What is the SWP Calculator?
A Systematic Withdrawal Plan (SWP) is the reverse of a SIP — you put a lump sum in a mutual fund and withdraw a fixed amount every month while the rest stays invested and keeps growing. It's how retirees turn a corpus into a paycheck.
This SWP calculator shows how long your corpus will last at a chosen withdrawal rate, how much you'll have withdrawn in total, and the balance left at the end of the period.
Formula
- Balance(t) — Corpus at start of month t
- i — Monthly rate of return
- W — Monthly withdrawal
Iterated month by month until the chosen tenure ends or the balance hits zero.
Step-by-step example
Setup: ₹50,00,000 corpus, withdraw ₹40,000/month, expected return 9% p.a., 20 years.
- Monthly return i = 0.0075
- Each month: balance grows by 0.75%, then ₹40,000 is removed
- After 240 such steps, ending balance ≈ ₹38,55,000
Answer: Total withdrawn ₹96,00,000 · Ending balance ≈ ₹38,55,000 (corpus sustains).
Frequently asked questions
Is SWP better than FD for monthly income?
SWP from a hybrid mutual fund is typically more tax-efficient and beats post-tax FD returns over long horizons, but it carries market risk.
How is SWP taxed?
Only the gain portion of each withdrawal is taxed. For equity funds it's LTCG/STCG; for debt funds it's at slab rate.
What withdrawal rate is safe?
A 4–6% annual withdrawal rate is generally considered sustainable for a 25–30 year retirement, assuming balanced or equity-heavy allocation.