SWP Calculator
InvestmentA Systematic Withdrawal Plan turns a corpus into regular income while the remaining balance keeps earning returns.
In short: The SWP Calculator is a free online tool that lets you see how long your corpus lasts with regular monthly withdrawals — instantly, with charts, a worked example and the exact formula.
Your inputs
Your inputs
- Total investment
- ₹50,00,000
- Monthly withdrawal
- ₹30,000
- Expected return rate
- 9%
- Period
- 20 yrs
Total withdrawn
₹72,00,000
Final balance
₹1,00,09,152
Corpus survived the period
Corpus lasted
20
years
Remaining corpus
Your balance as withdrawals and growth play out.
Year-wise withdrawals
| Year | Withdrawn | Balance |
|---|---|---|
| 1 | ₹3,60,000 | ₹50,93,807 |
| 2 | ₹3,60,000 | ₹51,96,414 |
| 3 | ₹3,60,000 | ₹53,08,645 |
| 4 | ₹3,60,000 | ₹54,31,405 |
| 5 | ₹3,60,000 | ₹55,65,681 |
| 6 | ₹3,60,000 | ₹57,12,553 |
| 7 | ₹3,60,000 | ₹58,73,202 |
| 8 | ₹3,60,000 | ₹60,48,921 |
| 9 | ₹3,60,000 | ₹62,41,124 |
| 10 | ₹3,60,000 | ₹64,51,357 |
Withdrawals taken monthly; balance grows at the assumed rate.
How the SWP Calculator works
Formula
- W
- Monthly withdrawal
- r
- Monthly rate of return
- Balanceₜ
- Corpus after month t
Step-by-step calculation
Worked with the default values.
- 1
Monthly rate
9% ÷ 12
= 0.750%
- 2
Each month
balance × (1 + r) − withdrawal
= iterated
- 3
Final balance
after all withdrawals
= ₹1,00,09,152
How it works
- Each month the corpus first earns a return, then your withdrawal is deducted.
- If returns exceed withdrawals, the corpus can grow even as you draw income.
- If withdrawals outpace returns, the balance shrinks and may eventually run out.
Examples
₹50 lakh, withdrawing ₹30,000/month at 9% for 20 years
Provides steady income while retaining a substantial balance.
Understanding the SWP Calculator
How an SWP generates income
A Systematic Withdrawal Plan is the mirror image of a SIP. Instead of adding money each month, you withdraw a fixed amount from a mutual fund corpus while the rest stays invested. Each month the balance first earns its return, then your withdrawal is deducted. The calculator iterates this month by month to show how long the corpus lasts and what balance remains.
The key insight is that if returns exceed withdrawals, the corpus can actually grow even while paying you an income. If withdrawals outpace returns, the balance shrinks and may eventually run out.
Why retirees prefer an SWP
An SWP turns a lump sum into a steady, pension-like cash flow that you control, while keeping the money invested for potential growth. It is also notably tax-efficient: because each withdrawal is a partial redemption, only the embedded capital gain is taxed, not the whole amount. Compared with fully taxable FD interest, this can leave significantly more in your pocket, especially for equity funds held over a year.
What affects how long your corpus lasts
- Corpus size — the starting pool you draw from.
- Monthly withdrawal — how much income you take each month.
- Expected return — determines how fast the corpus replenishes.
- Time period — the horizon over which you need the income.
The relationship between withdrawal rate and return is decisive. A withdrawal rate at or below your return can sustain income indefinitely; one well above it guarantees depletion.
Common mistakes to avoid
The biggest risk is sequence-of-returns: a market crash in the early years, combined with fixed withdrawals, can permanently damage the corpus. Holding a year or two of withdrawals in a debt or liquid fund lets you avoid selling equity at the bottom. Another mistake is setting the withdrawal too high relative to realistic returns, which quietly exhausts the corpus. Finally, starting an SWP within the exit-load window needlessly costs about 1% on early redemptions — waiting past that period preserves more of your income.
Pros
- Provides a predictable, pension-like monthly income you fully control.
- The untouched corpus stays invested and can keep growing.
- More tax-efficient than FD interest — only the gain portion is taxed.
- Flexible: increase, decrease, pause or stop withdrawals anytime.
- Helps counter inflation better than fixed-income products over long retirements.
Cons
- Market downturns early on can deplete the corpus faster (sequence-of-returns risk).
- Returns are not guaranteed, so income sustainability depends on performance.
- Withdrawing above your return rate will eventually exhaust the corpus.
- Exit loads and capital gains tax can reduce net income if not planned well.
Tips
- 1Keep withdrawals near or below your expected return so the corpus survives the full period.
- 2Start the SWP after the exit-load period to avoid the 1% charge on early redemptions.
- 3Hold 1–2 years of withdrawals in a liquid or debt fund to ride out equity downturns.
- 4Review the withdrawal amount yearly and adjust for inflation and portfolio performance.
- 5Use a hybrid or balanced fund to reduce volatility on the corpus you are drawing from.
Frequently asked questions
Everything you need to know about the SWP Calculator.
What is an SWP used for?
What happens if I withdraw too much?
How is SWP income taxed in India?
What is a safe monthly withdrawal rate?
How is an SWP different from a dividend option?
Can I change or stop my SWP anytime?
Is an SWP good for retirement income?
Does an exit load apply to SWP withdrawals?
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