SWP Calculator
Check whether your corpus can sustain a fixed monthly withdrawal — see the total you take out, how many months the money lasts, and what remains at the end.
Reviewed by the CalcCafe editorial team · Last updated 18 July 2026 · How we test our tools
Example
Start with a corpus of ₹50,00,000, withdraw ₹30,000 every month, and assume the remaining money earns 8% a year over 10 years. Across 120 months you withdraw ₹36,00,000 in total — yet because the corpus earns roughly ₹33,333 a month at the start, more than the withdrawal, the balance actually grows to about ₹56,09,820 at the end. The corpus lasts the full 120 months with room to spare.
How it works
The calculator runs a month-by-month simulation for n = years × 12 months. Each month the balance first grows by the monthly rate (annual rate ÷ 1200), then the withdrawal is subtracted: bal = bal × (1 + r) − w. If the balance falls to zero or below, the simulation stops, the final corpus is shown as ₹0, and the months counter tells you how long the money lasted. Total withdrawn = withdrawal × months actually paid. If the corpus survives all n months, the remaining balance is your final corpus.
Good to know
A systematic withdrawal plan (SWP) is the mirror image of a SIP: instead of investing a fixed amount every month, you redeem a fixed amount from a mutual fund holding on a set date, typically to fund retirement expenses. The fund house sells just enough units at that day's NAV to pay you, and the rest of the corpus stays invested and keeps earning. Retirees often pair an SWP on a conservative hybrid or debt fund with the corpus built during their working years, because it creates a salary-like cash flow while the balance continues to compound.
The arithmetic hinges on the gap between your withdrawal rate and your return. In the example, ₹30,000 a month is 7.2% of the ₹50 lakh corpus per year, just below the assumed 8% return — so the corpus survives and even grows. Raise the withdrawal to ₹45,000 and the same corpus depletes steadily. A widely used planning guideline is to keep annual withdrawals near 4–5% of the corpus (adjusted for India's higher inflation, many planners suggest starting nearer 4%), which leaves a buffer for bad years and rising expenses. Test several withdrawal levels here to find where your corpus stops shrinking.
A flat-return simulation hides sequence-of-returns risk: in real markets, a crash in the first years of withdrawals forces you to sell more units at depressed prices, and the corpus may never recover even if long-run average returns match your assumption. Two retirees with the same average return but different orderings of good and bad years can end up with very different outcomes. Holding one to two years of withdrawals in liquid or short-duration funds, and trimming withdrawals after bad years, are common defences.
Each SWP instalment is a redemption for tax purposes, so it is taxed as capital gains — not as income like a pension or FD interest. Only the gain portion of each redemption is taxable: for equity funds, long-term gains above ₹1.25 lakh a year are taxed at 12.5%, while debt fund gains are taxed at your slab. Early in an SWP most of each withdrawal is your own capital, so the effective tax can be far lower than on interest income. This tool ignores exit loads, taxes and inflation — factor those in, or ask a fee-only adviser, before committing to a withdrawal level.
Frequently asked questions
What is an SWP and who is it for?
A systematic withdrawal plan redeems a fixed amount from your mutual fund investment every month, while the rest stays invested. It suits retirees and anyone converting a lump-sum corpus into a regular monthly cash flow instead of buying an annuity or living off interest.
How do I stop my corpus from running out?
Keep the annual withdrawal comfortably below the return you can reasonably expect — many planners suggest starting around 4-5% of the corpus per year. Test higher withdrawal amounts in the calculator and watch when the final corpus starts falling toward zero, then leave a margin for bad market years and inflation.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser. Your inputs never leave your device, and it works offline once loaded.
Is this calculator free?
Yes, completely free with no sign-up and no limits.
People also ask
How long will ₹50 lakh last with ₹30,000 monthly withdrawal?
If the corpus earns about 8% a year, ₹30,000 a month is sustainable indefinitely — the corpus even grows, reaching roughly ₹56 lakh after 10 years. If the money earns nothing, ₹50 lakh lasts about 166 months, or under 14 years. The earning rate makes all the difference.
Is SWP income taxable?
Each withdrawal is treated as a redemption, so only the capital-gain portion is taxed — not the full amount. Equity fund long-term gains above ₹1.25 lakh a year are taxed at 12.5%; debt fund gains are taxed at your income slab. This usually makes SWP more tax-efficient than FD interest.
What is sequence-of-returns risk in an SWP?
It is the danger that poor market years arrive early in your withdrawal phase. Selling units at depressed prices to fund withdrawals shrinks the corpus faster, and it may never recover even if average returns later improve. Keeping a cash buffer and flexible withdrawals reduces the risk.
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Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.