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SWP Calculator

Systematic Withdrawal Plan — Calculate how long your retirement corpus lasts and find the sustainable monthly withdrawal amount that never depletes your wealth.

Corpus & Withdrawal Details

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Your retirement corpus / total invested amount
₹
Amount you wish to withdraw each month
%
Expected portfolio return while withdrawing
years
How long you plan to withdraw
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Enter corpus and withdrawal details to see your SWP plan

About SWP — Systematic Withdrawal Plan

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund corpus at regular intervals. It is commonly used during retirement to create a monthly income stream while keeping the remaining corpus invested and growing.

How SWP Works

Each month, your corpus first earns returns at the portfolio rate, and then the withdrawal amount is deducted. If returns exceed the withdrawal, the corpus grows. If withdrawals exceed returns, the corpus gradually depletes.

Sustainable Withdrawal Rate

  • The sustainable monthly withdrawal = Corpus × Monthly Return Rate. At this amount, you withdraw only the interest — the principal stays intact forever.
  • For a ₹1 Cr corpus at 8% return: Sustainable = ₹1,00,00,000 × (8%/12) ≈ ₹66,667/month.
  • Withdrawing above this rate gradually depletes the corpus.

SWP Tax Advantages

  • SWP from equity funds: LTCG of 10% (beyond ₹1L gain in a year) if held over 12 months.
  • Much more tax-efficient than FD interest, which is fully taxable as per slab.
  • Each SWP redemption is treated as a separate transaction — earlier units redeemed first (FIFO).

SWP vs FD Interest — Which Is Better?

  • FD Interest: Fully taxable at slab rate (30% for highest bracket). Real return is lower.
  • SWP from Equity MF: Only capital gain portion is taxable; return portion is tax-free.
  • Inflation: SWP corpus can grow with equity returns, protecting against inflation. FD may not.

Tips for a Successful SWP

  • Keep 1–2 years of expenses in liquid fund / FD as buffer before starting SWP.
  • Withdraw less than the sustainable rate for corpus preservation.
  • Review and adjust withdrawal annually based on returns and expenses.
  • Use a mix of debt and equity to balance growth and stability.