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Systematic withdrawal plan

SWP Calculator

A systematic withdrawal plan turns a lump sum into a regular monthly income. Enter your corpus, the monthly amount you want and an expected return — see whether the money lasts, what's left at the end, and how much you can withdraw without eating into the principal.

Your withdrawal plan

₹
₹
Balance after 20 years—
Total invested—
Total withdrawn—
Total gain (withdrawn + balance − invested)—
First-year withdrawal rate—
Monthly withdrawal that keeps the corpus intact—
WithdrawnBalance left
See year-by-year schedule
YearOpeningWithdrawnGrowthClosing

How it's calculated

Each month your balance first earns that month's return (the annual rate divided by 12), and then the withdrawal is taken out at month-end. If you set a yearly increase, the monthly withdrawal rises by that percentage every year so your income keeps pace with inflation. If the balance can't cover a withdrawal, the plan stops and the calculator shows how long the money lasted.

Example: withdrawing ₹30,000 a month from ₹50 lakh at 10% for 20 years takes out ₹72,00,000 in total and still leaves about ₹1,38,59,303 — because ₹30,000 is less than the roughly ₹41,667 the corpus earns each month. Raise the withdrawal to ₹50,000 and drop the return to 8%, and the same ₹50 lakh runs out in 13 years and 10 months.

The return is assumed constant. Real markets are uneven, and the order of returns matters: a bad stretch early in the plan hurts an SWP far more than the same stretch later (sequence risk). Treat this as a planning estimate, not a promise. Capital-gains tax on the units you sell is not deducted here.

Frequently asked questions

What is a safe withdrawal rate for an SWP?
Many planners start from roughly 4% of the corpus in the first year, rising with inflation, for a 25–30 year retirement — but with Indian inflation and equity volatility you should test your own numbers. Withdrawing no more than the portfolio's monthly return keeps the corpus from shrinking; the calculator shows that figure for your inputs.
How is an SWP taxed?
Each withdrawal is a sale of units, so only the gain portion is taxed, as capital gains based on the fund type and how long you held the units. The part of each withdrawal that is your original capital isn't taxed. Check current capital-gains rates with a tax professional before relying on post-tax numbers.
SWP or FD interest for monthly income?
An SWP lets you choose the amount and timing, and only the gains are taxed, whereas FD interest is fully taxable at your slab each year. The trade-off is market risk: an SWP corpus can shrink in poor markets, while an FD's interest is fixed. Compare both with the FD calculator and the retirement calculator.
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