A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from a mutual fund every month while the rest stays invested. This SWP calculator shows how much you could withdraw in total, and whether your corpus lasts for the period you choose.
How the SWP calculator works
Each month, your remaining balance grows at the assumed return and then the withdrawal is taken out. If you enter a yearly increase, the withdrawal rises by that percentage at the start of each new year, which helps you account for inflation. If the balance runs out before the end of the period, the calculator tells you when.
For example, a corpus of ₹50 lakh with a fixed ₹30,000 monthly withdrawal and an assumed 8% return lasts the full 20 years and still leaves about ₹69.6 lakh. Increasing the withdrawal by 6% every year to keep pace with inflation changes the result considerably; try it in the calculator.
Points to remember
- Choose a realistic return. Many retirees keep SWP money mainly in debt or hybrid funds, which tend to be steadier but grow more slowly than equity.
- Each withdrawal is partly capital and partly gains; only the gains portion is taxed, at the rates applicable to that fund.
- Market falls early in the withdrawal period can shorten how long the corpus lasts, even if average returns are good.
Read more: Systematic Withdrawal Plans: turning your corpus into a monthly income and regular income options for retirees.
Mutual fund investments are subject to market risks. Please read all scheme related documents carefully before investing. This calculator is for educational purposes only and does not constitute investment advice.