SWP Calculator
See how long your corpus lasts with regular monthly withdrawals and expected returns.
Systematic Withdrawal Plan (SWP)
An SWP withdraws a fixed sum from your mutual fund or corpus each month while the remainder stays invested. Retirees often use SWP for regular income instead of selling ad hoc units.
How to use this calculator
Enter starting corpus, monthly withdrawal, expected return, and years to simulate. The tool runs month-by-month: growth on the balance, then subtract the withdrawal.
If the corpus hits zero before the period ends, withdrawals were too high for the return assumed. Lower the monthly amount or shorten the planned withdrawal years. A common rule of thumb is withdrawing 3% to 4% of the starting corpus per year for a thirty-year horizon, but Indian inflation and tax mean many retirees need to stay closer to 3%.
SWP from equity funds in the first years of retirement carries sequence risk: early losses plus withdrawals shrink the base faster. Many planners keep one to two years of expenses in liquid funds and run SWP on the rest. Rebalance once a year so equity share does not drift too high after a long rally.
Tax applies on each redemption unit sold to fund the SWP, not on the SWP amount itself. Factor tax when setting the monthly withdrawal target. Debt fund SWPs may suit conservative retirees who want smoother NAV paths.
You can register SWP with the AMC on a fixed date, similar to SIP. Pause or change amount when expenses shift. This calculator does not model step-up SWP; rerun with a higher monthly figure when you need more income.
SWP simulation logic
Each month: 1. Balance = previous balance × (1 + monthly rate) 2. Balance = balance − fixed withdrawal Monthly rate i = (1 + annual return)^(1/12) − 1 Example: ₹50 lakh corpus, ₹40,000/month SWP, 8% return, 15 years. If returns stay near 8%, roughly ₹20 to ₹30 lakh may remain after 15 years. Higher withdrawal or lower returns deplete the corpus sooner. Real funds charge expense ratio and may miss the assumed return in bad years.
Frequently Asked Questions
SWP vs dividend payout?
SWP sells units you choose on a schedule. Dividend options depend on fund profits and are not guaranteed. SWP gives predictable cash flow.
SWP from debt or equity?
Debt SWPs suit near-term income with lower volatility. Equity SWPs suit longer horizons where growth can offset withdrawals.
What if corpus runs out?
Reduce monthly withdrawal, extend working years, or keep a larger liquid buffer before starting SWP.
Is SWP taxable?
Each unit redeemed to pay SWP triggers capital gains tax per holding period rules. There is no separate SWP tax category.
Can I change SWP amount?
Yes with the AMC. Pause or raise withdrawals when expenses change; update this calculator with new numbers.
SWP vs bank FD interest?
FD gives fixed interest but taxable at slab and no growth on principal. SWP can grow remaining corpus but NAV can fall.
Minimum SWP amount?
AMCs often allow ₹500 to ₹1,000 minimum monthly SWP depending on scheme and platform.
Safe withdrawal rate in India?
Many planners use 3% to 4% of the starting corpus per year, adjusted for inflation. Run this tool at 7% and 9% return to stress-test your chosen monthly amount.
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