Goal Studio · Regular income
Turn a corpus into dependable monthly income
Decide the monthly income you want in today’s money, when it should start and how long it should last. We work out the corpus that could fund it — rising with inflation — and what it takes to build.
- Inflation
- 6%
- Assumed return
- 10%
Starting assumptions — hypothetical and editable below.
Your plan
Illustrative investment needed
₹1,02,907a month
To have ₹2.33 Cr in 2036 (₹1.3 Cr in today’s money), invest about ₹1,02,907 a month, at an assumed 10% a year.
- Cost in 2036
- ₹2.33 Cr
- ₹1.3 Cr in today’s money, at 6% inflation
- What you have could grow to
- ₹25.94 L
- ₹10 L today, at 10% a year
- Funding gap
- ₹2.07 Cr
- Future cost minus what you have could grow to
- You would invest in total
- ₹1.23 Cr
- New contributions over 10 years
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This is an illustration, not a forecast or a promise. It is based on the assumptions shown, which are hypothetical and yours to edit. Actual returns may differ, sometimes significantly, and market-linked investments involve risk, including the possible loss of capital. Taxes, costs and inflation can change the outcome.
Assumptions behind these numbers
Default assumptions are hypothetical round numbers chosen for illustration. They are not forecasts and not a view on any product. Change them to see how sensitive the result is.
- Monthly income wanted (today’s money)
- ₹50,000
- Years of income
- 25 years
- Return while drawing income (illustrative)
- 7%
- Income corpus, in today’s money
- ₹1,30,24,651
- Years to goal
- 10 years
- Inflation for this goal (annual)
- 6%
- Already invested
- ₹10,00,000
- Assumed annual return (illustrative)
- 10%
- Contribution frequency
- Monthly
How it is calculated
- Income is drawn at the start of each month and rises with inflation once a year; the rest of the corpus earns the payout-phase return.
- The corpus is the amount that would fund this income for the whole period and then run to zero.
- Inflation is an effective annual rate. Value in today’s money = future amount ÷ (1 + inflation)^years.
- The annual return is an effective annual (compound) rate; the periodic rate is (1 + annual rate)^(1/periods) − 1.
- Contributions are assumed at the start of each period.
- These figures are illustrations based on hypothetical assumptions, not forecasts. Actual returns may differ, and market-linked investments involve risk.
Formula set v1.0.0
What to consider
Before you settle on a regular income number
Predictability costs growth
Income-focused money usually trades some growth for stability. The payout-phase return here is set lower than the building-phase return for that reason.
Inflation eats a fixed payout
A fixed monthly amount buys less every year. This plan lets the income rise with inflation once a year.
Tax changes the net figure
Interest from deposits and bonds is generally taxed as income; withdrawals from mutual funds can attract capital-gains tax. Rules change, so check the current treatment for your situation.
Concepts
Three ways regular income is commonly arranged
Each has different risks, liquidity and tax treatment. This is an explainer, not a recommendation.
- Systematic withdrawal plan (SWP)
- A fixed amount is redeemed from a mutual fund every month. The rest stays invested, so its value — and how long it lasts — depends on market returns.
- Deposit interest payouts
- Fixed deposits can pay interest monthly or quarterly instead of compounding it. The payout is known in advance for the tenure; premature withdrawal usually carries a penalty.
- A ladder of deposits or bonds
- Money is split across deposits or bonds that mature in sequence — one each year, for example — so cash arrives on a schedule and maturing money can be reinvested at the rates then available.
Explore
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Tools
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Goal Studio
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