SWP Calculator

Plan your retirement withdrawals — see how long your corpus lasts with a Systematic Withdrawal Plan.

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Enter your corpus and withdrawal details above to see your SWP plan

How SWP works

In a Systematic Withdrawal Plan, your invested corpus continues to earn returns while you withdraw a fixed amount each month. If the return on your corpus exceeds your withdrawal, the corpus can grow even as you withdraw. If withdrawals exceed returns, the corpus depletes over time.

Monthly SWP Formula
Balance(n) = Balance(n-1) × (1 + r) − W
Where r = annual return / 12 / 100 (monthly rate) and W = monthly withdrawal. Applied every month until the period ends or balance hits zero.
Sustainable Withdrawal Rate
Monthly W ≤ Corpus × r
If your withdrawal equals or is less than one month's return, your corpus is theoretically infinite. For a ₹50 L corpus at 10% p.a. (0.833%/month), that's ₹41,667/month.

Tips for planning your SWP

Keep a Buffer

Withdraw 10–15% less than the maximum sustainable rate to account for market volatility and years when returns are lower than expected.

Equity + Debt Mix

Keep 1–2 years of withdrawals in a liquid/debt fund. This prevents forced redemptions from equity funds during market downturns.

Review Annually

Review your SWP amount every year. Adjust for inflation and revisit if market returns deviate significantly from your assumed rate.

Frequently asked questions

What is the difference between SWP and SIP?

SIP (Systematic Investment Plan) involves investing a fixed amount every month to build wealth. SWP (Systematic Withdrawal Plan) is the reverse — you withdraw a fixed amount every month from an existing corpus. SIP is used during the accumulation phase; SWP is used during the distribution or retirement phase.

Is SWP income taxable in India?

Yes, each SWP redemption is treated as a sale of mutual fund units. For equity funds held over 1 year, Long Term Capital Gains (LTCG) above ₹1.25 lakh per year are taxed at 12.5%. For gains on units held under 1 year, Short Term Capital Gains (STCG) are taxed at 20%. For debt funds, gains are added to your income and taxed at your slab rate.

What happens when the corpus is exhausted?

If your monthly withdrawal exceeds the growth generated each month, the corpus will eventually reach zero. After that, no more withdrawals are possible. This calculator shows you the exact month the corpus runs out so you can adjust your withdrawal amount or investment horizon accordingly.

Which mutual funds are suitable for SWP?

Balanced Advantage Funds, Conservative Hybrid Funds, and large-cap equity funds are popular SWP choices. For conservative investors, Monthly Income Plans (MIPs) or Short Duration Debt Funds work well. The key is matching the expected return assumption to the actual fund category and your risk tolerance.

Can I change my SWP withdrawal amount later?

Yes. Most fund houses allow you to modify, pause, or stop your SWP at any time without penalties. You can also set up step-up SWP to increase withdrawals annually to keep pace with inflation.