Income Planning
• Updated for Budget 2024 (Sec 112A LTCG)Monthly Income Corpus Calculator
Calculate exact corpus required to generate ₹10,000 to ₹1 Lakh+ monthly income in India. Compare Bank FDs, SCSS, POMIS, Annuities & 12% Mutual Fund SWP with tax.
1. Target Cash Flow
Up to ₹10 Lakh / MoMutual Fund (SWP)
Blended Sovereign Basket
Fixed-Income / Guaranteed Instruments
Gross Pre-Tax YieldsAnnuity-Based (Guaranteed for Life)
Lifetime Cash FlowsHigh-Yield Alternatives (High Risk · Unregulated)
Capital At Risk · Zero DICGCSlab Tax Reality: Unlike Equity MFs (12.5% LTCG), P2P interest is taxed at full slab rate. A 12% yield becomes 8.4% at 30% slab. A 2% default cuts net yield below inflation.
Zero SEBI Protection: Private invoice discounting platforms operate outside SEBI and RBI TReDS purview. There is no statutory investor dispute resolution mechanism.
Empirical Benchmark: Sizing a ₹1,00,000/Month Retirement Cash Flow (2026 Model)
Deterministic actuarial simulation comparing traditional Fixed Deposits, Small Savings Schemes, and an Equity/Hybrid Mutual Fund SWP over a 25-year drawdown horizon in India:
| Asset Class / Strategy | Net Yield | Real Return (vs 6% Inf) | Corpus Required |
|---|---|---|---|
| Bank FD (Senior Citizen 7.5%) | 5.25% | -0.71% | ₹3.29 Cr |
| RBI Floating Rate Bonds (8.05%) | 5.63% | -0.34% | ₹3.14 Cr |
| SCSS (Capped @ ₹30 Lakh) | 5.74% | -0.25% | ₹30.00 Lakh (Max) |
| Mutual Fund SWP (12.0% CAGR) | 8.25% | +5.66% | ₹1.65 Cr |
At 30% tax slab, traditional FDs fail to beat 6% inflation, resulting in severe capital depletion.
₹1.25L LTCG annual exemption cuts SWP tax drag to under 1.1%, saving ₹4,67,575/year in taxes.
SCSS & POMIS cover only ₹26,050/mo combined, requiring market-linked instruments for larger needs.
*Regulatory Disclaimer: All figures and comparisons are generated for mathematical illustration and informational modeling only. FundSageAI is an analytics technology platform and does not offer investment advisory services or recommendations under SEBI (Investment Advisers) Regulations. Mutual fund investments are subject to market risks; please consult a SEBI-registered financial advisor before making any investment decisions.
Get this calculated on your actual portfolio
Audit your existing mutual fund portfolio to verify if your corpus can sustainably generate your target monthly income without premature depletion.
What is Monthly Income Corpus Calculator?
The Monthly Income Corpus Calculator helps Indian investors determine the exact lump sum capital required to generate a consistent monthly cash flow (from ₹10,000 to ₹10 Lakh per month). It contrasts traditional guaranteed options—including Senior Citizen Bank FDs, General Bank FDs, Corporate FDs, RBI Floating Rate Bonds, Senior Citizens Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), and Life Annuities—against a modern 12% Equity/Hybrid Mutual Fund Systematic Withdrawal Plan (SWP). The calculator features dual-phase inflation modeling: it accounts for pre-retirement inflation (compounding today's expenses to your future retirement date) as well as distribution inflation (annually indexing your monthly payouts to maintain real purchasing power). Furthermore, it incorporates India's marginal income tax slabs (up to 30%) and Section 112A's ₹1,25,000 annual LTCG tax exemption to reveal the true post-tax in-hand cash flow.
How to use this tool
Select your timing: Choose 'Need It Today (Immediate)' if retiring now, or 'Future Retirement (In N Years)' to plan ahead.
Enter your desired monthly income in today's rupee purchasing power (or type any custom amount up to ₹10 Lakh/month).
Select your marginal income tax slab (0%, 5%, 10%, 15%, 20%, 30%) and toggle between Post-Tax In-Hand and Pre-Tax Gross cash flow.
Compare the 10-instrument grid to see the required corpus, statutory investment caps (such as ₹30 Lakh on SCSS), and the annual tax savings generated by Mutual Fund SWP.
The Formula
1. Future Inflated Need: M_start = M_today × (1 + i_pre)^N 2. Gross Outflow Sizing (Post-tax Mode): Target_Gross = M_start / (1 − tax_slab) 3. Real Rate of Return: r_real = ((1 + r_net) / (1 + i_post)) − 1 4. Growing Annuity Corpus: Corpus = Annual_Outflow × [ (1 − (1 + r_real)^(-T)) / r_real ] 5. Sec 112A MF SWP Tax: Taxable_Gain = max(0, Gains − ₹1,25,000); Tax = Taxable_Gain × 12.5%
Key Terms
- Growing Annuity
- A sequence of periodic cash flows that increases annually at a constant inflation rate to maintain unchanged real purchasing power over the retirement horizon.
- Real Rate of Return
- The actual net growth rate of an investment after deducting both marginal income taxes and consumer inflation: ((1 + r_net) / (1 + inflation)) − 1.
- Statutory Scheme Cap
- Government-legislated upper ceilings on small savings schemes (e.g. ₹30 Lakh per individual in SCSS, ₹9 Lakh for single POMIS accounts, or ₹15 Lakh for joint POMIS accounts).
- Section 112A LTCG Exemption
- Income tax provision under which long-term capital gains on equity mutual funds are 100% tax-free up to ₹1,25,000 per financial year, with gains above this threshold taxed at 12.5%.
Key Benefits
- ✓Comprehensive 10-instrument benchmark covering all major Indian sovereign, banking, and market-linked retirement cash flow vehicles.
- ✓Dual-phase inflation modeling prevents underestimating future living costs and purchasing power decay.
- ✓Precise income tax slab modeling reveals the massive negative real return drag of fixed deposits taxed at 30%.
- ✓Visualizes Section 112A's ₹1.25 Lakh annual LTCG exemption, demonstrating over ₹3.23 Lakh in annual tax savings on a ₹1 Lakh/month income.
- ✓Smart Blended Guaranteed Basket automatically optimizes statutory scheme caps (SCSS ₹30L + POMIS ₹9L/₹15L + RBI Bonds).
Practical Example
Target Monthly Income: ₹1,00,000/month (₹12 Lakh/year) | Horizon: 25 Years | Tax Slab: 30% | Inflation: 6% - Bank FD Senior (7.5%): Post-tax yield = 4.90%. Real return = -1.04% (lags inflation). Required Corpus = ₹2.88 Crore. Annual Tax Drag = ₹3,60,000. - RBI Floating Bonds (8.05%): Post-tax yield = 5.64%. Real return = -0.34%. Required Corpus = ₹2.62 Crore. - SCSS (8.2%): Capped at ₹30 Lakh per individual, producing maximum ₹20,500/month (covers only 20.5% of income need). - Mutual Fund SWP (12%): Post-tax return ≈ 10.95%. Real return = +4.67%. Required Corpus = ₹1.35 Crore. Annual Tax Saved = ₹3,23,125/year. Result: The 12% Mutual Fund SWP requires ₹1.53 Crore less capital while compounding wealth and beating inflation.
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Do more with your real portfolio data
- 1True portfolio XIRR calculation
- 2SWP stress-testing against inflation
- 3Stock overlap and tax harvesting analysis
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