See how long your money lasts if you withdraw a fixed amount every month, and what is left at the end.
What is an SWP?
A Systematic Withdrawal Plan (SWP) pays you a fixed amount from your mutual fund every month by selling a few units. The rest of your money stays invested and keeps earning returns. Retirees use it as a regular income, much like a pension. It works in the opposite direction to a SIP, which puts money in every month.
How this calculator works
Each month, the balance grows at the monthly equivalent of your expected return, and then the withdrawal is taken out. If you set a yearly increase, the withdrawal goes up by that percentage every year to keep pace with inflation. If the money runs out before the period ends, the calculator tells you in which year and month.
How much can I withdraw?
If you withdraw less than the monthly return on your corpus, your capital never shrinks. For example, ₹50 lakh earning 8% a year earns about ₹32,000 a month. Withdraw more than that and you start using up the principal. The note under the results shows both the amount that keeps your capital intact and the largest amount that lasts for your chosen period.
Building the corpus first? Use the retirement calculator to see how much you need.
Frequently asked questions
How is SWP taxed?
Each withdrawal sells some units, and only the gain on those units is taxed, not the whole amount. For equity funds, gains on units held over 12 months are long-term and taxed at 12.5%, with the first ₹1.25 lakh of long-term gains each year tax-free. Units held 12 months or less are taxed at 20%. Gains from debt funds bought after 1 April 2023 are taxed at your slab rate. This often makes an SWP more tax-efficient than FD interest, which is fully taxable.
Which funds are good for an SWP?
Many retirees use balanced advantage, hybrid or conservative hybrid funds, which have smaller ups and downs than pure equity funds. Some keep 2–3 years of withdrawals in a debt or liquid fund and the rest in equity. Pure equity funds can fall sharply in a bad year, and selling units after a fall uses up the corpus faster.
Is SWP better than a fixed deposit for monthly income?
An FD gives guaranteed interest that is fully taxed at your slab rate. An SWP from a mutual fund can earn more and is usually taxed less, but returns are not guaranteed and the balance can fall in a bad market. Use the FD calculator to compare.
What is a safe withdrawal rate?
A common rule of thumb is to withdraw about 4–6% of your corpus a year and raise it with inflation. Withdraw at or below the return you expect and your capital stays intact; withdraw more and you are slowly using up the principal.
Can I change or stop my SWP?
Yes. You can change the amount, pause or stop an SWP at any time through your fund house, broker or app. Some funds charge an exit load (often 1%) on units sold within the first year, so many investors start an SWP only after a year.