Used by thousands of investors in India
SWP Calculator — Will Your Corpus Last?
Find out if your corpus will last — and how much you can safely withdraw each month.
Can your ₹25L generate ₹20,000/month for 20 years without running out? 🤔
✓ Know exactly how long your money lasts
✓ Find the safest monthly withdrawal amount
✓ Avoid running out of money in retirement
✓ Compare scenarios in seconds — free, no login
👇 Adjust the values below to plan your monthly income
Initial Investment₹25,00,000
Monthly Withdrawal₹20,000
Expected Return Rate (p.a.)12%
Time Period10 yr
🟢 Safe Withdrawal
🔒 Based on realistic return assumptions
Final Value of Investment
₹0
Total withdrawn
—
Remaining corpus
—
🧠 Smart Insight
Calculating...
📈 Corpus value over time
Initial Investment₹25,00,000
Total Withdrawn₹0
Final Balance₹0
💡 Your corpus lasts throughout the period at this withdrawal rate.
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What is SWP (Systematic Withdrawal Plan)?
SWP for Retirement Income
Retire with ₹50L–₹1Cr and withdraw a fixed monthly amount. Your equity corpus keeps growing, giving you inflation-beating income for 25–30 years.
Learn retirement strategy →
SWP for Passive Income
Already have a lump sum from a bonus, inheritance, or property sale? Use SWP as a salary replacement — generate ₹15,000–₹50,000/month while your investment grows.
See passive income guide →
A Systematic Withdrawal Plan (SWP) is a facility offered by mutual funds that allows you to withdraw a fixed amount from your investment at regular intervals — monthly, quarterly, or annually. It is essentially the reverse of a SIP. Instead of putting money in regularly, you take money out regularly, while the remaining corpus continues to grow.
SWP is particularly popular among retirees who need a regular income stream without depleting their entire corpus at once. Unlike an FD, an SWP can be structured so that withdrawals come primarily from capital gains, minimising tax.
How SWP Works
When you set up an SWP, the mutual fund redeems units equal to the withdrawal amount at the prevailing NAV each period. If the fund grows faster than your withdrawal rate, your corpus actually grows over time. If your withdrawal rate exceeds the fund's returns, the corpus shrinks gradually.
SWP Corpus at End of Each Month
Corpus(n) = Corpus(n-1) × (1 + r) − W
r = Monthly return rate (Annual return ÷ 12) | W = Monthly withdrawal amount
SWP Calculation Example
📘 Example: ₹25L corpus, ₹20,000/month withdrawal at 12% return
| Initial Corpus | ₹25,00,000 |
| Monthly Withdrawal | ₹20,000 |
| Expected Annual Return | 12% |
| Period | 10 years |
| Total Withdrawn | ₹24,00,000 |
| Remaining Corpus after 10yr | ₹36,50,193 |
The corpus grows because the 12% annual return exceeds the withdrawal rate of ~9.6%.
SWP vs Fixed Deposit for Retirement
| Feature | SWP (Equity Fund) | FD |
|---|---|---|
| Monthly Income | Flexible withdrawal | Fixed interest payout |
| Corpus Growth | Can grow even while withdrawing | Fixed, no growth |
| Tax on Withdrawals | Only gain portion taxed (LTCG/STCG) | Full interest taxable at slab rate |
| Inflation Protection | Yes (equity grows with inflation) | No (fixed rate) |
| Risk | Market-linked | None (up to ₹5L DICGC insured) |
How to Use SWP for Retirement Income in India
- The bucket strategy: Keep 1–2 years of expenses in a liquid fund, 3–5 years in a short-duration debt fund, and the rest in equity/balanced funds. Set SWP from the liquid bucket and refill periodically.
- Sustainable withdrawal rate: Withdraw no more than 6–7% of corpus annually from balanced funds. Higher than the fund's expected return will eventually deplete the corpus.
- Tax efficiency: Each SWP redemption consists of original cost (untaxed) and gains (LTCG 12.5% with ₹1.25L annual exemption). Far more efficient than FD interest, which is 100% taxable at your slab rate.
- Inflation protection: Equity funds growing at 12%+ allow your corpus to grow even while withdrawing — preserving purchasing power over 20–30 years of retirement.
Frequently Asked Questions
The commonly cited "safe withdrawal rate" from retirement research (originally the 4% Rule from the US) suggests withdrawing 4% of your corpus annually. For India, given higher equity returns and inflation, some advisors suggest 5–6% as sustainable. However, your safe rate depends on your corpus size, fund returns, life expectancy, and other income sources. Our SWP calculator lets you test different scenarios.
Yes, highly. With SWP from an equity mutual fund, each redemption consists partly of your original investment (cost basis) and partly of gains. Only the gains portion is taxable — as LTCG at 12.5% (if held >1 year) or STCG at 20%. LTCG up to ₹1.25 lakh per year is tax-free. Compare this to FD interest which is fully taxable at your slab rate (up to 30%). For most retirees, SWP has a significantly lower effective tax rate.
Yes. You can modify your SWP amount at any time by submitting a request to the fund house or through your investment platform. Many advisors recommend increasing the withdrawal by 5–7% annually to account for inflation — this is sometimes called a "Step-up SWP." Our calculator currently shows a fixed withdrawal; consult a financial advisor for dynamic withdrawal planning.
If your withdrawal rate consistently exceeds your fund's return rate, the corpus will deplete — eventually reaching zero. Our SWP calculator shows a warning when this happens. To avoid corpus depletion: choose a lower withdrawal amount, invest in a higher-return fund, start with a larger corpus, or consider a hybrid approach combining SWP with guaranteed income products like Senior Citizen Savings Scheme (SCSS) or NPS annuity.
📖 Learn More About SWP
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Real Rs 20L scenarios, after-tax income comparison, and practical verdict for every type of Indian investor.