SWP Calculator

What Is an SWP?

A systematic withdrawal plan (SWP) takes a fixed amount out of a mutual fund every month, while the rest stays invested. It is a common way to create a monthly income in retirement. This calculator shows how much you withdraw in total, what is left at the end, and whether the money runs out.

How to Use It

1. Enter the amount invested and the monthly withdrawal.
2. Enter the expected yearly return and the number of years.
3. Optionally raise the withdrawal each year to keep up with inflation.

Example

From an investment of ₹30 lakh, withdrawing ₹25,000 a month for 15 years at an expected 8% return takes out ₹45,00,000 in total and still leaves about ₹12,12,136 at the end. Because the withdrawals (₹3 lakh a year) are close to what the fund earns, the balance falls slowly. Raise the withdrawal by 5% a year and the money runs out much sooner - try it.

A Safe Withdrawal Rate

A withdrawal that is lower than the expected return protects your capital. If you withdraw more than the fund earns, you start eating into the principal, and a few bad market years can shorten how long the money lasts. Many planners suggest starting with withdrawals of around 4% to 5% of the corpus a year.

Tax on SWP

Each withdrawal is treated as a sale of units, so only the gain part of it is taxed as capital gains - not the whole amount. This often makes an SWP more tax-efficient than interest income, which is fully taxable at your slab rate.

Limitations

The calculator assumes a steady return; real markets go up and down, and a fall early in retirement does more damage than one later. Exit loads and tax are not included. To build the corpus first, use the SIP Calculator; to work out how much you need, use the Retirement Calculator.