SWP Calculator

Plan a steady monthly income from your mutual fund corpus. See how much you can withdraw, how long your money will last, and what balance remains — all while the invested amount keeps earning returns.

Withdrawing ₹40,000 a month from a ₹50 L corpus at 9% return comfortably lasts the full 20 years, leaving about ₹33.3 L after ₹96 L of total withdrawals.

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₹1L ₹5Cr
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₹1K ₹5L
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1% 20%
Yr
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How the SWP Calculator works

A Systematic Withdrawal Plan pays you a fixed sum every month from your mutual fund holding. Each month the calculator first grows the remaining corpus by one month's worth of return, then deducts your withdrawal. As long as the monthly growth exceeds your withdrawal, the balance keeps rising; if the withdrawal is larger, the corpus erodes month by month until it is exhausted.

Will your money last?

The single most important relationship is between your withdrawal rate and your return. If you withdraw less than your corpus earns, it can theoretically last forever. Withdraw more, and the calculator tells you exactly how many years and months the money will survive — useful for stress testing a retirement plan against different return assumptions.

Why retirees prefer SWP in India

  • Tax efficiency — only the gain in each withdrawal is taxed, not the whole amount.
  • Predictable income — you decide the exact monthly figure, unlike unpredictable dividends.
  • Growth continues — the un-withdrawn balance stays invested and keeps compounding.
  • Flexibility — you can pause, increase, or stop the SWP at any time without penalty.

Tips for a sustainable SWP

  • Keep your annual withdrawal near 4–6% of the corpus so it lasts a long retirement.
  • Use a balanced or conservative hybrid fund to reduce the risk of withdrawing during a market crash.
  • Maintain a separate emergency buffer so you are not forced to redeem extra during a downturn.
  • Review the plan yearly and adjust the withdrawal if your corpus or return outlook changes.

Frequently asked questions

What is an SWP (Systematic Withdrawal Plan)?
An SWP lets you withdraw a fixed amount from your mutual fund investment at regular intervals — usually monthly — while the remaining corpus stays invested and keeps growing. It is the mirror image of a SIP and is popular among retirees who want a steady, predictable cash flow from a lumpsum.
How long will my corpus last with an SWP?
It depends on three things: the size of your corpus, your monthly withdrawal, and the return the corpus earns. If your withdrawals stay below the growth your corpus generates, it can last indefinitely. If you withdraw more than it earns, the balance shrinks each month and eventually depletes — this calculator shows exactly when.
How is an SWP taxed in India?
Each SWP withdrawal is treated as a redemption, so only the gain portion of each instalment is taxed, not the full amount. For equity funds, gains on units held over 12 months are long-term and taxed at 12.5% above the ₹1.25 lakh annual exemption; units held under 12 months attract 20% short-term capital gains tax. This is far more tax-efficient than the fully-taxable interest from most fixed-income options.
What is a safe withdrawal rate?
A common rule of thumb is to withdraw around 4% of your corpus per year (roughly 0.33% a month) so it can last 25–30 years. In the Indian context, with equity-debt hybrid funds returning 8–10%, a 4–6% annual withdrawal is often sustainable, but lower is safer if you need the money to last through a long retirement.
Is SWP better than a dividend or interest payout?
For most investors, yes. An SWP gives you control over exactly how much you receive and is more tax-efficient, since only the gain in each withdrawal is taxed. Mutual fund dividends (IDCW) are taxed at your slab rate and are not guaranteed, while bank or FD interest is also fully taxable at slab rates.
Which funds are best suited for an SWP?
For a retiree drawing regular income, lower-volatility options work best — balanced advantage, equity savings, or conservative hybrid funds smooth out the ride so you are not forced to redeem units during a sharp market fall. Pure equity funds can be used for a small, growth-oriented SWP over long horizons, but pairing the SWP with a debt or hybrid core protects your monthly cash flow.
Is there TDS on SWP withdrawals for residents?
For resident individuals, mutual funds do not deduct TDS on SWP redemptions — you are responsible for paying capital gains tax yourself when filing your return. This differs from FDs, where banks deduct TDS upfront. NRIs, however, do face TDS on mutual fund redemptions, deducted by the AMC at the applicable capital gains rate.
What is the risk of setting too high a withdrawal rate?
If your monthly withdrawal exceeds what the corpus earns, you start eating into principal — and a market downturn early in your SWP can accelerate depletion sharply (sequence-of-returns risk). Withdrawing 8–10% a year from an equity-heavy corpus can drain it in a bad decade. Keeping withdrawals near 4–6% and holding 1–2 years of expenses in liquid funds cushions against this.
Can I change or stop my SWP later?
Yes. An SWP is fully flexible — you can increase, decrease, pause, or stop the withdrawals anytime by instructing the AMC, and the remaining corpus stays invested. Many retirees raise the withdrawal amount every few years to keep pace with inflation, or pause it during strong markets to let the corpus grow.

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The results shown are estimates for illustration only, based on the inputs and assumptions you provide. Actual returns, interest, and tax depend on market conditions, prevailing rates, and applicable laws, which change over time. This is not investment, tax, or financial advice — please consult a qualified advisor before making decisions.

Final balance
₹33,30,283
Corpus longevity
Lasts the full 20 years