SuperCalc

SWP Calculator

An SWP (Systematic Withdrawal Plan) lets you draw a regular monthly income from your mutual fund corpus while what's left keeps earning returns. Unlike fixed deposits or annuities, you control the amount and timing — and benefit from equity-class returns on the unspent balance. This calculator shows exactly how long your corpus lasts, when inflation forces larger withdrawals, and whether you risk running out before the plan ends.

Wealth planner

Wealth Projection

Project where your money goes — building it up, drawing it down, or both across your full timeline.

₹
₹
% / yr
years
% / yr

Defaults to 6% (your inflation rate). Override to customize real-spending growth.

Inflation (optional)

Grows your withdrawal each year so your real spending power holds steady.

% / yr

0 to ignore

Your ₹50K/mo lifestyle today, projected forward:
Year 5
₹66.9K/mo
Year 10
₹89.5K/mo
Year 20
₹1.6L/mo
Y30 (plan end)
₹2.9L/mo
Your projection
Final balance
—
Withdrawn
—
Returns
—
Multiplier
—

How it works

SWP works in reverse of SIP. Instead of investing a fixed amount monthly, you withdraw one. The corpus continues to earn returns on the remaining balance, so you're not just spending principal — the market is partially refilling the pot every month.

Each year, the calculator credits your corpus with the expected return, then subtracts your monthly withdrawals. With inflation > 0, your withdrawal amount grows annually so your real spending power holds steady — a ₹50k/mo lifestyle today still feels like ₹50k/mo when prices have doubled.

The 4% rule applies here too: drawing 4% of your starting corpus annually has a high historical chance of surviving 30 years. The calculator shows your withdrawal rate as one of the four insight tiles — under 4–4.5% is the sustainable zone for long horizons.

SWP is far more tax-efficient than fixed deposits or annuities for Indian investors. Equity SWPs are taxed at 12.5% LTCG only on gains above ₹1.25L/year — typically 4–6× lower effective tax rate than FD interest income (which is taxed at your slab rate).

FAQ

What is SWP and how does it work?
SWP stands for Systematic Withdrawal Plan. You park a corpus in a mutual fund (typically a hybrid or balanced fund) and instruct the fund to redeem a fixed amount every month and credit it to your bank account. The remaining corpus continues to earn returns. It's the most flexible retirement income tool in India.
SWP vs Fixed Deposit — which is better?
For long-term retirement income, SWP usually wins on three fronts: (1) higher long-term returns from equity exposure (8–11% vs 6–7% FD), (2) better tax efficiency (LTCG 12.5% vs slab-rate FD interest), (3) flexibility to adjust withdrawal up or down. FD wins only on simplicity and capital safety.
SWP vs annuity — which to choose?
Annuities give you a guaranteed income for life but you give up the corpus permanently and face high implicit fees. SWP keeps you in control of the corpus, gives equity-class returns on the balance, and is more tax-efficient. Most fee-only financial planners in India recommend SWP over annuities for retirees who can manage their own portfolio.
How is SWP taxed in India?
Equity mutual fund SWP withdrawals are subject to capital gains tax. Gains held > 1 year (long-term) are taxed at 12.5% above ₹1.25L/year exemption. Each withdrawal is treated as a partial redemption — the unit value at withdrawal vs. the unit cost at purchase determines the gain. A typical retirement-stage SWP loses 4–8% of nominal value to taxes over 30 years.
What's a safe SWP withdrawal rate?
The same 4% rule applies: draw 4% of your corpus annually (in today's money, growing with inflation) and you have a high probability of the money lasting 30+ years. For a ₹1 crore corpus, that's roughly ₹33k/mo. Going to 5–6% sharply raises depletion risk in long retirements.
Can my SWP withdrawal be reduced or stopped?
Yes — most fund houses allow you to adjust the SWP amount or pause it via a simple form (online or offline). This flexibility matters: in market downturns, retirees often pause SWP for 6–12 months to let the corpus recover, then resume.

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