SWP Calculator
The mirror of a SIP: withdraw a fixed amount every month and see how long the corpus lasts — total taken out, growth earned, and what remains, year by year.
Withdrawals meet compounding.
Keep the corpus and withdrawal fixed and slide the time period. Watch the balance line: if it stays flat or rises, your withdrawal is living off growth — not eating your capital. That is the healthy zone.
- Fixed ₹ — the same amount every month, like a pension.
- Rises 5% a year — the withdrawal grows with inflation.
Illustration only. Assumes a constant return — real returns vary, and withdrawing during a market fall makes a corpus last less long.
| Year | Withdrawn | Growth | Balance |
|---|
The formula behind the numbers
W = monthly withdrawal · r = annual return — the withdrawal is taken first, then the remainder grows.
Example: ₹10 lakh at 8% a year, withdrawing ₹5,000 a month for 20 years. You collect ₹12 lakh of withdrawals and still hold about ₹19.6 lakh — the growth did the heavy lifting.
Withdraw less than the monthly growth and the corpus never runs out — ₹10 lakh at 8% supports about ₹6,600 a month indefinitely.
For building wealth instead of drawing it, the mirror tool is the SIP calculator. To compare the two fairly over time, read What is CAGR?
Frequently asked questions
What is an SWP?
A Systematic Withdrawal Plan is the mirror of a SIP. Instead of investing a fixed amount every month, you withdraw a fixed amount every month from a mutual fund you already hold — commonly used to turn a corpus into a steady income in retirement.
What is a safe monthly withdrawal?
A common rough guide is 4% of the corpus a year — about ₹3,300 a month per ₹10 lakh. The real test is whether the withdrawal is below the fund's expected return: below it, the corpus can last indefinitely. Returns are never guaranteed, so most retirees keep a buffer.
How is an SWP taxed?
Each monthly redemption sells some units, so only the gains portion of that redemption is capital gains — taxed by holding period. Unlike a fixed deposit, the part of the withdrawal that is simply your own money coming back is not income.
Can I stop or change my SWP?
Yes. In open-ended mutual funds an SWP is an instruction, not a contract — you can pause, change the amount, or stop entirely at any time without penalty.
SWP or FD interest — which is better?
They solve the same need differently. FD interest is taxed in full every year as income; an SWP returns part of your own capital tax-free each month, with only the gains taxed. For someone in a higher slab, an SWP from a conservative fund is often more tax-efficient — but it carries market risk a fixed deposit does not.
Have a finance question? Ask IFI.
Stuck on a fund, a policy, or a market headline you don't understand? Message on WhatsApp or call directly — questions on any topic covered on this site are answered free.