SWP Calculator
Calculate how long your investment corpus will last with monthly withdrawals. Plan your retirement income with Systematic Withdrawal Plan projections.
How to use
- Enter your total invested corpus.
- Enter your desired monthly withdrawal amount.
- Enter expected annual return rate.
- Choose mode: duration or fixed period.
- Click Calculate.
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An SWP (Systematic Withdrawal Plan) is the reverse of a SIP — instead of investing regularly, you withdraw a fixed amount from your invested corpus every month. The remaining balance stays invested and continues to earn returns. This makes SWP a popular strategy for retirees who need a regular income without selling their entire investment.
The key insight is the withdrawal rate vs return rate balance. If your monthly return exceeds your withdrawal, the corpus actually grows over time. If withdrawal exceeds returns, the corpus depletes gradually. A commonly cited rule is the 4% annual withdrawal rate (roughly 0.33% per month), which historically allows a corpus to last 25–30 years in balanced funds.
Frequently Asked Questions
What is a safe SWP withdrawal rate?
Financial planners generally recommend withdrawing no more than 4% of your corpus annually (the '4% rule'). This means on a ₹1 crore corpus, a monthly withdrawal of ₹33,000 is considered sustainable over 25+ years, assuming 8–10% annual returns.
Is SWP better than an FD for retirement income?
SWP from equity or balanced funds typically offers better post-tax returns than FD interest for long tenures. FD interest is fully taxable as income, while equity fund LTCG above ₹1 lakh is taxed at 12.5%. SWP also benefits from market growth over time.
What happens when the corpus is exhausted?
Once the corpus hits zero, withdrawals stop. To avoid this, either reduce the monthly withdrawal amount, choose investments with higher expected returns, or start with a larger corpus.
Can I set up SWP in any mutual fund?
Most mutual fund houses allow SWP from any fund except ELSS (which has a 3-year lock-in). Liquid funds and balanced advantage funds are popular choices for SWP due to their stability.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.