SWP Calculator (Systematic Withdrawal Plan)
How long your corpus lasts with a fixed or rising monthly withdrawal.
Balance and withdrawals over time
Year by year
Show every month
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the SWP Calculator (Systematic Withdrawal Plan)
A systematic withdrawal plan (SWP) pays you a set amount every month from money you have invested — typically in a mutual fund — while the rest stays invested and keeps growing. This calculator shows, month by month, what is left after each withdrawal, how long the money lasts, the largest monthly withdrawal your corpus can support for the period you choose, and the withdrawal that leaves the corpus untouched.
You can raise the withdrawal every year (for example with inflation) and see the gain inside each withdrawal — the only part that is taxed, because every SWP payout is a sale of units. Everything is calculated in your browser.
How to use it
- Enter the amount you invest at the start and the monthly withdrawal you want.
- Set the expected return per year and the number of years you want the withdrawals to run.
- Optionally raise the withdrawal every year by a percentage — your expected inflation keeps its buying power steady.
- Read what is left at the end, how long the money lasts and the largest withdrawal that lasts the whole period. The chart, the year-wise table and Show every month give the details; Download monthly CSV saves the schedule.
Examples
₹62,34,814 left after ₹72,00,000 withdrawn · up to ₹40,958 a month would last exactly 20 years · ₹32,170 a month keeps the corpus intact
The money runs out after 4 years 10 months (the 58th withdrawal is partial)
Largest fixed withdrawal ₹75,342 a month · or start at ₹43,088 and raise it 6% every year
Common uses
- Turning a retirement corpus into a monthly income and checking that it lasts long enough.
- Deciding how much to withdraw so that the money outlives a particular period.
- Seeing how a yearly increase for inflation shortens how long the money lasts.
- Estimating how much of each payout is a taxable gain.
How the balance is worked out
The corpus is invested at the start. Each month it grows at the monthly rate and then the withdrawal is taken: balance = previous balance × (1 + i) − withdrawal. The monthly rate is i = (1 + r)^(1/12) − 1, where r is the expected return per year, so twelve months of growth add up to exactly r (choose Nominal: r ÷ 12 to match calculators that divide by 12).
The largest withdrawal that lasts exactly n months is the one whose present value equals the corpus: W = corpus × i ÷ (1 − (1 + i)^−n) for a fixed withdrawal, and the same sum with each withdrawal raised every 12 months when you add a yearly increase. Withdrawing only corpus × i a month leaves the corpus as it is.
Tax on SWP withdrawals
Each withdrawal is paid by selling units, so it is a capital-gains event — but only the gain inside it is taxed; the rest is your own money coming back. Early in a plan most of each payout is principal. The calculator assumes all units were bought on day one and grow at a steady rate; a withdrawal in month m then contains a gain of W × (1 − 1 ÷ (1 + i)^m). For units in a demat account, the Income-tax Act matches sales first-in, first-out (section 67(7); section 45(2A) of the 1961 Act).
Equity-fund units held 12 months or less: 20%; longer: 12.5% on gains above ₹1.25 lakh a year (sections 196 and 198). Debt-fund units bought on or after 1 April 2023: your slab rate (section 76). Work out a particular redemption with the capital gains calculator.
Steady returns versus real markets
The projection uses the same return every month. With withdrawals, the order of returns matters: a fall in the early years, while the balance is largest, does more damage than the same fall later, because units are sold low to pay you. In Bengen’s 1994 study of US data, a first-year withdrawal of 5% (raised with inflation) left some retirees starting in the late 1960s and early 1970s with only about 20 years of money, while 4% lasted at least 33 years in every period he tested — see the FIRE calculator for the 4% rule. Leave a margin, and review the plan every year.
Limitations
- Assumes a constant return, a single lump sum invested at the start and withdrawals at the end of each month.
- Does not deduct tax, exit loads or fund costs from the payouts; use a return that is already net of the expense ratio.
- The gain shown inside each withdrawal assumes one purchase on day one. With several purchases, your fund’s capital-gains statement matches each sale to the oldest units first.
- Past returns do not guarantee future returns.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
Is SWP income taxable?
Only the gain part of each withdrawal, as a capital gain. The calculator shows that part year by year. Early withdrawals are mostly your own money back, so they carry little tax.
How much can I withdraw every month from ₹1 crore?
At 8% a year, about ₹75,342 a month would last 25 years with a fixed withdrawal, and ₹64,340 a month would leave the ₹1 crore intact. If you raise the withdrawal 6% every year, you can start at about ₹43,088 for 25 years. A lower return means less.
What is the difference between SWP and SIP?
A SIP invests a fixed amount every month; an SWP withdraws a fixed amount every month from money already invested. People often use a SIP while working and an SWP in retirement.
Should the withdrawal rise with inflation?
If the payout is your living money, yes — a fixed ₹30,000 buys less every year. Raising it by your expected inflation keeps its value, but the corpus then runs out sooner, which the calculator shows.
What return should I assume?
There is no guaranteed figure. Use a cautious long-term return for the kind of fund you hold, after its costs, and try a lower rate to see how sensitive the plan is.