SWP Calculator

A Systematic Withdrawal Plan takes a fixed amount out of your investment every month while the rest stays invested. See how long your corpus lasts — and what is left at the end.

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How to use this calculator

  1. Enter total investment — The amount you start with.
  2. Enter monthly withdrawal
  3. Enter expected annual return — What the remaining money keeps earning.
  4. Enter withdrawal period — How long you want the withdrawals to continue.
  5. Read the result — it updates as you type.

The formula used

Balancenext = (Balance − Withdrawal) × (1 + i)

i
Monthly return = annual return ÷ 12 ÷ 100
Withdrawal
The fixed amount taken out each month

There is no single closed formula that also tells you when the money runs out, so the calculator simulates it month by month: take the withdrawal out first, then let the remainder grow.

A useful shortcut: if corpus × monthly rate is greater than your withdrawal, the balance grows and the corpus never runs out.

Worked example

₹50,00,000 invested at 9%, withdrawing ₹30,000 a month.

  • Monthly growth₹50,00,000 × 0.75% = ₹37,500
  • Monthly withdrawal₹30,000
  1. Growth (₹37,500) is more than the withdrawal (₹30,000)
  2. So the balance rises every month instead of falling

At these numbers the corpus lasts indefinitely and still grows. Raise the withdrawal to ₹45,000 and it starts shrinking — try it above.

Using an SWP for regular income

An SWP is the mirror image of a SIP. Instead of putting money in every month, you take a fixed amount out while the rest stays invested. It is a common way to draw an income from mutual funds after retirement.

The number that decides everything

Compare your annual withdrawal with your expected return. Withdraw less than the growth and the corpus keeps rising. Withdraw more and it declines — slowly at first, then quickly, because each withdrawal also removes future growth.

What this model does not include

  • Inflation. A flat ₹30,000 a month buys steadily less over 20 years. For an income that rises with prices, use the Monthly Retirement Income Calculator.
  • Market falls. Withdrawing during a downturn does lasting damage, because you sell more units at low prices. A steady return hides that risk.
  • Tax. Each withdrawal is a partial redemption and may trigger capital gains tax.

Tips and common mistakes

Getting more out of it

  • Compare your withdrawal rate against your expected return. Below it, the balance grows; above it, the countdown has started.
  • Keep two or three years of withdrawals in something safe, so a bad market does not force you to sell at the worst time.

Mistakes to avoid

  • Planning a flat withdrawal for decades. ₹30,000 a month buys far less in year twenty than in year one.
  • Assuming a steady return. Withdrawing during a downturn does lasting damage that an average return hides.
  • Overlooking capital gains tax, which applies to the gain inside every withdrawal.

Frequently asked questions

What is an SWP?

A Systematic Withdrawal Plan — an instruction to your fund house to redeem a fixed amount on a set date each month and credit it to your bank account.

Is an SWP better than a fixed deposit for income?

It can produce a higher income if returns are good, and only the gain portion of each withdrawal is taxed rather than the whole amount. The trade-off is that returns are not guaranteed and a bad market sequence can shorten how long the money lasts.

What withdrawal rate is safe?

Commonly discussed figures are 3–4% of the corpus per year for a long retirement. This calculator shows your rate in the results — anything much above your expected return will run the corpus down.

Is SWP income taxable?

Each withdrawal is a redemption, so the gain within it is subject to capital gains tax based on the fund type and holding period. Only the gain is taxed, not the full withdrawal.

Monthly Retirement Income Calculator

Monthly income a corpus can safely support.

Retirement Retirement Calculator

Corpus you need at retirement and the SIP to get there.

Retirement Mutual Fund Return Calculator

Returns on a mutual fund investment using NAV or amounts.

Mutual Funds SIP Calculator

See what a monthly SIP could grow into over time.

Investment FD Calculator

Maturity value of a fixed deposit with compounding.

Fixed Income Inflation Calculator

What today’s money will be worth after inflation.

Tax & Inflation
Disclaimer: These calculators are for educational and informational purposes only. Results are estimates based on the inputs provided and should not be considered financial, investment, tax, or legal advice.