SWP Calculator
Plan monthly withdrawals from your mutual fund corpus — see how long your money lasts, with inflation-adjusted or step-up withdrawals and a year-by-year breakdown.
Final balance after 20 years
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Total invested
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Total withdrawn
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Return earned
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Final balance
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Balance vs withdrawals
Year-by-year breakdown
How withdrawals and returns change your balance each year.
| Year | Withdrawn | Return | Balance |
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How the SWP calculator works
A Systematic Withdrawal Plan (SWP) turns a lump-sum mutual fund investment into a regular monthly income. Every month your balance earns a return and your chosen withdrawal is taken out, so the balance evolves as:
- New balance = (Balance − Withdrawal) × (1 + monthly return)
The calculator runs this month by month for your chosen period and tells you the single most important thing about an SWP — how long your money will last. If your withdrawals are smaller than the returns your corpus generates, the balance can even keep growing.
Make your SWP last: withdrawal rate matters
The key to a sustainable SWP is keeping your annual withdrawal below your expected return. Drawing ₹10,000 a month (₹1.2 lakh a year) from a ₹20 lakh corpus is a 6% withdrawal rate — comfortably below an 8% return, so it can last decades. Push the withdrawal too high and the corpus depletes quickly, as the chart above will show. Add an annual increase to keep your income rising with inflation and see the realistic impact.
Why SWP is tax-efficient
Unlike FD interest, where the entire interest is taxable, only the gain portion of each SWP withdrawal is taxed. Each withdrawal is partly your own capital and partly profit, so the taxable amount — and the tax — is much lower. For equity funds, long-term capital gains enjoy an annual exemption, making SWP one of the most efficient ways to draw a retirement income.
SIP to SWP: the full journey
Most investors build their corpus with a monthly SIP during their working years, then switch to an SWP after retirement to draw a steady income from it. Plan the build-up phase with the SIP calculator and the retirement drawdown here, or check your overall target with the FIRE calculator.
Frequently asked questions
What is a Systematic Withdrawal Plan (SWP)?
An SWP lets you withdraw a fixed amount from your mutual fund investment at regular intervals — usually monthly — while the remaining balance stays invested and keeps earning returns. It is the opposite of an SIP: instead of putting money in every month, you take a regular income out. It is popular for generating a steady, tax-efficient retirement income.
How is SWP calculated?
Each month your balance earns a return, and your fixed withdrawal is taken out. So the balance changes as: new balance = (old balance − withdrawal) × (1 + monthly return). Because you keep withdrawing, the corpus slowly reduces; if your withdrawals are smaller than the returns, the corpus can even keep growing. This calculator runs that month-by-month and shows exactly when (or if) your money runs out.
How long will my SWP corpus last?
It depends on your corpus size, monthly withdrawal and expected return. If your withdrawal rate is below your return, the corpus lasts indefinitely. If it is higher, the corpus depletes over time. The calculator shows the exact number of years and months your money will last, and highlights it above so you can adjust the withdrawal to a sustainable level.
What is an inflation-adjusted or step-up SWP?
A fixed withdrawal loses purchasing power over time due to inflation. With an inflation-adjusted (step-up) SWP, you increase your withdrawal by a set percentage every year so your income keeps pace with rising costs. Set the "annual increase" field above to model this — it makes the projection far more realistic for retirement planning.
How is SWP taxed?
Only the gain portion of each withdrawal is taxed, not the whole amount — this is what makes SWP tax-efficient. For equity funds, gains are taxed as capital gains (short-term if units are held under a year, long-term after, with an annual exemption on long-term gains). For debt funds, gains are taxed at your slab rate. Because each withdrawal is part principal and part gain, the effective tax is usually much lower than on FD interest.
SWP vs SIP — how are they different?
An SIP is an accumulation tool — you invest a fixed amount every month to build a corpus. An SWP is a distribution tool — you withdraw a fixed amount every month from an existing corpus. Many people run an SIP during their working years and switch to an SWP after retirement to draw a regular income. Use our SIP calculator to plan the build-up phase.