worldofcalcsSWP Calculator
Plan a monthly income from a mutual fund corpus: see how much is left, or when the money runs out.
Year-by-year balance
| Year | Withdrawn | Balance at year end |
|---|---|---|
| 1 | ₹3,60,000 | ₹50,26,983 |
| 2 | ₹3,60,000 | ₹50,56,125 |
| 3 | ₹3,60,000 | ₹50,87,599 |
| 4 | ₹3,60,000 | ₹51,21,590 |
| 5 | ₹3,60,000 | ₹51,58,301 |
| 6 | ₹3,60,000 | ₹51,97,948 |
| 7 | ₹3,60,000 | ₹52,40,768 |
| 8 | ₹3,60,000 | ₹52,87,012 |
| 9 | ₹3,60,000 | ₹53,36,957 |
| 10 | ₹3,60,000 | ₹53,90,897 |
| 11 | ₹3,60,000 | ₹54,49,152 |
| 12 | ₹3,60,000 | ₹55,12,068 |
| 13 | ₹3,60,000 | ₹55,80,016 |
| 14 | ₹3,60,000 | ₹56,53,401 |
| 15 | ₹3,60,000 | ₹57,32,657 |
| 16 | ₹3,60,000 | ₹58,18,252 |
| 17 | ₹3,60,000 | ₹59,10,696 |
| 18 | ₹3,60,000 | ₹60,10,535 |
| 19 | ₹3,60,000 | ₹61,18,361 |
| 20 | ₹3,60,000 | ₹62,34,814 |
Assumes a steady return, compounded monthly, with each withdrawal at the end of the month. Real returns vary year to year, and withdrawals may be taxed as capital gains.
What is an SWP?
A systematic withdrawal plan (SWP) lets you take a fixed amount out of a mutual fund every month, while the rest stays invested. It is the opposite of a SIP and a common way for retirees to turn savings into a regular income. If the fund earns more than you withdraw, your capital keeps growing; if you withdraw more, it slowly runs down. This calculator shows which of the two happens to your money, and when.
How the plan is calculated
The yearly return is turned into the equivalent monthly rate. Each month the balance grows at that rate and then the withdrawal is taken out. If you choose a yearly increase, the withdrawal rises once a year. The level withdrawal that uses up the corpus in exactly n months is P × r ÷ (1 − (1 + r)^−n).
Tips for planning an SWP
- Each withdrawal is treated as a sale of units, and only the gain part is taxed. Equity fund gains are taxed at 12.5% above ₹1.25 lakh a year if held over 12 months, and at 20% if held less.
- Gains on debt funds bought on or after 1 April 2023 are taxed at your income tax slab rate, however long you hold them.
- Start withdrawals after the fund's exit-load period (often one year for equity funds) to avoid exit charges.
- A bad market year early on hurts most, because you sell more units at low prices. Many retirees keep 2–3 years of withdrawals in a debt or liquid fund.
- Plan for inflation: a withdrawal that feels comfortable today buys much less in 15 years. Use the yearly increase to test that.
- Compared with FD interest, which is fully taxed at your slab rate, an SWP is usually more tax-efficient because only the gain in each withdrawal is taxed.
Worked example: ₹50 lakh at 8%
- Corpus of ₹50,00,000 earning 8% a year (about 0.64% a month)
- Withdrawing ₹30,000 a month for 20 years takes out ₹72,00,000 in total
- Because the fund earns more than you take out at first, ₹62,34,814 is still left after 20 years
- The level withdrawal that uses up the whole corpus in 20 years is ₹40,958 a month
- If the ₹30,000 rises 6% every year to keep up with inflation, the money runs out after 16 years 9 months
How long ₹50 lakh lasts
Years until the money runs out for different monthly withdrawals and returns, with no yearly increase.
| Monthly withdrawal | 6% return | 8% return | 10% return |
|---|---|---|---|
| ₹25,000 | Lasts 50+ years | Lasts 50+ years | Lasts 50+ years |
| ₹30,000 | 28.7 years | Lasts 50+ years | Lasts 50+ years |
| ₹40,000 | 16.2 years | 21.3 years | Lasts 50+ years |
| ₹50,000 | 11.5 years | 13.4 years | 16.8 years |
"Lasts 50+ years" means the returns cover the withdrawals and the capital doesn't run down.