SWP Calculator

What is SWP Calculator?

The SWP (Systematic Withdrawal Plan) Calculator estimates how long your mutual fund corpus will last when you withdraw a fixed amount monthly. It shows the remaining balance after each year while the corpus continues to earn returns.

How to Calculate SWP Returns

1. Enter your total investment corpus
2. Enter the monthly withdrawal amount you need
3. Enter the expected annual return rate (6–8% for hybrid/debt funds)
4. Click Calculate to see how long the corpus lasts and year-wise remaining balance

How SWP Calculator is Calculated

Remaining = Corpus × (1+r)ⁿ − W × [(1+r)ⁿ − 1] / r, where Corpus = initial investment, r = monthly return rate, W = monthly withdrawal, n = months. Your corpus depletes when remaining reaches zero.

Worked Example

₹50,00,000 corpus, ₹30,000/month withdrawal, 8% annual return: After 10 years, remaining corpus = ₹35,41,000. After 25 years, corpus = ₹5,18,000. The money lasts approximately 27 years.

Common Use Cases

• Retirement income planning
• Generating regular income from investments
• Estimating corpus longevity
• Comparing SWP vs annuity vs FD for income

Common Mistakes to Avoid

• Setting withdrawal rate too high — withdrawing more than 4–5% of corpus per year risks running out of money. The 4% rule is a common guideline.
• Not accounting for inflation — ₹30,000/month today will have much less purchasing power in 15 years. Consider increasing withdrawals annually.
• Confusing SWP with FD interest payouts — SWP partially redeems units, so the capital itself gets consumed. FD pays only interest.
• Ignoring tax on SWP withdrawals — gains on equity SWP are subject to LTCG (12.5%) above ₹1.25 lakh, and STCG (20%) for units held less than 1 year.

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Why You Need This Calculator

Systematic Withdrawal Plan is the reverse of SIP — you withdraw a fixed amount monthly from your mutual fund corpus. With India's retirement landscape shifting from pension-based to corpus-based, SWP has become essential for creating regular income. A ₹1 crore corpus in a balanced fund at 10% can sustain ₹65,000/month withdrawal for 25+ years.

Calculator Features

• Calculate sustainable monthly withdrawal amount
• Corpus depletion timeline projection
• Compare different withdrawal rates
• Visual corpus balance chart over time
• Tax-efficient withdrawal planning
• Inflation-adjusted withdrawal support

The Math Behind It

Corpus after n months = [Corpus × (1+r)^n] – [W × ((1+r)^n – 1)/r], where r = monthly return rate, W = monthly withdrawal. Sustainable withdrawal = Corpus × r / [1 – (1+r)^(-n)].

Calculation Example

Corpus ₹1,00,00,000, monthly withdrawal ₹65,000, expected return 10%. Monthly rate = 0.833%. After 20 years: corpus remaining ≈ ₹38 lakh. After 30 years: corpus depleted at year 27.

Quick Reference

SWP sustainability at different withdrawal levels

Pro Tips & Expert Insights

• 💡 Keep withdrawal rate below 6-7% annually to sustain corpus for 25+ years.
• 💡 SWP from equity funds after 1 year gets LTCG treatment (10% above ₹1.25L).
• 💡 Maintain 1-2 years of expenses in liquid funds as buffer during market downturns.
• 💡 Increase withdrawal by 5-6% annually to match inflation.
• 💡 Hybrid/balanced funds are ideal for SWP — less volatile than pure equity.

Who Benefits From This?

Retirees creating monthly income, early retirees (FIRE), NRIs managing India investments remotely, and anyone with a lumpsum seeking regular income.