SWP Calculator

Plan a Systematic Withdrawal Plan and see how long your investment lasts with regular monthly withdrawals.

What is the SWP Calculator?

An SWP withdraws a fixed amount from a mutual fund every month while the rest stays invested. It is commonly used to generate regular income in retirement.

How does it work?

Each month the withdrawal is taken first, then the remaining balance grows at the expected monthly return. If you enter an annual increase, withdrawals rise each year to offset inflation.

Formula

Balance_m = (Balance_(m−1) − Withdrawal) × (1 + i)

Example

₹50 lakh with ₹30,000 monthly withdrawals at 8% expected return still leaves a balance after 20 years, because withdrawals (7.2% a year) are below the return.

Frequently asked questions

How much can I withdraw safely?

Withdrawing less than the expected return keeps the corpus intact. With inflation-linked increases, a starting withdrawal rate of 3–5% a year is commonly considered sustainable.

How are SWP withdrawals taxed?

Each withdrawal redeems units, and only the gains portion is taxed as capital gains, which is often more tax-efficient than interest income.

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