How the two phases work
- SIP phase: you invest a monthly amount, raised every year by the step-up, until retirement or the goal date. The calculator adds each month's SIP and grows the balance.
- SWP phase: the corpus moves to a steadier fund and pays a monthly income. The calculator finds the starting income that lasts exactly the years you chose, rising every year by the increase you set.
Making the plan safer
- Use a modest SWP-phase return (7% to 9%).
- Plan the income for longer than you expect to need it; people are living longer.
- Keep 1 to 2 years of expenses in a liquid fund so you never sell equity in a bad year.
Already have a corpus? Use the SWP calculator. Want to see the cost of starting late? Try the cost of delay calculator.
Frequently asked questions
How much SIP do I need for ₹50,000 a month after retirement?
It depends on the years and returns. As an example, about ₹3,000 a month for 25 years, raised 10% every year, at 12% builds a corpus that can pay about ₹50,000 a month (rising 6% a year) for 25 years at 8%. Remember that ₹50,000 in 25 years buys only what about ₹12,000 buys today, so plan for a higher figure.
Why use a lower return for the SWP phase?
During withdrawals most people move to safer hybrid or debt funds, so a lower return of 7% to 9% is more realistic than the 11% to 12% often assumed for equity during the SIP years.
Is the monthly income fixed?
It starts at the amount shown and rises every year by the increase you set, so it keeps pace with inflation. Set the increase to 0 for a flat income.
Are these returns guaranteed?
No. Mutual fund returns vary. Treat the result as a plan to review every year, not a promise.