SWP Calculator
Plan your Systematic Withdrawal Plan. Know how long your investment will last with regular monthly withdrawals.
Plan Your Withdrawals
Withdrawal vs Remaining
Balance Over Time
How the SWP Calculator Works
What Is SWP and Why It Matters
A Systematic Withdrawal Plan (SWP) is the mirror image of a SIP — instead of investing a fixed amount every month, you withdraw a fixed amount every month from an invested corpus. The remaining balance continues to earn returns, potentially offsetting or exceeding the withdrawals.
SWP is the primary mechanism for generating regular income from accumulated wealth. Retirees use SWP to convert their retirement corpus into a monthly pension. Investors who've built wealth through SIPs use SWP to extract income without selling the entire portfolio at once.
The critical calculation: does the portfolio's return exceed the withdrawal rate? If you withdraw ₹30,000/month from a ₹50 lakh portfolio (7.2% annual withdrawal), and the portfolio earns 8%, the balance stays roughly flat. If it earns only 6%, the portfolio slowly depletes. If you withdraw too aggressively, it depletes quickly.
The Withdrawal Rate Math
The annual withdrawal rate is the key metric: Annual Withdrawal ÷ Portfolio Value. Withdrawing ₹30,000/month = ₹3.6 lakh/year. On a ₹50 lakh portfolio, that's a 7.2% withdrawal rate — aggressive. On a ₹1 crore portfolio, it's 3.6% — safe.
The 4% rule says you can withdraw 4% of your portfolio annually without running out of money for 30+ years, assuming a diversified portfolio with historical returns. In India, with higher inflation, 3.5% is a safer target. If you withdraw more than 5%, the portfolio is likely to be depleted within 20–30 years.
This is why the size of your corpus matters enormously. For the same ₹30,000/month withdrawal, you need ₹90 lakh at 4% but only ₹50 lakh at 7.2% — but the ₹50 lakh portfolio won't last. The math is unforgiving.
How Returns Compound on the Remaining Balance
The reason SWP can sustain long-term withdrawals is that the untouched portion keeps growing. In month 1, your entire ₹50 lakh earns interest. In month 60, your reduced ₹35 lakh (after 5 years of withdrawals) still earns the same rate of return on the remaining amount.
The balance over time follows a smooth decay curve — slowly at first, then steeper as the portfolio shrinks. The classic 'retirement withdrawal' chart shows the portfolio lasting 30+ years if the withdrawal rate is under 4–4.5%. Higher withdrawal rates produce a much steeper decay.
This calculator shows the balance trend year by year. If the balance stays roughly flat over 20 years, you've found your sustainable withdrawal rate. If it declines toward zero by year 10–15, you're withdrawing too aggressively and need a larger corpus or lower monthly withdrawal.
Step-by-Step Worked Example
Let's walk through a realistic retirement income scenario: You have ₹50 lakh invested and want to withdraw ₹30,000/month for 20 years. Assume 8% annual returns on the remaining balance.
- 1Convert annual return to monthly rate: 8 ÷ 12 ÷ 100 = 0.00667 (0.667% per month).
- 2Year 1: ₹50,00,000 × (1.00667)^12 − (₹30,000 × 12) = ₹53,99,900 − ₹3,60,000 = ₹50,39,900.
- 3After 5 years: ₹54,30,000 approx (fluctuates with withdrawals).
- 4After 10 years: ₹50,10,000 approx.
- 5After 15 years: ₹38,50,000 approx.
- 6After 20 years: ₹15,80,000 approx.
Result
Total withdrawn over 20 years: ₹72,00,000
Remaining balance after 20 years: ₹15,80,000
Total value extracted: ₹87,80,000 (from ₹50 lakh invested)
Effective return: 8% (matches the withdrawal rate assumption)
Verdict: ₹50 lakh corpus with ₹30,000/month withdrawal at 8% returns lasts 25+ years
Key Benefits & Use Cases
When to Use This Tool
- ✓Generating retirement income from an accumulated corpus without annuitizing (no lock-in with insurance companies).
- ✓Creating a regular monthly income from a lump-sum windfall — inheritance, property sale, bonus.
- ✓Funding a sabbatical or career break while living off existing investments.
- ✓Supplementing other retirement income (pension, rental income, Social Security) with systematic withdrawals.
- ✓Testing whether a target corpus can sustain a specific lifestyle in retirement — the 'can I retire yet?' calculation.
Why It Matters
- →Regular monthly income without the complexity of managing investments actively.
- →Remaining balance continues to earn returns, extending portfolio longevity.
- →Full flexibility — you can pause, increase, or decrease withdrawals any time.
- →More tax-efficient than lump-sum selling because withdrawals are spread over time.
- →Eliminates timing risk — you're not selling everything at one market level.
Who Should Use This Calculator
- ★Retirees converting accumulated savings into monthly income for living expenses.
- ★Anyone who received a large lump sum (property sale, inheritance) and wants regular payouts.
- ★Self-employed individuals with irregular income who need a systematic base.
- ★Investors evaluating whether their corpus can sustain a target retirement lifestyle.
Balance Tracking
See how your investment balance changes over time with withdrawals.
Withdrawal Planning
Plan exact monthly income from your investments.
Returns on Remaining
Your remaining balance continues to earn returns while you withdraw.
How to Use
Enter Investment
Set your total invested amount.
Set Withdrawal
Choose monthly withdrawal amount.
Set Return Rate
Expected return on remaining balance.
See Plan
View how long your money will last.
The Formula
Balance = (Prev Balance × (1 + r)) - WFrequently Asked Questions
What is SWP?
SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount regularly from your mutual fund investment while the remaining balance continues to earn returns. It's the reverse of a SIP — instead of investing monthly, you're withdrawing monthly.
Is SWP good for retirement?
Yes — SWP is one of the best ways to generate regular income during retirement while keeping your principal invested. It's more tax-efficient than lump-sum selling and provides predictable monthly income similar to a pension, but without the lock-in of annuities.
What is a safe withdrawal rate?
The 4% rule is the standard — withdraw 4% of your portfolio annually and it should last 30+ years. In India, with higher inflation (6–7% vs 3% in the US), many planners use 3.5%. This calculator lets you test different withdrawal rates against your portfolio size and timeline.
Does SWP affect my returns?
SWP reduces the corpus on which future returns are earned, so total returns are lower than if you hadn't withdrawn. But the withdrawal rate matters more than the return rate. If your portfolio earns 8% and you withdraw 4%, you're net positive. If you withdraw 10% and earn 8%, the portfolio depletes.
How long will my corpus last with SWP?
Depends on three factors: portfolio size, withdrawal rate, and returns. A ₹1 crore portfolio with ₹30,000/month withdrawal (3.6% rate) at 8% returns lasts essentially forever. A ₹1 crore portfolio with ₹1 lakh/month withdrawal (12% rate) depletes in about 8 years.
Can I change my SWP amount?
Yes — most mutual funds allow you to modify, pause, or stop SWP anytime. You can increase the amount if your expenses rise, decrease it if you want to preserve the corpus longer, or pause temporarily for a large one-time expense.
Is SWP taxable?
Yes, the capital gains from each withdrawal are taxed. If you hold the fund over 1 year, gains above ₹1.25 lakh/year are taxed at 12.5% (LTCG). SWP spreads these redemptions over many years, keeping you in lower tax brackets compared to a lump-sum withdrawal.
SWP vs annuity — which is better?
SWP is more flexible and often more tax-efficient, but doesn't guarantee lifetime income. Annuities (from insurance companies) guarantee lifetime income but lock your capital and typically pay lower returns. For most retirees, SWP from a diversified portfolio is preferable, with an annuity as a small supplement if desired.
Reviewed by AutoWealthLab Editorial Team
This calculator and its accompanying guide are maintained by the AutoWealthLab editorial team. Every formula is verified against standard financial references, and results are cross-checked with independent calculators before publishing. Our tools are updated whenever tax rules, interest rate benchmarks, or regulatory formulas change.
Last reviewed: October 2026 · Methodology: Standard amortization and compound interest models · Learn more about our testing process