SWP Calculator
Calculate how long your mutual fund corpus will last with regular monthly withdrawals (Systematic Withdrawal Plan).
Final Corpus
₹1.39 Cr
Total Withdrawn
₹72.00 L
Annual Withdrawal
₹3.60 L
Corpus balance over 20 years
About the SWP Calculator
A Systematic Withdrawal Plan (SWP) is the retirement income tool most financial planners recommend but few investors use. You invest a lump sum in a mutual fund and withdraw a fixed monthly amount. If your corpus earns more than you withdraw, it actually grows over time. This is the intelligent alternative to breaking FDs every year - with better returns and more flexibility. The key question is: at what withdrawal rate does my corpus last forever?
SWP Corpus Balance Formula
Balance after each month = Previous balance × (1 + monthly return) - Monthly withdrawal
Monthly return = Annual expected return / 12 / 100 · Sustainable withdrawal rate: if annual withdrawal ≤ annual return, corpus never depletes · 4% rule: ₹1 crore corpus can sustain ₹33,333/month indefinitely at 8% return
Worked Example
₹50L corpus, ₹25,000/month withdrawal, 10% annual return
Monthly return on ₹50L = ₹41,667 · Withdrawal ₹25,000 < ₹41,667 → corpus grows over time · Corpus after 10 years ≈ ₹1.05 crore
Tips & Insights
- 1
The sustainable SWP rate is roughly 4-6% of corpus per year for a balanced equity-debt portfolio.
- 2
Increase withdrawal annually by 5-6% to maintain purchasing power as inflation erodes fixed amounts.
- 3
During market downturns, consider pausing SWP and living off cash reserves to avoid selling at low NAVs.
- 4
Balanced advantage funds and hybrid funds are suitable for SWP - they provide growth with lower volatility.
- 5
SWP from equity funds is tax-efficient: each withdrawal has a return-of-capital component taxed at LTCG (12.5%), not slab rate.
Why this matters for you
India has no universal pension system, and EPF alone is insufficient for comfortable retirement. SWP fills this gap - a ₹1 crore corpus generating ₹50,000/month tax-efficiently is the retirement strategy most planners recommend. The math here is more forgiving than most people think: a corpus that earns 10% while you withdraw 6% actually grows in real terms.
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