SWP Calculator

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investment at regular intervals (usually monthly). The remaining corpus stays invested and continues to earn returns. It is commonly used by retirees to generate a regular income stream from their accumulated savings.

The duration depends on three factors: the size of your initial corpus, the monthly withdrawal amount, and the returns earned on the remaining corpus. A higher return rate or lower withdrawal amount will make your corpus last longer. If you also factor in annual escalation of withdrawals (for inflation), the corpus depletes faster. Use this calculator to find the exact duration for your scenario.

SWP from equity or balanced mutual funds has the potential to generate higher post-tax returns compared to FD interest. SWP withdrawals from equity funds held for more than one year are taxed as long-term capital gains (at a lower rate), while FD interest is taxed at your income tax slab rate. However, SWP carries market risk whereas FD returns are guaranteed. The right choice depends on your risk tolerance and income needs.

Inflation erodes the purchasing power of money over time. A withdrawal of ₹30,000 per month today will not buy the same goods and services 10 years from now. By factoring in an annual increase (typically 5-7% to match inflation), you get a realistic picture of how long your corpus will actually sustain your lifestyle. Without this adjustment, the calculator may overestimate the duration.

When the remaining corpus becomes zero, no further withdrawals are possible. In the final month, you may receive a partial withdrawal (less than the full monthly amount) equal to whatever balance was left. This calculator shows the exact year and month when depletion occurs, and the final year is highlighted in red in the breakdown table. Planning for this scenario is essential to avoid running out of money in retirement.