SWP Calculator (2026) – Systematic Withdrawal Plan Returns, Monthly Income & Remaining Corpus
📈 Calculate Monthly Withdrawal, Remaining Corpus & Total Payout
SWP Calculator – Systematic Withdrawal Plan
Initial Investment (Corpus) ₹10,00,000
Monthly Withdrawal Amount ₹10,000
Expected Annual Return (% p.a.) 12%
Withdrawal Period (Years) 10 Years
Remaining Corpus After Withdrawals
₹–
Initial Investment₹10,00,000
Monthly Withdrawal₹10,000/month
Total Withdrawal (Payout)₹12,00,000
Investment Growth Earned₹–
Remaining Corpus₹–
Corpus StatusCalculating…
💡 Enter details and click Calculate SWP.
Withdrawal vs Remaining Corpus
Total Withdrawal
Remaining Corpus
Year-wise Corpus Balance Table
Watch how your corpus balance changes each year after monthly withdrawals. Green = corpus growing, Orange = corpus shrinking, Red = corpus depleted.
| Year | Opening Balance | Investment Growth | Annual Withdrawal | Closing Balance |
|---|
What is SWP & How to Use This Calculator
A Systematic Withdrawal Plan (SWP) is the opposite of a SIP. Instead of investing a fixed amount every month, in SWP you withdraw a fixed amount every month from your mutual fund corpus. The remaining amount continues to stay invested and grow at the expected return rate. SWP is widely used for retirement income planning, regular cash flow from lump sum investments, and as a tax-efficient alternative to FD interest income.
Think of SWP as a personal pension plan from your mutual fund. You park a large corpus — built through years of SIP investing or a lumpsum — and then start a monthly SWP to receive regular income. If your corpus grows faster than your withdrawal rate, the corpus can actually grow over time even as you withdraw every month.
How to Use This SWP Calculator
- Initial Investment: The total corpus you are starting the SWP with. This could be your accumulated SIP corpus, a lumpsum FD maturity, retirement gratuity, or any other one-time amount.
- Monthly Withdrawal: The fixed amount you want to receive every month. A sustainable withdrawal rate is typically 0.5%–0.7% of corpus per month (6%–8.4% annually). Withdrawing too much depletes the corpus faster than growth replenishes it.
- Expected Annual Return: The return your investment continues to earn while SWP is running. Use 10%–12% for equity mutual funds and 6%–8% for debt/hybrid funds.
- Withdrawal Period: How many years you plan to withdraw monthly. For retirement planning, use your expected retirement duration (typically 20–30 years for Indian retirees).
💡 The Golden Rule of SWP: If your annual withdrawal rate is less than your annual return rate, your corpus will grow even while you withdraw. Example: ₹10 lakh corpus at 12% return with ₹5,000/month (6% annual withdrawal rate) — corpus will keep growing. But ₹10 lakh at 12% with ₹12,000/month (14.4% annual withdrawal rate) — corpus will deplete within 8–9 years.
SWP Formula & Calculation Explained
SWP is calculated month by month — at the start of each month, the previous month’s closing balance earns one month’s return, then the withdrawal is deducted to arrive at the new closing balance.
Month-by-Month SWP Formula
Balance(m) = Balance(m-1) × (1 + r) – W
Where:
Balance(m) = Corpus at end of month m
r = Monthly return rate = Annual Rate ÷ 12 ÷ 100
W = Monthly withdrawal amount
Example: ₹10,00,000 corpus at 12% p.a., ₹10,000/month withdrawal
Month 1: 10,00,000 × (1 + 0.01) – 10,000 = 10,10,000 – 10,000 = ₹10,00,000
Month 2: 10,00,000 × 1.01 – 10,000 = ₹10,00,000 (stable!)
At exactly 1% monthly return and ₹10,000 withdrawal on ₹10,00,000 — corpus is perfectly sustainable indefinitely.
Where:
Balance(m) = Corpus at end of month m
r = Monthly return rate = Annual Rate ÷ 12 ÷ 100
W = Monthly withdrawal amount
Example: ₹10,00,000 corpus at 12% p.a., ₹10,000/month withdrawal
Month 1: 10,00,000 × (1 + 0.01) – 10,000 = 10,10,000 – 10,000 = ₹10,00,000
Month 2: 10,00,000 × 1.01 – 10,000 = ₹10,00,000 (stable!)
At exactly 1% monthly return and ₹10,000 withdrawal on ₹10,00,000 — corpus is perfectly sustainable indefinitely.
Sustainable Withdrawal Rate Formula
Max Sustainable Monthly Withdrawal = Corpus × Monthly Return Rate
Example: ₹50,00,000 corpus at 12% p.a. (1% monthly)
Max Sustainable Withdrawal = 50,00,000 × 0.01 = ₹50,000/month
At this rate, the corpus never depletes — only investment returns are withdrawn.
Withdrawing less = corpus grows. Withdrawing more = corpus slowly depletes.
Example: ₹50,00,000 corpus at 12% p.a. (1% monthly)
Max Sustainable Withdrawal = 50,00,000 × 0.01 = ₹50,000/month
At this rate, the corpus never depletes — only investment returns are withdrawn.
Withdrawing less = corpus grows. Withdrawing more = corpus slowly depletes.
How Long Will Your Corpus Last?
If Withdrawal > Monthly Growth:
Net monthly depletion = W – (Corpus × r)
Example: ₹10,00,000 at 8% p.a. (0.667%/month), ₹15,000/month withdrawal
Monthly growth = 10,00,000 × 0.00667 = ₹6,667
Net depletion = 15,000 – 6,667 = ₹8,333/month
Corpus depletes in approximately 10,00,000 ÷ 8,333 = ~120 months (10 years)
(Actual time is longer because depletion accelerates as corpus shrinks — use calculator for precision)
Net monthly depletion = W – (Corpus × r)
Example: ₹10,00,000 at 8% p.a. (0.667%/month), ₹15,000/month withdrawal
Monthly growth = 10,00,000 × 0.00667 = ₹6,667
Net depletion = 15,000 – 6,667 = ₹8,333/month
Corpus depletes in approximately 10,00,000 ÷ 8,333 = ~120 months (10 years)
(Actual time is longer because depletion accelerates as corpus shrinks — use calculator for precision)
💬 Equity vs Debt for SWP: For long-term SWP (10+ years), equity mutual funds (10–12% p.a.) provide better sustainability than debt funds (6–8% p.a.) because higher returns can sustain higher withdrawals. However, equity funds have short-term volatility — your corpus may temporarily fall in a market downturn. A balanced/hybrid fund (8–10% p.a.) often provides the best combination of stability and reasonable returns for retirement SWP.
SWP Reference Table – How Long Corpus Lasts at Different Withdrawal Rates
This table shows how long a corpus lasts at various monthly withdrawal amounts and return rates. Green cells indicate the corpus is sustainable (doesn’t deplete in 30 years). Red indicates depletion years.
₹50 Lakh Corpus – Monthly Withdrawal vs Duration at Different Returns
| Monthly Withdrawal | @ 8% p.a. | @ 10% p.a. | @ 12% p.a. | Sustainable? (12%) |
|---|---|---|---|---|
| ₹20,000 | 30+ yrs | 30+ yrs | 30+ yrs | Yes – corpus grows |
| ₹30,000 | 28 yrs | 30+ yrs | 30+ yrs | Yes (borderline) |
| ₹40,000 | 17 yrs | 25 yrs | 30+ yrs | Yes – slowly grows |
| ₹50,000 | 13 yrs | 19 yrs | 28 yrs | Marginally |
| ₹60,000 | 10 yrs | 15 yrs | 22 yrs | No – depletes |
| ₹80,000 | 7 yrs | 10 yrs | 15 yrs | No – depletes fast |
₹1 Crore Corpus – Monthly Income SWP at 12% p.a.
| Monthly Withdrawal | Annual Withdrawal | 10-Year Remaining Corpus | 20-Year Remaining Corpus | Status |
|---|---|---|---|---|
| ₹30,000 | ₹3.6L/yr (3.6%) | ₹2.05 Cr | ₹4.82 Cr | Growing rapidly |
| ₹50,000 | ₹6L/yr (6%) | ₹1.43 Cr | ₹2.28 Cr | Sustainable |
| ₹80,000 | ₹9.6L/yr (9.6%) | ₹87 L | ₹65 L | Slowly depleting |
| ₹1,00,000 | ₹12L/yr (12%) | ₹55 L | Depleted in ~17 yrs | Depletes |
*All values at 12% p.a. annual return. Actual returns vary. For retirement planning, use a conservative 8–10% assumption.
SWP vs SIP – Key Differences
SWP and SIP are mirror images of each other. Understanding the difference helps you use each at the right life stage — SIP during the wealth accumulation phase, SWP during the wealth distribution phase.
| Feature | SIP (Systematic Investment Plan) | SWP (Systematic Withdrawal Plan) |
|---|---|---|
| Direction of Cash Flow | Money goes INTO mutual fund each month | Money comes OUT of mutual fund each month |
| Purpose | Wealth accumulation / building corpus | Wealth distribution / regular income |
| Best Life Stage | Working years (20–55 years) | Retirement / post-retirement (55+ years) |
| Effect on Corpus | Corpus grows with each instalment | Corpus may grow or deplete depending on withdrawal rate |
| Tax Treatment | No tax on SIP investment | Each withdrawal is taxed as capital gains redemption |
| Flexibility | Can pause, stop, increase, decrease anytime | Can pause, stop, change amount anytime |
| Minimum Amount | ₹100–500/month | ₹500–1,000/month (fund-specific) |
| Inflation Protection | Wealth grows faster than inflation in equity | Need to step-up withdrawal annually for inflation |
SIP + SWP — The Complete Lifecycle Strategy
The most effective mutual fund wealth strategy in India follows a two-phase approach:
- Phase 1 (Working Years, Age 25–55): SIP ₹10,000–50,000/month in equity funds for 20–30 years. Build a corpus of ₹1–5 crore.
- Phase 2 (Retirement, Age 55+): Stop SIP, move corpus to balanced/debt fund, start SWP for monthly income. At ₹2 crore corpus and 10% return, ₹1.5 lakh/month SWP is sustainable for 20+ years.
💡 Step-up your SWP annually: Inflation erodes the purchasing power of a fixed monthly withdrawal. ₹50,000/month in 2026 will have the purchasing power of only ₹28,000 in 2038 at 5% inflation. Increase your SWP amount by 5–7% annually to maintain real income. Most fund houses allow you to modify SWP amounts online.
Using SWP for Retirement Income Planning in India
SWP from mutual funds is increasingly being recommended over traditional options like FD interest and annuity plans for retirement income in India. Here is why — and how to structure it correctly.
Why SWP is Better Than FD Interest for Retirement
- Higher returns: Equity/balanced mutual funds at 8–12% vs FD at 7–8% p.a.
- Tax efficiency: FD interest is taxed at your full income slab rate. SWP from equity funds held over 1 year attracts 12.5% LTCG tax only on the gain component — the principal portion of each SWP is tax-free
- Inflation beating: Equity SWP corpus grows over time and can be stepped up; FD interest is fixed and loses real value each year
- Flexibility: FD requires breaking the entire deposit for extra cash; SWP can be paused or modified anytime without penalties
- Corpus preservation: Well-structured SWP from a growing corpus can provide income for 25–30 years while preserving or even growing the original corpus
Practical SWP Retirement Plan – Example
| Corpus Size | Recommended Monthly SWP | Annual Withdrawal Rate | Expected Sustainability (@ 10% return) |
|---|---|---|---|
| ₹50 Lakhs | ₹25,000–35,000 | 6–8.4% | 25–30+ years |
| ₹1 Crore | ₹50,000–70,000 | 6–8.4% | 25–30+ years |
| ₹2 Crore | ₹1,00,000–1,40,000 | 6–8.4% | 25–30+ years |
| ₹3 Crore | ₹1,50,000–2,10,000 | 6–8.4% | 25–30+ years |
| ₹5 Crore | ₹2,50,000–3,50,000 | 6–8.4% | Indefinitely sustainable |
💬 The 4% withdrawal rule adapted for India: The popular 4% rule (withdraw 4% of corpus annually for 30-year sustainability) works for Western inflation rates of 2–3%. For India with 5–6% inflation and 10–12% equity returns, the safe withdrawal rate is approximately 6–7% annually (0.5–0.6% monthly). On ₹1 crore, this means ₹50,000–60,000/month — sufficient for comfortable retirement in most Indian cities.
Tax on SWP Withdrawals in India (FY 2026-27)
Unlike FD interest which is fully taxed at your income slab rate, SWP withdrawals are treated as partial redemptions of mutual fund units — and only the gain portion of each withdrawal is taxable, not the entire withdrawal amount. This makes SWP significantly more tax-efficient than FD for retirees in the 20%–30% tax bracket.
How SWP Tax is Calculated
Each SWP withdrawal redeems some mutual fund units at the current NAV. The taxable gain = Current NAV × Units redeemed – Cost of those units at purchase NAV. Only this gain portion is taxable:
| Fund Type | Holding Period | Tax Rate | Effective Tax on ₹50,000 Withdrawal (gain = ₹20,000) |
|---|---|---|---|
| Equity Mutual Fund | More than 1 year | 12.5% LTCG on gains above ₹1.25L/year | ₹2,500 (5% effective) |
| Equity Mutual Fund | Less than 1 year | 20% STCG | ₹4,000 (8% effective) |
| Debt Mutual Fund | Any period | As per income slab | ₹6,000–8,000 (30% slab) |
| FD Interest (for comparison) | N/A | Full slab rate on entire interest | ₹15,000 (30% slab on full interest) |
⚠ Important note on LTCG exemption: LTCG from equity mutual funds is exempt up to ₹1.25 lakh per financial year. For a retiree doing SWP of ₹50,000/month with say 40% gain component, annual gains = approximately ₹2.4 lakhs — only the amount above ₹1.25L is taxed at 12.5%. This means actual tax on SWP is very low for most retirees. Always consult a tax professional for personalised advice.
Frequently Asked Questions – SWP Calculator
What is SWP in mutual funds?
SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount from your mutual fund investment every month. The remaining corpus stays invested and continues to earn returns. SWP is used for retirement income, regular cash flow from lump sum investments, or as a tax-efficient alternative to FD interest. Unlike traditional pension plans or annuities, SWP gives you complete control — you can change the withdrawal amount, pause, or stop anytime.
How much SWP can I do on ₹50 lakhs?
On a ₹50 lakh corpus at 10% annual return, a sustainable monthly SWP is approximately ₹25,000–35,000/month (6–8.4% annual withdrawal rate). At ₹25,000/month, the corpus will actually grow over 20 years. At ₹40,000/month, the corpus lasts approximately 25 years. At ₹50,000/month (12% annual withdrawal rate exceeding returns), the corpus depletes in 13–15 years. Use our calculator above with your specific return assumption for accurate projections.
Is SWP better than FD for retirement?
For most Indian retirees, SWP from balanced or equity mutual funds is more advantageous than FD interest for three reasons: (1) Higher post-tax returns — equity SWP LTCG is taxed at 12.5% only on gain, vs FD interest taxed at full slab rate (20%–30%); (2) Inflation protection — equity corpus grows over time; FD interest is fixed and loses real value each year; (3) Flexibility — SWP amount can be changed anytime; breaking an FD incurs penalties. FD is better for short durations (1–3 years) or very conservative retirees who prioritise capital safety absolutely.
What is a safe SWP withdrawal rate in India?
For India, a safe annual SWP withdrawal rate is 6–7% of the initial corpus (0.5–0.58% monthly), assuming investment in balanced or equity mutual funds at 10–12% annual return. This ensures the corpus lasts 25–30+ years and may even grow in real terms. The popular “4% rule” from US research is too conservative for India (where higher returns are achievable) — 6% is the India-appropriate safe withdrawal rate. Withdrawing above 8–9% annually risks significant corpus depletion within 15–20 years.
Can I start SWP immediately after investing a lumpsum?
Yes, SWP can be started immediately after a lumpsum investment with most fund houses. However, if you start SWP within 1 year of investment in equity funds, the withdrawals attract Short Term Capital Gains (STCG) tax at 20% on gains. For tax efficiency, it is better to wait 12 months after the lumpsum investment before starting SWP — so all withdrawals attract LTCG tax at 12.5% (with ₹1.25L exemption annually) instead of 20% STCG.
What happens if corpus goes to zero in SWP?
If the corpus depletes to zero, the SWP automatically stops — no more withdrawals are processed and no debt is created. The fund simply closes the account. This is the key risk of SWP: if your withdrawal rate exceeds your return rate, the corpus depletes over time and eventually hits zero. To avoid this, always set withdrawals at or below the monthly return earned (corpus × monthly return rate). Our calculator’s year-wise table shows corpus balance each year — you can see exactly when the corpus might deplete based on your inputs.