SWP Calculator — Systematic Withdrawal Plan & Monthly Income Tool
💸 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 See remaining balance year-by-year, total withdrawn, and the safe withdrawal rate for your fund returns.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
₹
₹1 L₹5 Cr
Monthly Withdrawal
Fixed amount withdrawn every month
₹
₹1,000₹5 Lakh
Expected Annual Return (CAGR)
Conservative: 7–8% (debt). Balanced: 10–11%. Equity: 12–14%
%
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%
✅
Corpus Status After 20 Years
₹1.23 Cr
Corpus still growing — SWP is sustainable
Total Withdrawn
₹72.0 L
Over 20 years
Returns Earned
₹95.3 L
While withdrawing
Withdrawal Rate vs Sustainable Rate
Safe <4%Caution 4–6%Risk >6%
Your rate: 7.2%/yr
· Sustainable: ≤4–5%
How Your Corpus Is Used
59%
Withdrawn
Total Withdrawn₹72.0 L
Remaining Corpus₹1.23 Cr
Corpus Lasts∞ years
Starting Corpus
₹50.0 L
Initial investment
Monthly Withdrawal
₹30,000
₹3.6 L/year
Corpus Lasts
∞ years
Before depletion
Remaining Balance
₹1.23 Cr
After 20 years
📊 Corpus Balance — Year by Year
Remaining Corpus
Withdrawn
Amount in ₹ Lakhs · Red zone = corpus depleted
📋 Year-by-Year Withdrawal Table
| Year | Monthly SWP | Annual Withdrawn | Returns Earned | Closing Balance |
|---|
SWP Formula — How Corpus Depletion Is Calculated
Each month: New Balance = Previous Balance × (1 + Monthly Rate) − Monthly Withdrawal
Monthly Rate = Annual CAGR ÷ 12
Safe Withdrawal Rate = Annual Withdrawal ÷ Corpus × 100
Corpus lasts forever when: Monthly Return Earned ≥ Monthly Withdrawal
Example: ₹50L corpus, ₹30K/mo withdrawal, 10% CAGR → Monthly return ₹41,667 > ₹30,000 → Corpus grows!
Monthly Rate = Annual CAGR ÷ 12
Safe Withdrawal Rate = Annual Withdrawal ÷ Corpus × 100
Corpus lasts forever when: Monthly Return Earned ≥ Monthly Withdrawal
Example: ₹50L corpus, ₹30K/mo withdrawal, 10% CAGR → Monthly return ₹41,667 > ₹30,000 → Corpus grows!
Safe Withdrawal Rate — 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 ₹1 Crore Corpus |
|---|---|---|---|---|
| Liquid / Debt Fund | 7–8% | ~6% | 2–3% | ₹1.7–2.5 L/yr (₹14–21K/mo) |
| Balanced Advantage Fund | 9–11% | ~6% | 3–4% | ₹3–4 L/yr (₹25–33K/mo) |
| Large Cap / Flexicap | 11–13% | ~6% | 4–5% | ₹4–5 L/yr (₹33–42K/mo) |
| Equity (Nifty 50 Index) | 12–14% | ~6% | 5–6% | ₹5–6 L/yr (₹42–50K/mo) |
The key insight: if your monthly return earned (corpus × 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 — Which Is Better for Regular Income?
| Feature | Mutual Fund SWP | Bank FD (Monthly Interest) | Dividend Option MF |
|---|---|---|---|
| Return Potential | 8–14% (market-linked) | 6.5–7.5% (fixed) | Varies — not guaranteed |
| Tax (Equity Fund) | LTCG 12.5% on gains only | At income tax slab rate | 30% TDS if >₹5,000 (added to income) |
| Capital Preservation | Possible if rate < returns | Principal returns at maturity | NAV falls after dividend payout |
| Inflation Protection | Yes — equity beats inflation | No — 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 ₹5,000/year. SWP gives better tax efficiency — only the capital gains portion of each redemption is taxed, not the principal returned.
SWP Tax Calculation — How Each Withdrawal Is Taxed
Each SWP Redemption = Units redeemed at current NAV
Taxable Gain = Redemption Amount − Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above ₹1.25 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 — not the full SWP amount
Taxable Gain = Redemption Amount − Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above ₹1.25 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 — 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 — taxed at just 12.5% on gains above ₹1.25 Lakh annually. For a ₹30,000/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) |
|---|---|---|---|
| ₹10,000/mo | ₹15 Lakh | ₹12 Lakh | ₹10 Lakh |
| ₹25,000/mo | ₹37.5 Lakh | ₹30 Lakh | ₹25 Lakh |
| ₹50,000/mo | ₹75 Lakh | ₹60 Lakh | ₹50 Lakh |
| ₹1 Lakh/mo | ₹1.5 Crore | ₹1.2 Crore | ₹1.0 Crore |
| ₹2 Lakh/mo | ₹3.0 Crore | ₹2.4 Crore | ₹2.0 Crore |
These are approximate minimums for corpus to last indefinitely (returns ≥ withdrawal). In practice, add 20–30% buffer for market volatility, inflation, and emergencies.
Frequently Asked Questions
What is SWP and how is it different from SIP?▾
SIP (Systematic Investment Plan) is monthly investing into a mutual fund — building a corpus over time. SWP (Systematic Withdrawal Plan) is the reverse — 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 → lumpsum corpus → SWP during retirement.
Can my SWP corpus grow while I'm withdrawing?▾
Yes — this is the goal of a well-structured SWP. If your fund earns more per month than you withdraw, your corpus grows. Example: ₹1 Crore corpus at 12% CAGR earns ₹1,00,000/month. If you withdraw only ₹60,000/month, your corpus grows by ₹40,000/month — 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 — SWP sustainable forever" status.
What is the 4% rule and does it apply to India?▾
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 (12–14%) but also higher inflation (~6%), the equivalent safe rate is 5–6% for an equity-heavy portfolio. However, India also has higher sequence-of-returns risk (large market drawdowns). A practical Indian approach: withdraw 4–5% annually from a balanced fund, maintain 6–12 months of expenses in liquid assets as buffer, and review withdrawal rate annually.
How is SWP taxed in India?▾
Each SWP transaction redeems units at the current NAV. Only the capital gain (NAV at redemption minus cost of acquisition) is taxable — not the full SWP amount. For equity funds: LTCG (held >1 year) = 12.5% on gains above ₹1.25 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?▾
The best fund for SWP depends on your risk tolerance and time horizon. For conservative SWP (5–10 year horizon): Balanced Advantage Funds (BAF) — dynamic equity/debt allocation, lower volatility. Examples: HDFC Balanced Advantage, ICICI Pru Balanced Advantage. For moderate SWP (10–20 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 — 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 — otherwise consider parking corpus in lower-volatility funds.
Is this SWP calculator free?▾
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.
💸 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
₹
₹1 L₹5 Cr
Monthly Withdrawal
Fixed amount withdrawn every month
₹
₹1,000₹5 Lakh
Expected Annual Return (CAGR)
Conservative: 7–8% (debt). Balanced: 10–11%. Equity: 12–14%
%
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%
✅
Corpus Status After 20 Years
₹1.23 Cr
Corpus still growing — SWP is sustainable
Total Withdrawn
₹72.0 L
Over 20 years
Returns Earned
₹95.3 L
While withdrawing
Withdrawal Rate vs Sustainable Rate
Safe <4%Caution 4–6%Risk >6%
Your rate: 7.2%/yr
· Sustainable: ≤4–5%
How Your Corpus Is Used
59%
Withdrawn
Total Withdrawn₹72.0 L
Remaining Corpus₹1.23 Cr
Corpus Lasts∞ years
Starting Corpus
₹50.0 L
Initial investment
Monthly Withdrawal
₹30,000
₹3.6 L/year
Corpus Lasts
∞ years
Before depletion
Remaining Balance
₹1.23 Cr
After 20 years
📊 Corpus Balance — Year by Year
Remaining Corpus
Withdrawn
Amount in ₹ Lakhs · Red zone = corpus depleted
📋 Year-by-Year Withdrawal Table
| Year | Monthly SWP | Annual Withdrawn | Returns Earned | Closing Balance |
|---|
SWP Formula — How Corpus Depletion Is Calculated
Each month: New Balance = Previous Balance × (1 + Monthly Rate) − Monthly Withdrawal
Monthly Rate = Annual CAGR ÷ 12
Safe Withdrawal Rate = Annual Withdrawal ÷ Corpus × 100
Corpus lasts forever when: Monthly Return Earned ≥ Monthly Withdrawal
Example: ₹50L corpus, ₹30K/mo withdrawal, 10% CAGR → Monthly return ₹41,667 > ₹30,000 → Corpus grows!
Monthly Rate = Annual CAGR ÷ 12
Safe Withdrawal Rate = Annual Withdrawal ÷ Corpus × 100
Corpus lasts forever when: Monthly Return Earned ≥ Monthly Withdrawal
Example: ₹50L corpus, ₹30K/mo withdrawal, 10% CAGR → Monthly return ₹41,667 > ₹30,000 → Corpus grows!
Safe Withdrawal Rate — 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 ₹1 Crore Corpus |
|---|---|---|---|---|
| Liquid / Debt Fund | 7–8% | ~6% | 2–3% | ₹1.7–2.5 L/yr (₹14–21K/mo) |
| Balanced Advantage Fund | 9–11% | ~6% | 3–4% | ₹3–4 L/yr (₹25–33K/mo) |
| Large Cap / Flexicap | 11–13% | ~6% | 4–5% | ₹4–5 L/yr (₹33–42K/mo) |
| Equity (Nifty 50 Index) | 12–14% | ~6% | 5–6% | ₹5–6 L/yr (₹42–50K/mo) |
The key insight: if your monthly return earned (corpus × 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 — Which Is Better for Regular Income?
| Feature | Mutual Fund SWP | Bank FD (Monthly Interest) | Dividend Option MF |
|---|---|---|---|
| Return Potential | 8–14% (market-linked) | 6.5–7.5% (fixed) | Varies — not guaranteed |
| Tax (Equity Fund) | LTCG 12.5% on gains only | At income tax slab rate | 30% TDS if >₹5,000 (added to income) |
| Capital Preservation | Possible if rate < returns | Principal returns at maturity | NAV falls after dividend payout |
| Inflation Protection | Yes — equity beats inflation | No — 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 ₹5,000/year. SWP gives better tax efficiency — only the capital gains portion of each redemption is taxed, not the principal returned.
SWP Tax Calculation — How Each Withdrawal Is Taxed
Each SWP Redemption = Units redeemed at current NAV
Taxable Gain = Redemption Amount − Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above ₹1.25 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 — not the full SWP amount
Taxable Gain = Redemption Amount − Cost of those units (purchase price)
LTCG Tax (equity, held >1 yr): 12.5% on gains above ₹1.25 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 — 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 — taxed at just 12.5% on gains above ₹1.25 Lakh annually. For a ₹30,000/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) |
|---|---|---|---|
| ₹10,000/mo | ₹15 Lakh | ₹12 Lakh | ₹10 Lakh |
| ₹25,000/mo | ₹37.5 Lakh | ₹30 Lakh | ₹25 Lakh |
| ₹50,000/mo | ₹75 Lakh | ₹60 Lakh | ₹50 Lakh |
| ₹1 Lakh/mo | ₹1.5 Crore | ₹1.2 Crore | ₹1.0 Crore |
| ₹2 Lakh/mo | ₹3.0 Crore | ₹2.4 Crore | ₹2.0 Crore |
These are approximate minimums for corpus to last indefinitely (returns ≥ withdrawal). In practice, add 20–30% buffer for market volatility, inflation, and emergencies.
Frequently Asked Questions
What is SWP and how is it different from SIP?▾
SIP (Systematic Investment Plan) is monthly investing into a mutual fund — building a corpus over time. SWP (Systematic Withdrawal Plan) is the reverse — 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 → lumpsum corpus → SWP during retirement.
Can my SWP corpus grow while I'm withdrawing?▾
Yes — this is the goal of a well-structured SWP. If your fund earns more per month than you withdraw, your corpus grows. Example: ₹1 Crore corpus at 12% CAGR earns ₹1,00,000/month. If you withdraw only ₹60,000/month, your corpus grows by ₹40,000/month — 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 — SWP sustainable forever" status.
What is the 4% rule and does it apply to India?▾
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 (12–14%) but also higher inflation (~6%), the equivalent safe rate is 5–6% for an equity-heavy portfolio. However, India also has higher sequence-of-returns risk (large market drawdowns). A practical Indian approach: withdraw 4–5% annually from a balanced fund, maintain 6–12 months of expenses in liquid assets as buffer, and review withdrawal rate annually.
How is SWP taxed in India?▾
Each SWP transaction redeems units at the current NAV. Only the capital gain (NAV at redemption minus cost of acquisition) is taxable — not the full SWP amount. For equity funds: LTCG (held >1 year) = 12.5% on gains above ₹1.25 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?▾
The best fund for SWP depends on your risk tolerance and time horizon. For conservative SWP (5–10 year horizon): Balanced Advantage Funds (BAF) — dynamic equity/debt allocation, lower volatility. Examples: HDFC Balanced Advantage, ICICI Pru Balanced Advantage. For moderate SWP (10–20 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 — 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 — otherwise consider parking corpus in lower-volatility funds.
Is this SWP calculator free?▾
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.