SWP Calculator β Systematic Withdrawal Plan & Monthly Income Tool
πΈ Systematic Withdrawal Plan
SWP Calculator
How Long Will Your Mutual Fund Corpus Last?
Calculate how many years your invested corpus will sustain monthly withdrawals. See remaining balance year-by-year, total withdrawn, and the safe withdrawal rate for your fund returns.
Monthly WithdrawalCorpus SustainabilitySafe Withdrawal Rate
Retirement PlanningMutual Fund SWPYear-by-Year Table
Presets:
SWP Calculator Inputs
Total Invested Corpus
Starting amount in your mutual fund
βΉ
βΉ1 LβΉ5 Cr
Monthly Withdrawal
Fixed amount withdrawn every month
βΉ
βΉ1,000βΉ5 Lakh
Expected Annual Return (CAGR)
Conservative: 7β8% (debt). Balanced: 10β11%. Equity: 12β14%
%
0%20%
Withdrawal Period
How many years to plan for (0 = run until corpus depletes)
yr
0 (auto)50 yr
Annual Withdrawal Step-Up
Increase withdrawal % every year to match inflation
%
0% (fixed)20%
β
Corpus Status After 20 Years
βΉ1.23 Cr
Corpus still growing β SWP is sustainable
Total Withdrawn
βΉ72.0 L
Over 20 years
Returns Earned
βΉ95.3 L
While withdrawing
Withdrawal Rate vs Sustainable Rate
Safe <4%Caution 4β6%Risk >6%
Your rate: 7.2%/yr
Β· Sustainable: β€4β5%
How Your Corpus Is Used
59%
Withdrawn
Total WithdrawnβΉ72.0 L
Remaining CorpusβΉ1.23 Cr
Corpus Lastsβ years
Starting Corpus
βΉ50.0 L
Initial investment
Monthly Withdrawal
βΉ30,000
βΉ3.6 L/year
Corpus Lasts
β years
Before depletion
Remaining Balance
βΉ1.23 Cr
After 20 years
π Corpus Balance β Year by Year
Remaining Corpus
Withdrawn
Amount in βΉ Lakhs Β· Red zone = corpus depleted
π Year-by-Year Withdrawal Table
| Year | Monthly SWP | Annual Withdrawn | Returns Earned | Closing Balance |
|---|
SWP Formula β How Corpus Depletion Is Calculated
Each month: New Balance = Previous Balance Γ (1 + Monthly Rate) β Monthly Withdrawal
Monthly Rate = Annual CAGR Γ· 12
Safe Withdrawal Rate = Annual Withdrawal Γ· Corpus Γ 100
Corpus lasts forever when: Monthly Return Earned β₯ Monthly Withdrawal
Example: βΉ50L corpus, βΉ30K/mo withdrawal, 10% CAGR β Monthly return βΉ41,667 > βΉ30,000 β Corpus grows!
Monthly Rate = Annual CAGR Γ· 12
Safe Withdrawal Rate = Annual Withdrawal Γ· Corpus Γ 100
Corpus lasts forever when: Monthly Return Earned β₯ Monthly Withdrawal
Example: βΉ50L corpus, βΉ30K/mo withdrawal, 10% CAGR β Monthly return βΉ41,667 > βΉ30,000 β Corpus grows!
Safe Withdrawal Rate β The 4% Rule for Indian Investors
The globally popular "4% rule" (from the Trinity Study) suggests withdrawing 4% of your corpus annually keeps your portfolio sustainable for 30+ years. This was based on a 50/50 equity-bond US portfolio returning ~10% with ~3% inflation. For Indian investors, the equivalent "safe" rate depends on your fund returns and inflation assumption:
| Fund Type | Expected CAGR | Inflation Adj. | Safe Annual SWP% | On βΉ1 Crore Corpus |
|---|---|---|---|---|
| Liquid / Debt Fund | 7β8% | ~6% | 2β3% | βΉ1.7β2.5 L/yr (βΉ14β21K/mo) |
| Balanced Advantage Fund | 9β11% | ~6% | 3β4% | βΉ3β4 L/yr (βΉ25β33K/mo) |
| Large Cap / Flexicap | 11β13% | ~6% | 4β5% | βΉ4β5 L/yr (βΉ33β42K/mo) |
| Equity (Nifty 50 Index) | 12β14% | ~6% | 5β6% | βΉ5β6 L/yr (βΉ42β50K/mo) |
The key insight: if your monthly return earned (corpus Γ monthly rate) exceeds your monthly withdrawal, your corpus grows forever. When returns fall short of withdrawals, the corpus gradually depletes.
SWP vs FD vs Dividend Option β Which Is Better for Regular Income?
| Feature | Mutual Fund SWP | Bank FD (Monthly Interest) | Dividend Option MF |
|---|---|---|---|
| Return Potential | 8β14% (market-linked) | 6.5β7.5% (fixed) | Varies β not guaranteed |
| Tax (Equity Fund) | LTCG 12.5% on gains only | At income tax slab rate | 30% TDS if >βΉ5,000 (added to income) |
| Capital Preservation | Possible if rate < returns | Principal returns at maturity | NAV falls after dividend payout |
| Inflation Protection | Yes β equity beats inflation | No β real return may be negative | Partial |
| Flexibility | Anytime pause/change | Lock-in; penalty on exit | Can switch plan |
| Best For | Retirees with equity corpus | Risk-averse near-retirees | Not recommended post 2020 |
Why dividend option is no longer recommended: Post the 2020 budget change, mutual fund dividends are taxed at your income slab rate (up to 30%) and subject to 10% TDS if dividends exceed βΉ5,000/year. SWP gives better tax efficiency β only the capital gains portion of each redemption is taxed, not the principal returned.
SWP Tax Calculation β How Each Withdrawal Is Taxed
Each SWP Redemption = Units redeemed at current NAV
Taxable Gain = Redemption Amount β Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above βΉ1.25 Lakh/year
STCG Tax (equity, held <1 yr): 20% flat
Debt Fund: Gains added to income, taxed at slab rate
Key benefit: Only the GAIN portion is taxed β not the full SWP amount
Taxable Gain = Redemption Amount β Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above βΉ1.25 Lakh/year
STCG Tax (equity, held <1 yr): 20% flat
Debt Fund: Gains added to income, taxed at slab rate
Key benefit: Only the GAIN portion is taxed β not the full SWP amount
Because SWP redeems units on a FIFO (First In, First Out) basis, if you started your SIP or lumpsum investment more than a year before starting SWP, most redemptions will qualify as long-term capital gains β taxed at just 12.5% on gains above βΉ1.25 Lakh annually. For a βΉ30,000/month SWP from a fund with large unrealised gains, the effective tax rate is often less than 5% on total withdrawal.
How Much Corpus Do You Need for SWP?
| Monthly Income Needed | At 8% CAGR (Debt) | At 10% CAGR (Balanced) | At 12% CAGR (Equity) |
|---|---|---|---|
| βΉ10,000/mo | βΉ15 Lakh | βΉ12 Lakh | βΉ10 Lakh |
| βΉ25,000/mo | βΉ37.5 Lakh | βΉ30 Lakh | βΉ25 Lakh |
| βΉ50,000/mo | βΉ75 Lakh | βΉ60 Lakh | βΉ50 Lakh |
| βΉ1 Lakh/mo | βΉ1.5 Crore | βΉ1.2 Crore | βΉ1.0 Crore |
| βΉ2 Lakh/mo | βΉ3.0 Crore | βΉ2.4 Crore | βΉ2.0 Crore |
These are approximate minimums for corpus to last indefinitely (returns β₯ withdrawal). In practice, add 20β30% buffer for market volatility, inflation, and emergencies.
Frequently Asked Questions
What is SWP and how is it different from SIP?βΎ
SIP (Systematic Investment Plan) is monthly investing into a mutual fund β building a corpus over time. SWP (Systematic Withdrawal Plan) is the reverse β systematically redeeming from an existing corpus to generate monthly income. SWP is typically used post-retirement or when you have accumulated a large corpus and want to create a "pension" from it. Both are automated, flexible, and can be paused or stopped anytime. A complete wealth cycle: SIP during earning years β lumpsum corpus β SWP during retirement.
Can my SWP corpus grow while I'm withdrawing?βΎ
Yes β this is the goal of a well-structured SWP. If your fund earns more per month than you withdraw, your corpus grows. Example: βΉ1 Crore corpus at 12% CAGR earns βΉ1,00,000/month. If you withdraw only βΉ60,000/month, your corpus grows by βΉ40,000/month β it never depletes. This requires keeping your withdrawal rate below your fund's monthly return. In this calculator, when monthly returns exceed withdrawal, you'll see "Corpus growing β SWP sustainable forever" status.
What is the 4% rule and does it apply to India?βΎ
The 4% rule (from the 1994 Trinity Study) says withdrawing 4% of your corpus annually sustains a portfolio for 30+ years. It was based on US market returns and 3% US inflation. For India, with higher equity returns (12β14%) but also higher inflation (~6%), the equivalent safe rate is 5β6% for an equity-heavy portfolio. However, India also has higher sequence-of-returns risk (large market drawdowns). A practical Indian approach: withdraw 4β5% annually from a balanced fund, maintain 6β12 months of expenses in liquid assets as buffer, and review withdrawal rate annually.
How is SWP taxed in India?βΎ
Each SWP transaction redeems units at the current NAV. Only the capital gain (NAV at redemption minus cost of acquisition) is taxable β not the full SWP amount. For equity funds: LTCG (held >1 year) = 12.5% on gains above βΉ1.25 Lakh/year. STCG (held <1 year) = 20%. For debt funds: all gains taxed at income slab rate. In practice, if you invested a lump sum years ago, most of your SWP will be long-term and taxed at 12.5% only on the gain portion. This is significantly more tax-efficient than FD interest (taxed at full slab) or dividends.
Which mutual fund is best for SWP?βΎ
The best fund for SWP depends on your risk tolerance and time horizon. For conservative SWP (5β10 year horizon): Balanced Advantage Funds (BAF) β dynamic equity/debt allocation, lower volatility. Examples: HDFC Balanced Advantage, ICICI Pru Balanced Advantage. For moderate SWP (10β20 years): Large Cap or Flexicap funds. Examples: Parag Parikh Flexicap, Mirae Asset Large Cap. For aggressive SWP (20+ year horizon with large corpus): Nifty 50 Index Fund β lowest cost, market returns over long term. Key: SWP from equity funds works best when you have enough corpus that the sustainable rate covers your needs β otherwise consider parking corpus in lower-volatility funds.
Is this SWP calculator free?βΎ
100% free, no signup. Calculates remaining corpus year-by-year, total withdrawn, returns earned while withdrawing, and how long corpus lasts before depletion. Includes inflation step-up withdrawal, safe withdrawal rate indicator, corpus sustainability status (grows / depleting / depleted), year-by-year table, and SVG growth chart. Presets for conservative, balanced, growth, and retirement scenarios.
πΈ Systematic Withdrawal Plan
SWP Calculator
How Long Will Your Mutual Fund Corpus Last?
Calculate how many years your invested corpus will sustain monthly withdrawals. See remaining balance year-by-year, total withdrawn, and the safe withdrawal rate for your fund returns.
Monthly WithdrawalCorpus SustainabilitySafe Withdrawal Rate
Retirement PlanningMutual Fund SWPYear-by-Year Table
Presets:
SWP Calculator Inputs
Total Invested Corpus
Starting amount in your mutual fund
βΉ
βΉ1 LβΉ5 Cr
Monthly Withdrawal
Fixed amount withdrawn every month
βΉ
βΉ1,000βΉ5 Lakh
Expected Annual Return (CAGR)
Conservative: 7β8% (debt). Balanced: 10β11%. Equity: 12β14%
%
0%20%
Withdrawal Period
How many years to plan for (0 = run until corpus depletes)
yr
0 (auto)50 yr
Annual Withdrawal Step-Up
Increase withdrawal % every year to match inflation
%
0% (fixed)20%
β
Corpus Status After 20 Years
βΉ1.23 Cr
Corpus still growing β SWP is sustainable
Total Withdrawn
βΉ72.0 L
Over 20 years
Returns Earned
βΉ95.3 L
While withdrawing
Withdrawal Rate vs Sustainable Rate
Safe <4%Caution 4β6%Risk >6%
Your rate: 7.2%/yr
Β· Sustainable: β€4β5%
How Your Corpus Is Used
59%
Withdrawn
Total WithdrawnβΉ72.0 L
Remaining CorpusβΉ1.23 Cr
Corpus Lastsβ years
Starting Corpus
βΉ50.0 L
Initial investment
Monthly Withdrawal
βΉ30,000
βΉ3.6 L/year
Corpus Lasts
β years
Before depletion
Remaining Balance
βΉ1.23 Cr
After 20 years
π Corpus Balance β Year by Year
Remaining Corpus
Withdrawn
Amount in βΉ Lakhs Β· Red zone = corpus depleted
π Year-by-Year Withdrawal Table
| Year | Monthly SWP | Annual Withdrawn | Returns Earned | Closing Balance |
|---|
SWP Formula β How Corpus Depletion Is Calculated
Each month: New Balance = Previous Balance Γ (1 + Monthly Rate) β Monthly Withdrawal
Monthly Rate = Annual CAGR Γ· 12
Safe Withdrawal Rate = Annual Withdrawal Γ· Corpus Γ 100
Corpus lasts forever when: Monthly Return Earned β₯ Monthly Withdrawal
Example: βΉ50L corpus, βΉ30K/mo withdrawal, 10% CAGR β Monthly return βΉ41,667 > βΉ30,000 β Corpus grows!
Monthly Rate = Annual CAGR Γ· 12
Safe Withdrawal Rate = Annual Withdrawal Γ· Corpus Γ 100
Corpus lasts forever when: Monthly Return Earned β₯ Monthly Withdrawal
Example: βΉ50L corpus, βΉ30K/mo withdrawal, 10% CAGR β Monthly return βΉ41,667 > βΉ30,000 β Corpus grows!
Safe Withdrawal Rate β The 4% Rule for Indian Investors
The globally popular "4% rule" (from the Trinity Study) suggests withdrawing 4% of your corpus annually keeps your portfolio sustainable for 30+ years. This was based on a 50/50 equity-bond US portfolio returning ~10% with ~3% inflation. For Indian investors, the equivalent "safe" rate depends on your fund returns and inflation assumption:
| Fund Type | Expected CAGR | Inflation Adj. | Safe Annual SWP% | On βΉ1 Crore Corpus |
|---|---|---|---|---|
| Liquid / Debt Fund | 7β8% | ~6% | 2β3% | βΉ1.7β2.5 L/yr (βΉ14β21K/mo) |
| Balanced Advantage Fund | 9β11% | ~6% | 3β4% | βΉ3β4 L/yr (βΉ25β33K/mo) |
| Large Cap / Flexicap | 11β13% | ~6% | 4β5% | βΉ4β5 L/yr (βΉ33β42K/mo) |
| Equity (Nifty 50 Index) | 12β14% | ~6% | 5β6% | βΉ5β6 L/yr (βΉ42β50K/mo) |
The key insight: if your monthly return earned (corpus Γ monthly rate) exceeds your monthly withdrawal, your corpus grows forever. When returns fall short of withdrawals, the corpus gradually depletes.
SWP vs FD vs Dividend Option β Which Is Better for Regular Income?
| Feature | Mutual Fund SWP | Bank FD (Monthly Interest) | Dividend Option MF |
|---|---|---|---|
| Return Potential | 8β14% (market-linked) | 6.5β7.5% (fixed) | Varies β not guaranteed |
| Tax (Equity Fund) | LTCG 12.5% on gains only | At income tax slab rate | 30% TDS if >βΉ5,000 (added to income) |
| Capital Preservation | Possible if rate < returns | Principal returns at maturity | NAV falls after dividend payout |
| Inflation Protection | Yes β equity beats inflation | No β real return may be negative | Partial |
| Flexibility | Anytime pause/change | Lock-in; penalty on exit | Can switch plan |
| Best For | Retirees with equity corpus | Risk-averse near-retirees | Not recommended post 2020 |
Why dividend option is no longer recommended: Post the 2020 budget change, mutual fund dividends are taxed at your income slab rate (up to 30%) and subject to 10% TDS if dividends exceed βΉ5,000/year. SWP gives better tax efficiency β only the capital gains portion of each redemption is taxed, not the principal returned.
SWP Tax Calculation β How Each Withdrawal Is Taxed
Each SWP Redemption = Units redeemed at current NAV
Taxable Gain = Redemption Amount β Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above βΉ1.25 Lakh/year
STCG Tax (equity, held <1 yr): 20% flat
Debt Fund: Gains added to income, taxed at slab rate
Key benefit: Only the GAIN portion is taxed β not the full SWP amount
Taxable Gain = Redemption Amount β Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above βΉ1.25 Lakh/year
STCG Tax (equity, held <1 yr): 20% flat
Debt Fund: Gains added to income, taxed at slab rate
Key benefit: Only the GAIN portion is taxed β not the full SWP amount
Because SWP redeems units on a FIFO (First In, First Out) basis, if you started your SIP or lumpsum investment more than a year before starting SWP, most redemptions will qualify as long-term capital gains β taxed at just 12.5% on gains above βΉ1.25 Lakh annually. For a βΉ30,000/month SWP from a fund with large unrealised gains, the effective tax rate is often less than 5% on total withdrawal.
How Much Corpus Do You Need for SWP?
| Monthly Income Needed | At 8% CAGR (Debt) | At 10% CAGR (Balanced) | At 12% CAGR (Equity) |
|---|---|---|---|
| βΉ10,000/mo | βΉ15 Lakh | βΉ12 Lakh | βΉ10 Lakh |
| βΉ25,000/mo | βΉ37.5 Lakh | βΉ30 Lakh | βΉ25 Lakh |
| βΉ50,000/mo | βΉ75 Lakh | βΉ60 Lakh | βΉ50 Lakh |
| βΉ1 Lakh/mo | βΉ1.5 Crore | βΉ1.2 Crore | βΉ1.0 Crore |
| βΉ2 Lakh/mo | βΉ3.0 Crore | βΉ2.4 Crore | βΉ2.0 Crore |
These are approximate minimums for corpus to last indefinitely (returns β₯ withdrawal). In practice, add 20β30% buffer for market volatility, inflation, and emergencies.
Frequently Asked Questions
What is SWP and how is it different from SIP?βΎ
SIP (Systematic Investment Plan) is monthly investing into a mutual fund β building a corpus over time. SWP (Systematic Withdrawal Plan) is the reverse β systematically redeeming from an existing corpus to generate monthly income. SWP is typically used post-retirement or when you have accumulated a large corpus and want to create a "pension" from it. Both are automated, flexible, and can be paused or stopped anytime. A complete wealth cycle: SIP during earning years β lumpsum corpus β SWP during retirement.
Can my SWP corpus grow while I'm withdrawing?βΎ
Yes β this is the goal of a well-structured SWP. If your fund earns more per month than you withdraw, your corpus grows. Example: βΉ1 Crore corpus at 12% CAGR earns βΉ1,00,000/month. If you withdraw only βΉ60,000/month, your corpus grows by βΉ40,000/month β it never depletes. This requires keeping your withdrawal rate below your fund's monthly return. In this calculator, when monthly returns exceed withdrawal, you'll see "Corpus growing β SWP sustainable forever" status.
What is the 4% rule and does it apply to India?βΎ
The 4% rule (from the 1994 Trinity Study) says withdrawing 4% of your corpus annually sustains a portfolio for 30+ years. It was based on US market returns and 3% US inflation. For India, with higher equity returns (12β14%) but also higher inflation (~6%), the equivalent safe rate is 5β6% for an equity-heavy portfolio. However, India also has higher sequence-of-returns risk (large market drawdowns). A practical Indian approach: withdraw 4β5% annually from a balanced fund, maintain 6β12 months of expenses in liquid assets as buffer, and review withdrawal rate annually.
How is SWP taxed in India?βΎ
Each SWP transaction redeems units at the current NAV. Only the capital gain (NAV at redemption minus cost of acquisition) is taxable β not the full SWP amount. For equity funds: LTCG (held >1 year) = 12.5% on gains above βΉ1.25 Lakh/year. STCG (held <1 year) = 20%. For debt funds: all gains taxed at income slab rate. In practice, if you invested a lump sum years ago, most of your SWP will be long-term and taxed at 12.5% only on the gain portion. This is significantly more tax-efficient than FD interest (taxed at full slab) or dividends.
Which mutual fund is best for SWP?βΎ
The best fund for SWP depends on your risk tolerance and time horizon. For conservative SWP (5β10 year horizon): Balanced Advantage Funds (BAF) β dynamic equity/debt allocation, lower volatility. Examples: HDFC Balanced Advantage, ICICI Pru Balanced Advantage. For moderate SWP (10β20 years): Large Cap or Flexicap funds. Examples: Parag Parikh Flexicap, Mirae Asset Large Cap. For aggressive SWP (20+ year horizon with large corpus): Nifty 50 Index Fund β lowest cost, market returns over long term. Key: SWP from equity funds works best when you have enough corpus that the sustainable rate covers your needs β otherwise consider parking corpus in lower-volatility funds.
Is this SWP calculator free?βΎ
100% free, no signup. Calculates remaining corpus year-by-year, total withdrawn, returns earned while withdrawing, and how long corpus lasts before depletion. Includes inflation step-up withdrawal, safe withdrawal rate indicator, corpus sustainability status (grows / depleting / depleted), year-by-year table, and SVG growth chart. Presets for conservative, balanced, growth, and retirement scenarios.