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How much corpus do you need to withdraw ₹50,000 per month via SWP?
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Calculate the lumpsum corpus required so that a Systematic Withdrawal Plan (SWP) of ₹50,000/month never depletes your principal, assuming 6% annual returns.
Why SWP Corpus Planning Matters
A Systematic Withdrawal Plan (SWP) turns a retirement corpus into a monthly paycheck. Withdrawing ₹50,000 a month — roughly ₹6 lakh a year — covers a comfortable retirement in most non-metro cities and pays the rent in a metro for a couple. The big question is how much corpus you need to start with so that monthly withdrawals don’t eat into the principal.
The answer depends entirely on your portfolio return. At 8% balanced returns with 6% inflation, around ₹75-80 lakh is enough to sustain ₹50,000/month for 25 years (the principal slowly depletes). At 10% returns with regular step-ups, the same income is sustainable from ₹65 lakh. For a true perpetual income — principal preserved indefinitely — you need closer to ₹1 crore at 6% real return.
SWP is more tax-efficient than dividends because only the gains portion of each withdrawal is taxable. For Indian retirees in the 20-30% slab, this can save lakhs in taxes over a 20-year horizon compared to interest-bearing FDs.