About the SWP Calculator
This SWP calculator plans a Systematic Withdrawal Plan — a fixed amount you withdraw from a mutual fund every month while the rest of the corpus stays invested. Enter your lump-sum corpus, the monthly withdrawal, the expected annual return and the period, and it shows the value left at the end, the total you withdrew and the returns earned along the way.
SWPs are popular with retirees and anyone who wants a regular “salary” from a debt, hybrid or equity fund. You can add a yearly step-up to raise withdrawals with inflation, and the calculator tells you if and when the corpus would run out, plus the maximum monthly amount that would last exactly the whole period.
The returns are assumed to be steady and compounded monthly, with each withdrawal taken at the end of the month. Real fund returns vary, and each SWP instalment is a redemption that can attract capital gains tax, which this calculator does not deduct.
With the default inputs, the final value of corpus is ₹6,153,460.74. Change any value above to recalculate instantly.
How to use the swp calculator
- 1Enter the lump sum you will invest or already hold in the fund.
- 2Enter the amount you want to withdraw every month.
- 3Enter a realistic expected annual return for the fund type.
- 4Choose the period and, optionally, a yearly increase in withdrawals.
- 5Check the final value and whether the money lasts; lower the withdrawal if it runs out too soon.
Formula and method
Each month the remaining corpus earns one month of return (annual rate ÷ 12) and then the withdrawal is taken out. Repeating this for every month of the plan gives the final value; with a constant withdrawal it matches the closed-form formula shown. With a yearly step-up the withdrawal is raised at the start of each new year.
If the balance cannot cover a withdrawal, the remaining amount is paid out and the plan stops — that month is reported as how long the money lasts. The maximum sustainable withdrawal is the level monthly annuity payment that brings the corpus to exactly zero at the end of the period: P × i ÷ (1 − (1 + i)⁻ⁿ).
- P
- Initial corpus invested
- W
- Monthly withdrawal
- i
- Monthly return (annual rate ÷ 12 ÷ 100)
- n
- Number of months
Worked examples
₹50 lakh corpus, ₹30,000 a month at 8% for 15 years
Withdrawing ₹30,000 a month is only 7.2% of the corpus per year, less than the 8% it earns, so the corpus actually grows to about ₹61.5 lakh after paying out ₹54 lakh. You could withdraw up to ₹47,783 a month and still last exactly 15 years.
₹1 crore, ₹80,000 a month at 7% for 20 years
Withdrawing ₹9.6 lakh a year from ₹1 crore earning 7% draws the corpus down to zero after 18 years and 9 months, having paid out about ₹1.80 crore. Keeping withdrawals to ₹77,530 a month would last the full 20 years.
₹25 lakh, ₹20,000 a month rising 5% a year, at 9% for 10 years
Raising the withdrawal 5% each year to keep up with inflation, you take out about ₹30.2 lakh over ten years and still have roughly ₹14.3 lakh left, because the corpus earned about ₹19.5 lakh in returns.
Frequently asked questions
What is a Systematic Withdrawal Plan (SWP)?+
An SWP lets you redeem a fixed amount from a mutual fund at regular intervals, usually monthly, while the remaining units stay invested. It turns a lump sum into a regular income stream and is commonly used by retirees.
How is SWP taxed in India?+
Each SWP instalment is treated as a redemption of units, so only the gain portion is taxed as capital gains. For FY 2026-27 the rates introduced on 23 July 2024 still apply: equity-fund gains on units held over 12 months are long-term and taxed at 12.5% above ₹1.25 lakh a year, while shorter holdings are taxed at 20%. Gains on debt-fund units bought on or after 1 April 2023 are taxed at your slab rate.
What is a safe SWP withdrawal rate?+
Keeping the yearly withdrawal below the fund’s expected return lets the corpus last indefinitely. Many planners suggest 4–6% a year for long retirements, especially from equity-heavy funds whose returns fluctuate.
Which mutual funds are best for SWP?+
Retirees often use conservative hybrid, balanced advantage or debt funds for stability, while longer horizons may use equity or hybrid funds for growth. Choosing a fund is a personal decision best made with a SEBI-registered adviser.
Is SWP better than a fixed deposit?+
SWP can be more tax-efficient because only the gain in each withdrawal is taxed, while FD interest is fully taxed at your slab rate every year. However, mutual fund returns are not guaranteed, unlike FD interest.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.