Final Value
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SWP Calculator
The SWP Calculator shows how your invested corpus holds up against regular monthly withdrawals — enter your total investment, monthly withdrawal, expected annual return, and time period to see your final value, total withdrawn, and whether the corpus grows or depletes over your horizon. The donut chart splits your initial investment between what you withdraw and what remains, and the year-wise table tracks your remaining corpus and annual withdrawals at every checkpoint so you can see exactly when, and if, your systematic withdrawal plan corpus runs out. For more related tools, see the lumpsum calculator.
Results
Total Withdrawn
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Total Investment
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Withdrawal Breakdown
Results Table
| Year | Remaining Corpus | Withdrawn (Year) | Total Withdrawn |
|---|
What is a Systematic Withdrawal Plan (SWP)?
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund investment at regular intervals — typically monthly. Instead of redeeming your entire corpus at once, SWP keeps the remaining units invested and earning returns while you draw steady income. The SWP calculator models this drawdown: starting from your total investment, it applies the expected annual return each month and subtracts your monthly withdrawal, projecting the remaining corpus and cumulative withdrawals at every annual checkpoint. The critical question SWP answers is whether your monthly return outpaces your monthly withdrawal — if it does, your corpus grows despite the drawdown; if it doesn't, the corpus depletes, and the year-wise table shows you exactly how fast. Also explore the gold etf sip calculator for a related calculation.
How to Use the SWP Calculator
The systematic withdrawal plan calculator needs four inputs to run:
- Total Investment (₹): The lump-sum corpus you are starting with — the amount already invested, or the amount you plan to invest before activating withdrawals. Range: ₹10,000 to ₹1 crore.
- Monthly Withdrawal (₹): The fixed amount you want to withdraw each month from your mutual fund. Keep this below your expected monthly return to preserve the corpus.
- Expected Annual Return (%): The CAGR you expect the remaining corpus to earn. Equity funds have historically delivered 10–14%; debt funds 6–8%; balanced funds 8–11%.
- Time Period (Years): How many years you plan to run the SWP — from 1 to 40 years.
Move any slider and the final value, total withdrawn, and total investment all update live. The donut chart splits the outcome between what you withdraw and what remains, and the year-wise table shows your remaining corpus, annual withdrawn amount, and cumulative total at every year — making it visible at which point, if any, the corpus reaches zero. Also explore the gold sip calculator for a related calculation.
SWP vs SIP — Key Differences
| Factor | SIP (Systematic Investment Plan) | SWP (Systematic Withdrawal Plan) |
|---|---|---|
| Cash flow direction | You invest money into the fund | You withdraw money from the fund |
| Lifecycle phase | Wealth accumulation | Wealth distribution / retirement income |
| Corpus movement | Grows with each instalment + returns | Depletes with each withdrawal, partially offset by returns |
| Tax treatment | Gains taxed on redemption (LTCG/STCG) | Each withdrawal is a partial redemption — LTCG/STCG per lot |
| Typical use case | Salaried investor building a corpus | Retiree or investor drawing monthly income from a corpus |
If you want to model both phases — building the corpus via SIP and then drawing it down via SWP — use the SIP and SWP Calculator which combines both in a single view.
What Is the 4% Rule in SWP?
The 4% rule states that withdrawing 4% of your corpus annually — or roughly 0.33% monthly — gives a high probability of the corpus lasting 25–30 years. For a ₹1 crore corpus, 4% annually is ₹4,00,000/year or ₹33,333/month. At 8% annual return on the remaining corpus, a ₹33,333/month withdrawal from ₹1 crore depletes to approximately ₹47 lakh after 30 years — the corpus survives the full period. At 10% return, the corpus actually grows over 30 years. Increase the monthly withdrawal to ₹60,000 (7.2% annually) and the corpus depletes in roughly 20 years at 8% return. Enter your corpus and monthly withdrawal in the SWP calculator above to see the exact depletion timeline for your own numbers.
Is SWP 100% Safe?
SWP corpus survival depends entirely on the relationship between the withdrawal rate and the return rate. At 8% annual return on a ₹50 lakh corpus: a ₹25,000/month withdrawal (6% annually) depletes the corpus in approximately 27 years; a ₹20,000/month withdrawal (4.8% annually) sustains the corpus beyond 40 years; a ₹33,000/month withdrawal (7.9% annually) depletes in about 13 years. If the annual withdrawal rate exceeds the annual return rate, depletion is mathematically certain regardless of corpus size. The SWP calculator year-wise table shows the remaining corpus at every annual checkpoint — enter your corpus, withdrawal amount, and return assumption to see whether your corpus survives your target withdrawal period or at which year it reaches zero.
How to Calculate SWP Returns — Formula
The SWP remaining corpus after each month is calculated as: Balance = Previous Balance × (1 + r) − W, where r is the monthly return rate (annual return ÷ 12 ÷ 100) and W is the fixed monthly withdrawal amount. For a ₹50 lakh corpus at 10% annual return (r = 0.00833) withdrawing ₹30,000/month: Month 1 balance = ₹50,00,000 × 1.00833 − ₹30,000 = ₹50,11,650. This calculation repeats each month for the full tenure. The total amount withdrawn is W × number of months the corpus remains positive. The SWP calculator applies this formula iteratively across all months and summarises the result in the year-wise table — no manual month-by-month calculation needed.
Frequently Asked Questions
What is a safe monthly SWP withdrawal rate?
A widely used guideline is withdrawing no more than 4% of your corpus per year (the '4% rule'), which translates to about 0.33% per month. At this rate, a well-diversified equity portfolio has historically sustained withdrawals for 30+ years without depleting. For a ₹50 lakh corpus, 4% annual withdrawal gives ₹16,667/month. Higher withdrawal rates are viable for shorter periods or when the corpus earns significantly above the withdrawal rate. Use this SWP calculator to test your specific numbers across different return and withdrawal combinations.
Does the corpus increase or decrease in an SWP?
It depends on whether the monthly return earned exceeds the monthly withdrawal. If your ₹50 lakh corpus earns ₹8,000 per month in returns and you withdraw ₹5,000, the corpus grows by ₹3,000 each month. If you withdraw ₹10,000 on the same ₹8,000 monthly return, the corpus shrinks by ₹2,000 per month. The year-wise table in this systematic withdrawal plan calculator shows your remaining corpus at every annual checkpoint so you can see both the direction and the pace of change over your full horizon.
Is SWP income taxable in India?
Yes. Each SWP withdrawal is treated as a partial redemption of mutual fund units. For equity funds, gains on units held for more than 1 year are taxed as Long Term Capital Gains (LTCG) at 12.5% above ₹1.25 lakh per year. Gains on units held under 1 year are taxed as Short Term Capital Gains (STCG) at 20%. For debt funds, all gains are added to your income and taxed at your applicable slab rate regardless of holding period. This SWP calculator does not deduct tax from the final value — use the SIP Calculator Tax Adjusted to estimate post-LTCG corpus.
What happens when the SWP corpus runs out?
Once the corpus reaches zero, there are no more units to redeem and the fund house will not process further withdrawal instructions. To avoid premature depletion, you can reduce the monthly withdrawal amount, invest in a higher-return asset class, or start with a larger initial corpus. The year-wise breakdown in this SWP return calculator shows exactly which year the corpus depletes to zero if your withdrawal rate exceeds your net monthly return, giving you time to adjust before it happens.