A systematic withdrawal plan (SWP) pays you a fixed amount every month from a mutual fund, while the rest stays invested. It's popular for retirement income. This calculator shows how much you'd withdraw and how long the money lasts.
How an SWP is calculated
Each month: balance = balance × (1 + r) − withdrawalr = yearly return ÷ 12 ÷ 100The money lasts as long as the balance stays above zeroIf the monthly withdrawal is less than the monthly return, the balance keeps growing. If it's more, the fund slowly runs down.
Worked example
Example: ₹50 lakh corpus, ₹30,000 a month, 8% return, 20 years
You withdraw ₹72 lakh over 20 years.
About ₹69.6 lakh is still left at the end, because ₹30,000 a month is a withdrawal rate of 7.2% a year, below the 8% return.
If you increase the withdrawal each year for inflation, the fund runs down faster; the calculator lets you set a yearly increase.
Mutual fund returns aren't guaranteed. Results use the rate you enter as if it were earned every year; real returns go up and down.
Why SWP can be tax-efficient
Each withdrawal is part capital and part gain, and only the gain is taxed. In an equity fund held over a year, gains up to ₹1.25 lakh a year are tax-free and the rest is taxed at 12.5%, which is often far less than tax on FD interest at your slab rate.
For retirement planning, also see the FIRE calculator.
How to use this calculator
- Enter the amount invested and your monthly withdrawal.
- Set an expected return and, if you like, a yearly increase in withdrawals.
FAQs
How much can I safely withdraw?
Withdrawing less than your expected return each year means the money can last indefinitely. Raising withdrawals for inflation shortens it.
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.