Calculate the fixed monthly payout you can withdraw from a lumpsum investment over a chosen number of years.
This tool calculates the fixed monthly payment you can withdraw from a lumpsum amount over a set period, while the remaining balance continues to earn interest.
The present value of an annuity formula is used, solved for payment: PMT equals lumpsum times rate, divided by (1 minus (1+rate) to the power negative n).
Enter the lumpsum amount, expected annual return during payout, and the number of years you want payouts for, then click Calculate.
Example: A 20 lakh rupee lumpsum at 7% return can provide a steady monthly payout over 15 years, with the balance still earning interest.
Does the lumpsum run out completely. Yes, this calculation assumes the corpus is fully depleted by the end of the payout period.
What if I want the corpus to last forever. Consider withdrawing only the interest earned each year, which is a different, more conservative strategy.