Plan a systematic withdrawal plan (SWP) from a mutual fund or any corpus. Enter the starting amount, monthly withdrawal, expected return and period to see the balance year by year, the total you withdraw and whether, and when, the money runs out.
Last updated:
₹
₹
% p.a.
e.g. 6% to 7% for debt funds, 8% to 10% for hybrid funds. Returns are not guaranteed.
years
%
Optional step-up, e.g. 5% to keep pace with inflation.
Enter your values to see the result.
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How to use the SWP Calculator
Enter your corpus, the amount invested when withdrawals start.
Enter the monthly withdrawal you want to receive.
Set the expected annual return and the number of years.
Optionally add a yearly step-up to increase the payout each year.
Read the closing balance or depletion month, and check the yearly table and chart.
How an SWP is calculated
A systematic withdrawal plan (SWP) takes a fixed amount out of a mutual fund every month while the rest stays invested. Each month the remaining corpus earns the fund's return and then the withdrawal is paid:
Bm = Bm−1 × (1 + i) − W
where W is the monthly withdrawal and i = (1 + annual return)1/12 − 1 is the monthly return equivalent to the annual (CAGR) figure. For a level withdrawal the balance after m months has a closed form:
Bm = C(1 + i)m − W × ((1 + i)m − 1) ÷ i
Two useful limits follow. Withdrawing C × i a month never touches the principal. Withdrawing C × i ÷ (1 − (1 + i)−n) uses up the corpus exactly after n months.
Example: ₹25,00,000 at 8% a year with ₹20,000 a month for 20 years. The monthly return is about 0.6434%, so the corpus earns ≈ ₹16,085 in the first month while ₹20,000 is withdrawn. After 20 years you have withdrawn ₹48,00,000 and about ₹2,72,411 is still invested.
How long ₹10 lakh lasts
Level monthly withdrawals with no step-up.
Monthly withdrawal
6% return
8% return
10% return
₹5,000
lasts 60+ years
lasts 60+ years
lasts 60+ years
₹7,500
18 yr 0 mo
25 yr 5 mo
lasts 60+ years
₹10,000
11 yr 6 mo
13 yr 5 mo
16 yr 10 mo
₹12,500
8 yr 6 mo
9 yr 5 mo
10 yr 8 mo
SWP tips
Keep the withdrawal rate modest. Taking out more than the fund earns eats into capital, and a few bad market years early on can shorten the plan a lot (sequence-of-returns risk).
Use a step-up if you need the payout to keep up with inflation, and check that the corpus still lasts.
Tax: each SWP payout is partly a return of your own capital and partly a capital gain; only the gain portion is taxed, under the capital gains rules for the fund type and holding period.
Real returns vary from year to year. This calculator assumes a constant return, so review your plan regularly.
Frequently asked questions
What is an SWP?
A systematic withdrawal plan lets you redeem a fixed amount from a mutual fund at regular intervals, usually monthly. The remaining units stay invested and keep earning returns, which makes SWPs popular for retirement income.
How is the SWP balance calculated?
Each month the balance grows by the monthly return i = (1 + annual return)^(1/12) − 1, then the withdrawal is subtracted. With a level withdrawal, the balance after m months is C(1 + i)^m − W × ((1 + i)^m − 1) ÷ i.
How much can I withdraw without reducing my corpus?
Up to the monthly return: corpus × i. For ₹25 lakh at 8% a year that is about ₹16,085 a month. Anything above that slowly uses up the principal.
What happens when the withdrawal is higher than the returns?
The corpus shrinks every month, and the shrinking accelerates because a smaller balance earns less. The calculator shows the month when the balance runs out, if that happens within your chosen period.
How is SWP taxed in India?
Each withdrawal is treated as a redemption of units. Only the capital gain part of each redemption is taxed, according to the fund type (equity or debt) and how long the units were held; the part that returns your original investment is not taxed.
Is SWP better than a fixed deposit for monthly income?
An SWP from a suitable fund can be more tax-efficient and may earn more, but returns are not guaranteed and the value can fall. FD interest is fixed and safe but fully taxable each year. Many retirees combine both.
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