the gain.
₹
₹1 Lakh₹3 Lakh₹20 Lakh₹1.4 Cr₹10 Cr
Treated as money you already hold. Growth after today is the gain.
Paid at the end of each month, after that month's growth.
₹
₹0₹78,000₹1.8 Lakh₹4.3 Lakh₹10 Lakh
Paid at the end of each month, after that month's growth.
Split across the 12 months. It is a rate you type, not a fund's past return.
0.0%5.0%10.0%15.0%20.0%
Split across the 12 months. It is a rate you type, not a fund's past return.
The safe withdrawal below is the amount that lasts this long.
1 year11 years21 years30 years40 years
The safe withdrawal below is the amount that lasts this long.
From the second year, the monthly amount rises by this percent.
0.0%2.5%5.0%7.5%10.0%
From the second year, the monthly amount rises by this percent.
Equity tax uses 12.5% on long-term gains above ₹1,25,000 in a year of this plan. The corpus is treated as already held for more than 12 months.
Money left at the end
Left ₹1.99 CrLeft₹1.99 Cr
You take out ₹2,16,00,000 in all. At the end of year 30 the balance is ₹1,99,35,730.
Total withdrawn
₹2,16,00,000₹2,16,00,000
Every monthly payment, before tax
Safe monthly withdrawal
₹73,376₹73,376
Lasts 30 years at 8%
Estimated tax
₹12,75,252₹12,75,252
Only the gain inside each redemption
Balance at the end
₹1,99,35,730₹1,99,35,730
Still invested
The starting corpus is the cost. Tax is only on the gain in what you redeem. The ₹1,25,000 equity exemption is applied once in each year of this plan, not on the April tax year. Capital gains has the wider rules.
Each month the corpus grows by one-twelfth of the yearly return, then the withdrawal is paid. A step-up raises the monthly amount from the second year. If a withdrawal is larger than the balance, the fund pays what is left and stops. The year that happens is the year the money runs out.
The safe monthly figure is the largest starting withdrawal, in whole rupees, that still leaves the fund standing at the end of the period. If you have typed a step-up, that rise is included.
A worked example
₹1,00,00,000 paying ₹60,000 a month, at 8% a year with no step-up, for 30 years. You withdraw ₹2,16,00,000 in all. The money does not run out. At the end the balance is ₹1,99,35,730. A monthly withdrawal of ₹73,376 is the amount that lasts the full 30 years at this return. Tax on the gain inside the redemptions is ₹12,75,252.
Raise the withdrawal, or cut the return, and the table shows the year the balance hits zero. The 8% figure is a rate you can change. It is not a fund’s past return.
Tax on what you redeem
The starting corpus is treated as its cost. Only growth after that is a gain. Each redemption takes a slice of the remaining cost first, which is one lot, oldest first. Equity redemptions are treated as already held for more than 12 months, so the gain is long-term: 12.5% above ₹1,25,000 in a year of this plan, plus 4% cess. The exemption here follows the plan year, not the April tax year. A debt fund is taxed at the slab you pick, on the gain only.
This is an estimate for learning, not advice. Read the disclaimer.
Questions
What is a safe monthly withdrawal here?
It is the starting monthly amount that uses up the corpus at the end of the years you picked, at the return and step-up you typed. It is not a promise that a fund will earn that return.
Is the whole withdrawal taxed?
No. Only the gain inside each redemption is taxed. The starting corpus is treated as its own cost. Equity gains above ₹1,25,000 in a year of this plan are taxed at 12.5%, plus 4% cess. A debt fund is taxed at your slab.
Does the withdrawal come before or after the month’s growth?
After. The balance grows for the month, then the withdrawal is paid. If the balance is smaller than the withdrawal, you take what is left and the corpus is finished.
