SWP Calculator (Systematic Withdrawal Plan)
Plan a Systematic Withdrawal Plan (SWP): draw a fixed monthly income from your corpus while the rest stays invested, and see whether it lasts your full time horizon — or when it runs out.
Withdrawal Plan
₹50 Lakh
7.2% of corpus / year
Balance After 25 Years
₹1.34 Crore
Total withdrawn: ₹90 Lakh
Withdrawal Schedule
| Year | Withdrawn | Growth | Balance |
|---|---|---|---|
| 1 | ₹3,60,000 | ₹4,53,807 | ₹50,93,807 |
| 2 | ₹3,60,000 | ₹4,62,607 | ₹51,96,414 |
| 3 | ₹3,60,000 | ₹4,72,232 | ₹53,08,645 |
| 4 | ₹3,60,000 | ₹4,82,760 | ₹54,31,405 |
| 5 | ₹3,60,000 | ₹4,94,276 | ₹55,65,681 |
| 6 | ₹3,60,000 | ₹5,06,872 | ₹57,12,553 |
| 7 | ₹3,60,000 | ₹5,20,649 | ₹58,73,202 |
| 8 | ₹3,60,000 | ₹5,35,719 | ₹60,48,921 |
| 9 | ₹3,60,000 | ₹5,52,203 | ₹62,41,124 |
| 10 | ₹3,60,000 | ₹5,70,233 | ₹64,51,357 |
| 11 | ₹3,60,000 | ₹5,89,954 | ₹66,81,311 |
| 12 | ₹3,60,000 | ₹6,11,525 | ₹69,32,837 |
| 13 | ₹3,60,000 | ₹6,35,120 | ₹72,07,957 |
| 14 | ₹3,60,000 | ₹6,60,929 | ₹75,08,886 |
| 15 | ₹3,60,000 | ₹6,89,158 | ₹78,38,043 |
| 16 | ₹3,60,000 | ₹7,20,035 | ₹81,98,078 |
| 17 | ₹3,60,000 | ₹7,53,809 | ₹85,91,887 |
| 18 | ₹3,60,000 | ₹7,90,751 | ₹90,22,638 |
| 19 | ₹3,60,000 | ₹8,31,158 | ₹94,93,796 |
| 20 | ₹3,60,000 | ₹8,75,356 | ₹1,00,09,152 |
| 21 | ₹3,60,000 | ₹9,23,700 | ₹1,05,72,851 |
| 22 | ₹3,60,000 | ₹9,76,579 | ₹1,11,89,430 |
| 23 | ₹3,60,000 | ₹10,34,418 | ₹1,18,63,848 |
| 24 | ₹3,60,000 | ₹10,97,683 | ₹1,26,01,532 |
| 25 | ₹3,60,000 | ₹11,66,883 | ₹1,34,08,415 |
How It Works
A Systematic Withdrawal Plan (SWP) is the reverse of a SIP: instead of investing a fixed amount monthly, you withdraw a fixed amount from an existing corpus while the balance stays invested and keeps earning returns. It is popular for generating a steady retirement income. Each month the corpus first grows by one month's return, then your withdrawal is deducted — so whether the corpus lasts depends on the tug-of-war between growth and withdrawals. If your withdrawal rate is below the return rate, the corpus can last indefinitely or even grow; if it is higher, the corpus depletes over time. This calculator simulates month by month and tells you either the balance remaining after your chosen period, or the exact point at which the money runs out. A key real-world nuance most tools ignore: each SWP withdrawal from a mutual fund is a partial redemption that can trigger capital gains tax, reducing your effective net income — factor that in when setting your withdrawal amount.
Formula
Each month: balance grows at return/12, then the fixed withdrawal is subtracted. The tool reports the balance after N years, or the month the corpus depletes.
Frequently Asked Questions
What is a safe SWP withdrawal rate?
A common guideline is to withdraw no more than about 4-6% of the corpus per year so it can last 25-30+ years. The exact safe rate depends on your expected return, time horizon, and inflation — this calculator shows how long any rate lasts.
Will my SWP corpus last forever?
Only if your annual withdrawal is less than the return the corpus earns. If you withdraw more than it grows, the balance shrinks each year and eventually depletes — the calculator shows exactly when.
Is SWP income taxable?
Each withdrawal is a partial redemption of your investment, so the gain portion is subject to capital gains tax (equity or debt rules apply). Only the gains are taxed, not the full withdrawal — but it does reduce your net income.
How is SWP different from a monthly dividend?
SWP is fully in your control — you decide the fixed amount and can change or stop it anytime, and the untouched corpus keeps compounding. Dividends are declared at the fund's discretion and are not guaranteed.
Should I use SWP for retirement income?
SWP is a popular retirement income tool because it gives predictable monthly cash flow while keeping the balance invested for growth. Pair it with a realistic withdrawal rate and account for taxes and inflation.