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SWP Calculator
A SWP calculator shows how long an invested lump sum can pay you a fixed amount every month. Enter your corpus, the monthly withdrawal you want, and the return you expect, and see the balance left, the total you will withdraw and the earnings — year by year.
| Final balance | |
| Total withdrawn | |
| Total earnings (growth) | |
| Monthly growth rate used |
Year-by-year breakdown
| Year | Withdrawn in year | Balance at year end |
|---|
Balance over time
Your remaining balance at the end of each year, after withdrawals.
How to use this SWP calculator
- Enter the lump sum you have already invested — your starting corpus.
- Enter how much you want to take out every month.
- Enter the return you expect the investment to earn each year. This is only an estimate.
- Enter how many years you want the withdrawals to run.
- Read the result: the balance left at the end, the total you withdrew, and the year-by-year table. If the money runs out early, the calculator tells you exactly when.
How a SWP works
A Systematic Withdrawal Plan (SWP) is the reverse of a SIP. Instead of putting money in every month, you take a fixed amount out every month from money that is already invested — usually in a mutual fund. The part that stays invested keeps growing. Retirees often use a SWP as a monthly pension from their retirement corpus, and parents use it to fund regular expenses from a lump sum.
Every month, two things happen in this calculator. First, the balance grows by one month of return. Second, your withdrawal comes out. The monthly growth rate is taken from the annual return in a way that keeps the maths honest:
So at a 10% annual return, the monthly rate is about 0.797%, not simply 10 ÷ 12. Whether the plan survives depends on one simple contest: if your monthly withdrawal is smaller than the monthly growth, the balance can last indefinitely in theory. If the withdrawal is larger, the balance shrinks — slowly at first, faster later — and the table shows the year it reaches zero.
Worked example
Suppose you have a corpus of ₹10,00,000, you withdraw ₹10,000 a month, and the investment earns 10% a year for 10 years. The monthly rate is (1.10)1/12 − 1 ≈ 0.7974%. Month after month the balance grows a little and then pays out ₹10,000. After 120 months:
- Total withdrawn: ₹12,00,000 (₹10,000 × 120 months)
- Final balance still invested: ₹5,95,104
- Total earnings: ₹12,00,000 + ₹5,95,104 − ₹10,00,000 = ₹7,95,104
So you took out more than you started with — and still had money left. That is possible only because the corpus kept earning while you withdrew. Enter the same numbers above and the calculator shows the same result. Now try a withdrawal of ₹25,000 a month: the corpus runs out in the fifth year, which shows how quickly a large withdrawal can empty the fund.
Things to keep in mind
- The return is assumed to be steady. Real markets rise and fall. A few bad years early in the plan hurt much more than bad years later, because the balance is biggest at the start.
- Tax applies on withdrawals. Each SWP withdrawal from a mutual fund is part capital, part gains. Equity fund gains held over 12 months are taxed at 12.5% above ₹1.25 lakh a year; shorter holdings at 20%. Debt fund gains are taxed at your slab rate.
- Keep a safety margin. A common approach is to withdraw less than the expected growth in the early years, or keep one to two years of withdrawals in a liquid fund or savings account so you are not forced to sell after a market fall.
- Review every year. Inflation raises your expenses, and returns change. Recheck the plan annually and adjust the withdrawal if the balance is falling faster than expected.
Frequently asked questions
What is a SWP in a mutual fund?
A SWP (Systematic Withdrawal Plan) lets you withdraw a fixed amount from a mutual fund investment at regular intervals, usually every month. The money that remains invested keeps earning returns. It is the opposite of a SIP, where you invest a fixed amount every month instead of withdrawing it.
How long will my money last with a SWP?
It depends on the size of your corpus, the monthly withdrawal and the return the investment earns. If the monthly growth is larger than your withdrawal, the balance keeps rising and the money can last indefinitely in theory. If the withdrawal is larger, the balance falls, and this calculator shows the month and year in which it would run out.
What return should I assume in a SWP calculator?
For equity mutual funds, planners often estimate 10–12% a year, and for hybrid or debt funds 6–9%. These are only assumptions for planning — markets do not move in a straight line. It is safer to test your plan at a lower return, such as 8%, and check that the money still lasts.
Is SWP income taxed in India?
Yes. Every withdrawal is treated as a redemption of units, so the gain part is taxed. In equity funds, gains on units held for more than 12 months are long-term capital gains, taxed at 12.5% on gains above ₹1.25 lakh in a financial year. Gains on units held for 12 months or less are taxed at 20%. In debt funds, gains are added to your income and taxed at your slab rate.
Is a SWP better than a monthly dividend option?
For most investors, yes. Dividends are paid from the fund's own gains, are taxed at your slab rate, and the fund house decides the amount and timing. A SWP gives you control over the amount and timing, and only the gain part of each withdrawal is taxed, which is usually more efficient.
Can I stop or change my SWP?
Yes. You can stop a SWP, pause it, or change the withdrawal amount by informing your fund house or platform, usually at no charge. The units that remain stay invested and continue to grow until you redeem them.