SWP Calculator
Find out how long your corpus lasts or how much you can withdraw monthly
tuneAdjust Inputs
Corpus Lasts
Forever ♾
Withdrawal ≤ monthly returns — corpus sustains indefinitely
Total Withdrawn
₹36,00,000
Monthly withdrawal: ₹30,000
Initial Corpus
₹50,00,000
Starting balance
Total Interest Earned
₹0
Monthly earnings cover withdrawal
Monthly Return Earned
₹41,667/mo
vs withdrawal
Monthly Withdrawal
₹30,000/mo
Below monthly returns ✓
Withdrawn
41.7%
Corpus Remaining
₹50,00,000
Total Withdrawn
₹36,00,000
functions SWP Formula
n = −ln(1 − C×r/W) / ln(1+r)
C = Corpus | r = Monthly rate | W = Monthly withdrawal
Live Result Illustration
Visual summary — updates instantly as you enter values above
Real-Life Guide to Using the SWP Calculator
Systematic withdrawal plan. Use the examples and checks below to turn the number into a practical decision.
When this calculator is useful
Meant for retirees or anyone drawing a regular income from an existing corpus — for instance, someone who has just retired with ₹50,00,000 in a mutual fund and wants a fixed monthly payout without touching a bank FD.
For most people, the best way to use the SWP Calculator is to try the real case first, then change one input at a time. That makes the trade-off visible. For example, with a loan calculator you can change tenure while keeping the same rate; with an investment calculator you can change return assumption while keeping the same monthly contribution; with a health, education or measurement calculator you can check how much one input changes the final category.
The result should answer a practical question: Can I afford this? How much should I save? Is this score enough? Is this measurement within range? What is the safer or cheaper option? If the output does not answer the decision clearly, adjust the inputs until the scenario matches your real situation.
lightbulb Real-Life Example
Retiree comparing two withdrawal amounts: A 60-year-old retiree has a ₹50,00,000 mutual fund corpus and is deciding between withdrawing ₹30,000 or ₹40,000 every month.
1At an assumed 8% annual return, the corpus generates roughly ₹33,333 a month in growth. Withdrawing ₹30,000/month stays below that growth, so the balance can hold or even inch upward over time; withdrawing ₹40,000/month exceeds the monthly growth by about ₹6,667, meaning the corpus is drawn down a little more every month and depletes progressively faster as the shrinking balance in turn generates less growth.
2Now change one input, such as rate, time, quantity, unit or score, and compare the new result with the first one.
The gap between your withdrawal amount and the corpus's assumed monthly growth — not the withdrawal amount alone — decides whether the money lasts.
Practical Advice
Use the SWP Calculator as a planning tool, not just a number generator. Write down the inputs you used, because the final answer is meaningful only when you remember the assumptions behind it.
If the decision affects money, health, tax, safety, academics or legal compliance, keep a second check ready. That second check may be a bank quote, payslip, official rule, prescription, site measurement, mark sheet or invoice.
Common Mistakes
- Setting the monthly withdrawal higher than the corpus's expected growth rate can sustain — e.g. withdrawing ₹40,000/month (9.6% annually) from a ₹50,00,000 corpus growing at an assumed 8%, which draws down principal faster than it can be replenished.
- Assuming the withdrawal amount can simply be increased every year for inflation without re-checking whether the corpus and return rate can still support the higher payout.
- Forgetting that each SWP withdrawal is treated as a partial redemption of units, triggering capital gains tax on the gain portion of every withdrawal, not just at the end.
- Using a single flat return assumption for the entire withdrawal period even though the person may be 25-30 years into retirement, where sequencing of good and bad years matters far more than the average.
- Not checking exit load — withdrawing from a scheme within the load period (commonly the first year) can shave off around 1% from each redemption unexpectedly.
How to Interpret Results
Compare the monthly withdrawal to the corpus's implied monthly growth at your assumed rate — if withdrawals exceed growth, the calculator's ending balance will show the corpus shrinking over time, telling you the payout is not sustainable long-term.
A good interpretation looks at both the main result and the supporting values. If a page shows totals, ratios, categories, schedules or warnings, read those together instead of focusing only on the biggest number.
SWP Calculator FAQs
Useful answers for interpreting the output, avoiding mistakes and using the result responsibly.
What does the SWP calculator actually show me?
It projects how a lump sum corpus changes month by month when a fixed amount is withdrawn regularly while the remaining balance continues to earn the assumed rate of return, showing whether the corpus grows, stays flat, or depletes over your chosen period.
Is my SWP withdrawal tax-free since I already paid tax when I invested?
No — each withdrawal under SWP is a redemption of mutual fund units, and the gain portion of that redemption is taxed as capital gains (equity or debt rules depending on fund type), so tax applies again at withdrawal even though the original investment was from post-tax money.
How is SWP different from just taking bank FD interest payouts?
FD interest payout leaves your principal untouched and pays only the interest earned, whereas SWP withdraws a fixed rupee amount from a market-linked corpus every month regardless of whether that amount equals the actual return generated that month, which is what allows the corpus to shrink if withdrawals outpace growth.
Why does my actual bank/fund statement show the corpus lasting a different number of years than this calculator?
The calculator assumes one constant rate of return for the entire withdrawal period, while real markets deliver uneven year-to-year returns; a few bad years early in the withdrawal phase can deplete a corpus much faster than the smoothed average would suggest.
Can the withdrawal amount be increased every year in this calculator?
Yes, most SWP calculators including this one allow an annual step-up on the withdrawal amount to account for rising expenses, but increasing it too aggressively relative to the assumed return will shorten how long the corpus lasts.
What is a "sustainable" SWP withdrawal rate?
As a rough illustrative guideline, keeping annual withdrawals at or below the corpus's assumed rate of return (for example 6-8% a year from an equity-debt mix) tends to preserve the principal longer, though this is not a guarantee since actual market returns vary.
Does exit load or lock-in affect my SWP withdrawals?
Yes, if the units being redeemed each month are still within the scheme's exit load period (often the first year), each withdrawal can attract a small load charge, reducing the net amount received compared to the calculator's gross projection.
What should I do if the calculator shows my corpus running out before I expect it to?
Consider lowering the monthly withdrawal, choosing a fund mix with a higher assumed return (accepting more volatility), or taking a smaller withdrawal in the early years to let compounding work longer before payouts scale up.
What is an SWP Calculator?
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund corpus every month. Your remaining corpus continues to earn returns, giving you steady income while keeping your wealth working.
Ideal for retirees or anyone wanting monthly income from their investment without selling the entire corpus at once. This calculator shows how long your corpus lasts, the total amount you can withdraw, and whether your withdrawal rate is sustainable based on expected returns.
lightbulb Example Calculation
Scenario: Mrs. Sunita Rao, 60-year-old retired teacher from Hyderabad — ₹50 Lakh corpus in a balanced advantage fund at 10% annual return, wants ₹30,000/month for living expenses
1Monthly rate r = 10% ÷ 12 = 0.833% = 0.00833
2Monthly return = ₹50,00,000 × 0.00833 = ₹41,667
3Withdrawal ₹30,000 < monthly return ₹41,667
✓ Sunita's corpus sustains forever — monthly return covers withdrawal with ₹11,667 surplus each month, corpus keeps growing
Types of SWP
Choose the SWP variant that matches your income need and investment goal
💰
Fixed Amount SWP
Withdraw a fixed rupee amount every month. Simple and predictable. Corpus depletes faster in down markets.
Most Popular
📈
Fixed Return SWP
Withdraw only the returns earned, keeping corpus intact. Sustainable if returns cover withdrawal. Best for "live off returns" strategy.
Sustainable
📊
Appreciation SWP
Withdraw only capital gains, not principal. Useful for tax management — LTCG up to ₹1.25L/year is tax-free.
Tax-Smart
🔄
Variable SWP
Withdrawal amount changes based on portfolio performance. Withdraw less in bad years, more in good years. Complex but portfolio-preserving.
Active
🏛️
Perpetual SWP
Designed so corpus is never exhausted. Withdrawal ≤ monthly returns. Common in retirement planning for ultra-conservative investors.
Long-term
📅
Goal-based SWP
Set up for a specific duration (e.g., 5 years of education fees). Corpus fully depleted at the end of the goal period intentionally.
Goal-driven
8 Mistakes to Avoid in SWP
Small errors in withdrawal planning cost more than market downturns — avoid these to protect your retirement corpus
1
Withdrawing More Than Portfolio Earns
If your corpus earns ₹25,000/month but you withdraw ₹35,000, the corpus depletes faster than expected. Always check if your withdrawal is below the monthly return earned. Use this calculator to find your sustainable withdrawal rate before starting.
2
Starting SWP Too Early After Investment
If you start SWP immediately after lump-sum investment in equity, a market correction can deplete corpus before it recovers. Wait 1–2 years or use a balanced/hybrid fund for SWP to reduce sequence-of-returns risk.
3
Not Accounting for Inflation in Withdrawal
₹30,000/month today will feel like ₹18,000 in 10 years at 5% inflation. Increase withdrawal amount by 5–8% annually to maintain lifestyle. Plan for step-up withdrawals just as you plan for step-up SIPs during accumulation.
4
Ignoring Tax on Each Withdrawal
Each SWP instalment is a redemption — subject to STCG (20%) if < 12 months old, LTCG (12.5%) if > 12 months above ₹1.25L. Track the tax efficiently using the FIFO (First In, First Out) rule to minimise your tax liability.
5
Using Equity Fund for Short-Term SWP
Equity funds are volatile. For SWP less than 5 years, use balanced advantage funds or debt funds to reduce sequence-of-returns risk. A 30% market fall in year one can permanently damage a corpus supporting short-term SWP.
6
Not Having Emergency Reserve Separate
Never use your SWP corpus as your emergency fund. Keep 12 months' expenses in a liquid fund separately so you don't break the SWP during emergencies like medical costs or unexpected home repairs.
7
Choosing Dividend Option Instead of SWP
Dividend payouts are irregular and subject to DDT (dividend distribution tax). SWP from growth option gives more control and is more tax-efficient for planned withdrawals. Growth + SWP always beats dividend option for retirees.
8
Not Reviewing SWP Rate Annually
Market returns change. If your fund's return drops below your withdrawal rate, adjust the withdrawal or switch to a more stable fund before corpus depletes unexpectedly. An annual review of withdrawal rate vs fund return is essential.
SWP Questions Answered
Practical questions on tax, fund selection, sustainability, and more
What is SWP and how is it different from dividend?
SWP (Systematic Withdrawal Plan) lets you redeem a fixed amount from your mutual fund every month at NAV-based prices, while dividends are declared by the fund at its discretion and come from your own NAV. After the 2020 tax change, dividends are taxed at your full income slab rate — but SWP redemptions are taxed only on the gain portion (LTCG at 12.5% for equity held 1+ year). SWP also gives you complete control over the amount and timing, unlike dividends which are irregular and may reduce NAV unexpectedly.
How long will my corpus last with SWP?
Use the formula n = −ln(1 − C×r/W) ÷ ln(1+r), where C is corpus, r is monthly rate, and W is monthly withdrawal. If W ≤ C×r (withdrawal ≤ monthly return), your corpus lasts forever — this is the ideal scenario. Above that threshold, each month erodes the corpus until it reaches zero. This calculator solves the formula instantly — just enter your corpus, withdrawal, and expected return to see exactly how many years your money lasts.
Is SWP taxable?
Yes, each SWP instalment is treated as a redemption and taxed on the gain portion only (not the full withdrawal). For equity mutual funds, units held less than 12 months attract STCG at 20%; units held 12+ months attract LTCG at 12.5% on gains above ₹1.25 lakh per year. The principal portion of each redemption is not taxable. Debt fund SWP gains are taxed at your income slab rate regardless of holding period (post-2023 budget rules).
What is the minimum amount for SWP?
Most mutual fund AMCs set a minimum SWP amount of ₹500 to ₹1,000 per instalment. There is no maximum — you can withdraw any amount up to the fund's current value. However, you must maintain a minimum balance in the fund as specified by the AMC (typically ₹500 to ₹1,000 in remaining units). Check your specific fund's SWP terms before setting it up.
Can SWP replace a pension?
SWP can effectively replace a pension if your corpus is large enough and your withdrawal rate is below the monthly return earned. For example, a ₹1 Crore corpus at 10% annual return generates ₹83,333/month — more than many government pensions. Unlike a pension, SWP is flexible (you can change amounts or stop), but it carries market risk. Most financial planners recommend combining SWP from mutual funds with a fixed annuity from NPS or LIC for a balanced retirement income strategy.
Which mutual fund is best for SWP?
For long-term retirement SWP, Balanced Advantage Funds (BAF) and Aggressive Hybrid Funds are the most recommended — they offer equity-like returns (10–12% long-term) with lower volatility than pure equity. For conservative investors or SWP duration under 5 years, conservative hybrid or short-duration debt funds (7–8% returns) are safer. Avoid pure equity funds for SWP unless your investment horizon is 10+ years and corpus is large enough to absorb short-term volatility.
What happens if the fund gives negative returns during SWP?
During negative return periods, your SWP withdrawals come entirely from principal — the corpus depletes faster than the formula predicts. This is called "sequence-of-returns risk" and is the biggest danger for new retirees starting SWP in a bear market. To mitigate this, keep a cash buffer of 12–18 months of withdrawals in a liquid fund and pause or reduce SWP during severe market downturns (more than 20% drawdown) until recovery.
Can I pause or stop SWP?
Yes — SWP is fully flexible. You can pause, reduce, increase, or stop it at any time through the AMC's app or website, with no penalty in most cases. The request typically needs to be submitted 7–10 business days before the next SWP debit date. Your remaining units stay invested in the fund and continue to earn returns during the pause. This flexibility makes SWP far more convenient than annuity products or FD laddering strategies.
SWP vs FD interest — which is better for regular income?
For most retirees in higher tax brackets, SWP from a balanced/equity mutual fund is more tax-efficient than FD interest. FD interest is fully taxable at your income slab rate (up to 30%), while SWP from equity funds is taxed only on the gain portion at 12.5% LTCG above ₹1.25L — saving up to 18% in taxes. However, FD gives guaranteed, predictable returns while SWP carries market risk. The optimal strategy is usually a combination: FD for the guaranteed base income and SWP from mutual funds for the inflation-beating growth portion.
Is SWP good for retirees?
SWP is one of the best tools for retirement income if used correctly. It provides monthly income like a salary, keeps the remaining corpus invested and growing, is more tax-efficient than dividends or FD interest, and is fully flexible to adjust as needs change. The key is sizing the withdrawal correctly — ideally below the monthly return earned (so corpus never depletes) and having a separate emergency corpus of 12 months' expenses. A ₹50 Lakh to ₹1 Crore corpus in a Balanced Advantage Fund with a 4–5% annual withdrawal rate is widely considered a sustainable retirement SWP setup.