A systematic withdrawal plan: how long a corpus lasts while you take a fixed amount out every month and the rest stays invested.
| Year | Withdrawn so far | Balance |
|---|---|---|
| 1 | ₹2,40,000 | ₹24,58,500 |
| 2 | ₹4,80,000 | ₹24,13,556 |
| 3 | ₹7,20,000 | ₹23,64,881 |
| 4 | ₹9,60,000 | ₹23,12,167 |
| 5 | ₹12,00,000 | ₹22,55,077 |
| 6 | ₹14,40,000 | ₹21,93,249 |
| 7 | ₹16,80,000 | ₹21,26,289 |
| 8 | ₹19,20,000 | ₹20,53,771 |
| 9 | ₹21,60,000 | ₹19,75,235 |
| 10 | ₹24,00,000 | ₹18,90,180 |
| 11 | ₹26,40,000 | ₹17,98,065 |
| 12 | ₹28,80,000 | ₹16,98,305 |
| 13 | ₹31,20,000 | ₹15,90,265 |
| 14 | ₹33,60,000 | ₹14,73,258 |
| 15 | ₹36,00,000 | ₹13,46,539 |
| 16 | ₹38,40,000 | ₹12,09,303 |
| 17 | ₹40,80,000 | ₹10,60,676 |
| 18 | ₹43,20,000 | ₹8,99,713 |
| 19 | ₹45,60,000 | ₹7,25,390 |
| 20 | ₹48,00,000 | ₹5,36,599 |
| 21 | ₹50,40,000 | ₹3,32,138 |
| 22 | ₹52,80,000 | ₹1,10,706 |
| 23 | ₹53,93,191 | ₹0 |
| 24 | ₹53,93,191 | ₹0 |
| 25 | ₹53,93,191 | ₹0 |
Each month the balance earns a twelfth of the annual rate, then the withdrawal comes out. If the withdrawal is smaller than the monthly growth the balance keeps rising; if it is larger the balance falls, slowly at first and then quickly.
The balance is stable when the monthly withdrawal equals the monthly return. On ₹25,00,000 at 8% a year that is about ₹16,700 a month. Anything above that eats into the capital, and the gap between lasting forever and running out in fifteen years can be a few thousand rupees a month.
It assumes a steady return. Real markets fall, and withdrawing a fixed amount during a fall sells more units at the worst time — the same average return can run out years earlier than this page suggests. Tax on each withdrawal is also not included.
Every figure above rests on a rate you chose. These pages use the prices that really occurred.
Not investment advice — read the disclaimer.