How much monthly income from ₹2 crore for 20 years?
You have ₹2 crore and need it to last 20 years. Here is the highest monthly withdrawal (SWP) that lasts that long, worked out at three return assumptions, with and without a yearly increase for inflation.
Start with this every month, raise it 6% each year (at 8%)
or ₹1,67,200 a month if you never increase it
- Monthly withdrawal in year 20
- ₹3,20,108
- Total you take out
- ₹4,67,02,987
- First-year withdrawal rate
- 6.3%
- Returns alone, at 8%
- ₹1,33,300 a month
Corpus at the end of each year, at 8% a year. The rising plan raises its withdrawal 6% a year.
| Monthly SWP that lasts 20 years, if returns are | 7% | 8% | 10% |
|---|---|---|---|
| Same amount every month | ₹1,55,000 | ₹1,67,200 | ₹1,93,000 |
| Starting amount, raised 6% a year | ₹96,300 | ₹1,05,800 | ₹1,26,500 |
Reading this honestly
These figures assume the same return every month. Markets do not work that way. A fall in the first few years of withdrawals does far more damage than the same fall later, because you are selling units at low prices to pay yourself. Many retirees keep two to three years of withdrawals in a liquid or short-term debt fund, so they never have to sell equity at a low point.
The 8% column is a common assumption for a balanced portfolio. The 7% column is closer to what a debt-heavy portfolio or fixed deposits might earn. If your plan still works in that column, you have a margin of safety.
Tax: each SWP payment is a partial redemption, so only the gain portion of each payment is taxed, at equity or debt fund rates. The figures here are before tax and fund expenses.
Want to try your own numbers? The SWP calculator lets you change every assumption. Still building it? See the monthly SIP that reaches ₹2 crore by 55 or 60, starting at 30, or pick your own ages.
Questions people ask
How much monthly income can ₹2 crore give for 20 years?
At an 8% return, about ₹1,67,200 a month if the amount never changes, or ₹1,05,800 to start if you raise it 6% every year to keep up with inflation. At 7%, the figures are ₹1,55,000 flat or ₹96,300 rising.
Can I live on the returns alone and never touch ₹2 crore?
At 8%, the returns alone pay about ₹1,33,300 a month. The corpus stays at ₹2 crore on paper, but a fixed ₹1,33,300 buys less every year. After 20 years at 6% inflation it buys what about ₹41,564 buys today.
Why does a rising withdrawal start so much lower?
Because it pays far more in later years. Starting at ₹1,05,800 and rising 6% a year, the payment reaches ₹3,20,108 a month in year 20. Over the whole period you take out ₹4.67 crore, against ₹4.01 crore with the flat plan.
Related plans
₹2 crore for 25 years, ₹2 crore for 30 years, ₹50 lakh for 20 years, ₹1 crore for 20 years, ₹5 crore for 20 years. Or work backwards from the income you need: all SWP plans.
Assumes the corpus earns a steady return compounded monthly, with each withdrawal taken at the end of the month and raised once a year. Before tax and fund expenses. For education only, not investment advice.