About the SWP Calculator
A systematic withdrawal plan (SWP) pays you a fixed amount every month from an invested corpus, often used for retirement income. This SWP calculator shows how long the money lasts, how much you withdraw in total and what is left at the end, with an option to raise withdrawals each year for inflation.
How to use this calculator
- Enter the starting corpus.
- Enter the monthly amount you want to withdraw.
- Set the time horizon and the expected annual return on the remaining money.
- Add a yearly increase if you want withdrawals to keep pace with inflation, or leave it at 0 for a flat amount.
- Check the status line: it tells you whether the corpus lasts the full horizon.
Formula
Each month the remaining balance grows at the monthly rate and then the withdrawal is taken out. Once a year the withdrawal rises by the step-up percentage. The calculator keeps going past your horizon to show when, if ever, the corpus runs out.
Example
₹50 lakh invested at an assumed 8%, withdrawing ₹25,000 a month and raising it 3% every year, pays out about ₹1.09 crore over 25 years and still leaves about ₹58.91 lakh. At these assumptions the corpus runs out after about 38 years.
Frequently asked questions
What is a safe withdrawal rate?
There is no single safe number, because it depends on returns, inflation and how long you need the money. A lower withdrawal rate gives the corpus more room. The calculator shows the rate you have chosen.
How are SWP withdrawals taxed?
Each mutual fund withdrawal is treated as a redemption, so the gain portion may be taxed as capital gains. Tax rules change, so check the current rules or ask a tax adviser.
SWP vs dividend option: what is the difference?
An SWP pays a fixed amount you choose on a set date. Dividend (IDCW) payouts are decided by the fund and are not guaranteed.
Why include inflation in withdrawals?
Your expenses rise over time. A flat withdrawal loses buying power each year, so adding a yearly increase gives a more realistic picture.
These results are estimates for illustration and education only, not investment advice.