SWP Calculator — Plan Your Monthly Income from Mutual Funds
Plan your retirement withdrawals. Enter your corpus, monthly withdrawal amount, and expected returns to see how long your money lasts and the remaining balance each year.
Year-wise Corpus
| Year | Withdrawn | Remaining |
|---|---|---|
| 1 | ₹3,00,000 | ₹51,03,749 |
| 2 | ₹6,00,000 | ₹52,16,110 |
| 3 | ₹9,00,000 | ₹53,37,796 |
| 4 | ₹12,00,000 | ₹54,69,583 |
| 5 | ₹15,00,000 | ₹56,12,307 |
| 6 | ₹18,00,000 | ₹57,66,878 |
| 7 | ₹21,00,000 | ₹59,34,278 |
| 8 | ₹24,00,000 | ₹61,15,572 |
| 9 | ₹27,00,000 | ₹63,11,913 |
| 10 | ₹30,00,000 | ₹65,24,550 |
| 11 | ₹33,00,000 | ₹67,54,837 |
| 12 | ₹36,00,000 | ₹70,04,237 |
| 13 | ₹39,00,000 | ₹72,74,337 |
| 14 | ₹42,00,000 | ₹75,66,855 |
| 15 | ₹45,00,000 | ₹78,83,652 |
Breakdown
What Is a Systematic Withdrawal Plan?
A Systematic Withdrawal Plan (SWP) is a facility offered by mutual fund houses that allows you to withdraw a fixed amount from your corpus at regular intervals — monthly, quarterly, or annually. It is the reverse of SIP: instead of building wealth by investing regularly, you generate a steady income stream by redeeming units regularly.
SWP is particularly powerful for retirement income planning because the remaining corpus continues to earn returns between withdrawals, potentially sustaining your income for decades if structured correctly.
SWP vs Fixed Deposit for Retirement Income
| Factor | SWP (Equity Fund) | Bank FD |
|---|---|---|
| Expected return | 10–14% (variable) | 6.5–7.5% (fixed) |
| Capital protection | Not guaranteed | Guaranteed (up to ₹5L) |
| Inflation beating | Yes (long term) | Marginal |
| Tax efficiency | High (LTCG 10%) | Low (taxed at slab) |
How Much Can You Withdraw Monthly?
Financial planners use the 4% rule as a starting point: withdraw 4% of your corpus per year. For a ₹1 crore corpus, that is ₹4 lakhs per year or ₹33,300 per month. At 12% annual returns, this withdrawal rate typically sustains your corpus for 25–30+ years.
Use the calculator above to model your specific scenario — adjust the withdrawal amount and watch how it affects your corpus depletion timeline. Reducing monthly withdrawal by even ₹5,000 can add years to how long your corpus lasts.
Frequently Asked Questions
What is a Systematic Withdrawal Plan (SWP)?
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund corpus every month. It is the mirror image of SIP — instead of investing regularly, you withdraw regularly. It is widely used for retirement income planning.
Is SWP better than Fixed Deposit for retirement income?
SWP from equity or balanced hybrid funds can provide higher monthly income than FD interest because equity returns historically exceed FD rates. However, SWP from equity funds carries market risk — corpus value fluctuates, unlike guaranteed FD interest.
How is SWP taxed in India?
Each SWP withdrawal is treated as a redemption. The gain component of each unit redeemed is taxed — LTCG at 10% above ₹1.25 lakh/year for equity funds held over 12 months, STCG at 20% if held under 12 months. Debt fund gains are taxed at income slab rate.
What is a sustainable SWP withdrawal rate?
Financial planners generally recommend a withdrawal rate of 3-4% per year of corpus as sustainable over 25-30 years. For a ₹1 crore corpus, a safe monthly withdrawal is ₹25,000 to ₹33,000 per month assuming 10-12% annual returns.
Can I run SWP and SIP from the same fund?
Yes but it is unusual — SWP is typically used after your accumulation phase ends (at retirement). Some investors do a simultaneous SIP in one fund and SWP from another.
What happens if my monthly withdrawal exceeds my returns?
If you withdraw more than the fund earns each month, you are eating into principal. This accelerates corpus depletion. The SWP calculator shows this clearly in the year-by-year balance projection.
Building the corpus for SWP? Use our SIP Calculator to plan your accumulation phase. Read our complete SWP guide for a full retirement income strategy.
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