SWP Calculator
Calculate how long your corpus lasts with Systematic Withdrawal Plan (SWP). Plan monthly withdrawals, track remaining corpus, and visualize depletion over time.
Withdrawal Details
Initial Corpus
₹10.00 L
Monthly Withdrawal
₹10,000/mo
Expected Annual Return
Withdrawal Period
Monthly Interest on Corpus
₹6,667/mo
To withdraw indefinitely without depleting corpus, keep monthly withdrawal at or below ₹6,667/mo.
Initial Corpus
₹10.00 L
₹10,00,000
Total Withdrawn
₹12.00 L
₹12,00,000
Interest Earned
+₹5.90 L
₹5,90,180
Remaining Corpus
₹3.90 L
₹3,90,180
Corpus After Withdrawal Period
₹3.90 L
₹3,90,180
Corpus Breakdown
Remaining (24.5%)
Withdrawn (75.5%)
Corpus Balance Over Time
High (>50%)
Medium (25–50%)
Low (<25%)
Year-by-Year Breakdown
| Period | Total Withdrawn | Interest Earned | Remaining Corpus | % Remaining |
|---|---|---|---|---|
| Yr 1 | ₹1,20,000 | +₹78,500 | ₹9,58,500 | 95.9% |
| Yr 2 | ₹2,40,000 | +₹1,53,556 | ₹9,13,556 | 91.4% |
| Yr 3 | ₹3,60,000 | +₹2,24,881 | ₹8,64,881 | 86.5% |
| Yr 4 | ₹4,80,000 | +₹2,92,167 | ₹8,12,167 | 81.2% |
| Yr 5 | ₹6,00,000 | +₹3,55,077 | ₹7,55,077 | 75.5% |
| Yr 6 | ₹7,20,000 | +₹4,13,249 | ₹6,93,249 | 69.3% |
| Yr 7 | ₹8,40,000 | +₹4,66,289 | ₹6,26,289 | 62.6% |
| Yr 8 | ₹9,60,000 | +₹5,13,771 | ₹5,53,771 | 55.4% |
| Yr 9 | ₹10,80,000 | +₹5,55,235 | ₹4,75,235 | 47.5% |
| Yr 10 | ₹12,00,000 | +₹5,90,180 | ₹3,90,180 | 39.0% |
SWP Calculator — Plan Your Retirement Income
A Systematic Withdrawal Plan (SWP) is the mirror image of SIP — instead of investing regularly, you withdraw a fixed amount every month from your invested corpus. It is widely used by retirees and investors who want a steady, predictable income stream without selling all their investments at once. Our SWP calculator helps you project how long your corpus will last, how much interest it earns along the way, and whether your withdrawal rate is sustainable.
What is SWP?
SWP stands for Systematic Withdrawal Plan. You invest a lump sum into a mutual fund or fixed-income instrument, and then instruct the fund house to redeem a fixed number of units (or a fixed rupee amount) every month. The remaining corpus stays invested and continues to earn returns. This creates a predictable monthly cash flow — ideal for post-retirement income planning.
SWP Calculation Formula
B[m] = (B[m-1] × (1 + r)) − W
Corpus balance at end of month m
Monthly rate = Annual Rate ÷ 12 ÷ 100
Fixed monthly withdrawal amount
💡 ₹10 L corpus · 8% return · ₹10,000/mo withdrawal → Lasts ~15+ years before depletion.
♾️
The Sustainable Withdrawal Rule
If your monthly withdrawal equals (or is less than) the monthly interest your corpus earns, the corpus never depletes — it becomes a perpetual income source. This is called a sustainable withdrawal rate. For an 8% return on ₹10 L, the sustainable monthly withdrawal is ₹6,667. Withdraw less → corpus grows. Withdraw more → corpus shrinks.
Withdrawal < Monthly Interest
Withdrawal = Monthly Interest
Withdrawal > Monthly Interest
Key Benefits of SWP
💵
Regular Income
Receive a fixed, predictable amount every month — ideal for retirees replacing a salary with investment income.
📈
Corpus Keeps Growing
The uninvested portion remains in the fund, earning returns. A well-sized corpus can outlast the withdrawal period.
🧾
Tax Efficient
Only the capital gains portion of each withdrawal is taxable — not the full withdrawal amount, unlike FD interest.
🔓
Fully Flexible
Change or pause the withdrawal amount anytime. Unlike annuities, SWP gives you full control over your corpus.
🛡️
Inflation Hedge
Equity or hybrid fund returns can outpace inflation, preserving real purchasing power over long withdrawal periods.
⚙️
Auto-Redeemed
Units are auto-redeemed monthly by the fund house — no manual action needed. Proceeds hit your bank account directly.
SWP vs FD Interest Payout
Both FD interest payouts and SWP generate monthly income, but SWP from equity/hybrid mutual funds can offer higher effective returns. FD interest is fully taxable at your income slab rate. With SWP from equity funds held over 12 months, only long-term capital gains apply at 10% on gains above ₹1 L/year — often resulting in lower net tax. Additionally, FD rates are fixed; mutual fund SWP can earn more in good years.
How to Use This Calculator
1
Enter your Initial Corpus — the lump sum amount you have invested.
2
Set Monthly Withdrawal — the fixed amount you want to receive each month.
3
Set Expected Annual Return — 7–10% for balanced/hybrid funds, 6–8% for debt.
4
Choose Withdrawal Period in Years or Months.
5
Check the alert bar — green means sustainable, red means corpus runs out early.
Frequently Asked Questions
What is an SWP in mutual funds?
SWP (Systematic Withdrawal Plan) allows you to redeem a fixed amount from your mutual fund investment every month. The fund house automatically sells the required units and credits the proceeds to your bank account. The remaining corpus stays invested and continues earning returns.
How much corpus do I need to withdraw ₹50,000/month?
It depends on your expected return rate. At 8% annual return, the sustainable monthly withdrawal (interest only) is: Corpus × 8% ÷ 12. For ₹50,000/month, you need: ₹50,000 × 12 ÷ 8% = ₹75 Lakhs. If you are also comfortable with some corpus depletion over 20–25 years, a lower corpus may suffice.
Is SWP taxable?
Yes, but only the capital gains portion of each withdrawal is taxable — not the full amount. For equity mutual funds held over 12 months, long-term capital gains (LTCG) at 10% apply on gains above ₹1 Lakh per year. For debt funds, gains are added to income and taxed at your slab rate after April 2023.
What is the ideal return rate to use for SWP planning?
For conservative planning, use 6–7% for debt/balanced funds. For aggressive equity-heavy portfolios, 9–12% is often used. We recommend using 7–8% for realistic retirement planning — it accounts for market volatility and years when returns may be lower.
Can SWP corpus run out?
Yes — if the monthly withdrawal exceeds the monthly interest earned on the corpus, the balance decreases each month and will eventually hit zero. Our calculator shows exactly when (and if) this happens based on your inputs, and alerts you immediately if your withdrawal rate is unsustainable.
How is SWP different from SIP?
SIP (Systematic Investment Plan) builds wealth by investing regularly into a fund. SWP is the reverse — it draws down an existing corpus with regular redemptions. SIP is for the accumulation phase of your financial life; SWP is for the distribution phase, typically post-retirement.