How to use the SWP calculator
Enter the amount you have invested, how much you want to withdraw every month, the yearly return you expect and for how many years. Add a yearly increase if you want your income to keep up with inflation.
For example, ₹50 lakh earning 8% a year can pay you ₹30,000 a month for 20 years and still be worth about ₹69.6 lakh at the end, because the monthly return (about ₹33,000) is more than what you take out. Withdraw ₹30,000 a month from ₹10 lakh instead, and the money lasts only about 3 years.
How the calculation works
Every month the balance first earns its return, then the withdrawal is paid out:
Balance next month = balance × (1 + r ÷ 12) − withdrawal
r is the yearly return as a decimal. With a yearly increase, the withdrawal goes up once every 12 months. If the balance cannot cover a withdrawal, the calculator pays what is left and shows how long the money lasted.
A safe withdrawal rate
A common rule of thumb is to withdraw no more than 4–5% of your corpus a year at the start of retirement, and raise it with inflation. On ₹1 crore that is about ₹33,000–₹42,000 a month. Withdrawing more than your fund earns eats into the capital, and a few bad market years early on can shorten how long the money lasts.
Tips for a steady SWP
- Start the SWP at least a year after investing, so equity gains qualify as long-term.
- Keep one to two years of withdrawals in a liquid fund as a buffer.
- Choose growth options, not IDCW (dividend) options, for a predictable payout.
- Review the withdrawal amount every year, especially after a market fall.
Frequently asked questions
What is an SWP?
A systematic withdrawal plan pays you a fixed amount from a mutual fund every month or quarter. The units for each payment are sold on the day, and the rest of the money stays invested and keeps earning returns.
How does the SWP calculator work?
Every month the balance earns the expected return (yearly rate ÷ 12) and then your withdrawal is paid out. If you choose a yearly increase, the withdrawal is raised once every 12 months. The calculator stops when the period ends or the money runs out.
How much can I withdraw without running out?
If you withdraw less than the monthly return on your corpus, the money never runs out. At 8% a year, ₹50 lakh earns about ₹33,000 a month, so a ₹30,000 withdrawal leaves you with about ₹69.6 lakh after 20 years.
How is SWP taxed?
Each withdrawal is partly your own money and partly gains, and only the gains are taxed. For equity funds held over 12 months, long-term gains above ₹1.25 lakh a year are taxed at 12.5%; debt fund gains are taxed at your slab rate.
Which funds are good for an SWP?
Many retirees use balanced advantage, hybrid or conservative debt funds, which move less than pure equity funds. Keep one to two years of withdrawals in a liquid fund so you never have to sell in a market fall.
Last reviewed: 13-10-2026. Rates and rules are checked against official sources; tell us if something has changed. Contact