Monthly income calculator
Name the monthly income you want and this works backward to the capital it takes, before and after tax, at the yield you set. Then see live bonds that actually pay monthly or quarterly, not just an annual lump sum.
Capital needed
Capital needed ₹40,81,633.
What it takes to generate ₹25,000 a month, after tax, at 10.5% YTM taxed at the 30% slab.
Enter a yield above 0%. The capital needed cannot be worked out from a zero or negative post-tax yield.
Capital needed after tax is the realistic figure: it already accounts for tax at your slab on the interest this capital would earn.
Live bonds that actually pay monthly or quarterly
Bonds we track that pay out monthly or quarterly, not annually or at maturity, ranked by what each keeps after tax at the 30% slab.
No monthly or quarterly payers to rank right now. Try the full monthly income list.
See the full monthly income listHow this is calculated
This works backward from the income you want to the capital that produces it, using your post-tax yield rather than the quoted one, since post-tax is what actually lands in your account.
post-tax yield = YTM x (1 - slab / 100)
capital needed = (monthly income x 12) / (post-tax yield / 100)
capital needed, ignoring tax = (monthly income x 12) / (YTM / 100)
monthly income per lakh = (post-tax yield / 100) x 1,00,000 / 12
- The yield you enter is assumed constant for as long as you hold the capital. Real yields change as bonds mature and the proceeds are reinvested at whatever rate is available then.
- Interest is taxed at the slab you pick every year. Surcharge and the 4% health and education cess are not applied, so a high earner's real capital requirement is slightly higher.
- The capital figure assumes interest is taken as income each year, not reinvested. Reinvesting part of it would need less capital up front but would change the income over time.
- TDS timing and the risk of an issuer defaulting or a bond being called early are not modelled. Diversifying across issuers and ratings is a separate decision this page does not make for you.
Frequently asked questions
How much capital do I need to generate a fixed monthly income from bonds?
Divide the annual income you want by the post-tax yield you expect, as a fraction. A 10% bond taxed at the 30% slab keeps 7% after tax, so ₹3,00,000 a year, or ₹25,000 a month, needs about ₹42.9 lakh invested. Enter your own numbers above: the capital needed scales up directly with the income you name and down as the yield rises.
Why does my tax slab change the capital needed so much?
Tax reduces the yield you actually keep, and this calculator works backward from that post-tax number. A 10% bond keeps only 7% after tax at the 30% slab, needing almost 1.43 times more capital for the same income than the pre-tax yield alone would suggest. At the 5% slab the same bond keeps 9.5%, so the capital required falls a lot. Move the slab control to see the swing directly.
Do all bonds pay income monthly?
No. Bonds pay coupons monthly, quarterly, half-yearly, annually, or as a single cumulative sum at maturity, and the schedule is fixed by the issuer, not chosen by you. If you want an actual monthly income stream rather than a lump sum, you need bonds whose payout frequency is monthly or quarterly, which is exactly what the bonds listed below this calculator are filtered to. A bond paying annually or cumulatively can still suit a plan, but you would have to bridge the gaps between payouts yourself.
Is it safe to build a monthly income plan entirely from bonds?
Concentrating income in a handful of bonds carries issuer credit risk that a bank FD or a government security does not. A common approach is to ladder several bonds across different issuers and ratings so one default does not remove the whole income stream, and to keep the credit rating shown against each bond in view rather than chasing yield alone. This calculator tells you the capital required, not which specific bonds to hold that capital in.
Results are estimates for guidance only, not investment or tax advice. Yields, payout schedules and minimum investments change daily, and your actual tax depends on your full income, surcharge and cess. Verify every number on the platform before you invest.