SWP Calculator
Plan systematic withdrawals from your mutual fund corpus. See exactly how long your money lasts with real-time charts, inflation-adjusted projections, and multiple strategies.
Configure Your SWP
📖 GuideBalancem = Balancem-1 × (1 + rannual)1/12 − Withdrawal + Deposit/12
Safe Withdrawal Rate (SWR) Analysis
Recommended withdrawal rate for sustainable retirement income
Strategy Comparison
Compare Fixed vs Inflation-Adjusted vs % of Corpus
Stress Test
Corpus survivability under different return & inflation combinations
✅ Survives full period ⚠ 70-99% ❌ Depletes early. Highlighted cell = your current settings.
Market Crash Simulator
Test plan resilience to sudden market downturns at specific years
Monte Carlo Survival Probability
Runs randomized return paths to estimate how often your SWP survives the full period.
Tax Impact: SWP vs FD
SWP from equity fund (LTCG 10%, ₹1.25L/yr exempt) vs FD interest taxed at 30% slab
Year-by-Year Breakdown
Learn the Basics
Understanding SWP & Withdrawal Strategies
A Systematic Withdrawal Plan helps you create regular income from your investments while keeping the remaining corpus invested.
What is SWP?
SWP (Systematic Withdrawal Plan) lets you withdraw a fixed amount from your mutual fund investment at regular intervals — monthly, quarterly, or annually. Your remaining corpus continues to earn returns, making it ideal for retirees seeking regular income.
Tax Efficiency of SWP
Unlike FD interest which is fully taxable, SWP withdrawals from equity funds held over 1 year attract only 10% LTCG tax on gains above ₹1.25 lakh. For debt funds, gains are taxed at your slab rate. This makes SWP more tax-efficient for generating retirement income.
Safe Withdrawal Rate
The "4% Rule" suggests withdrawing 4% of your corpus annually (adjusted for inflation) to make it last 30+ years. In India, with higher inflation, a 3-3.5% rate may be safer. Use strategy comparison above to find what works for your situation.
📚 Comprehensive Guide
SWP Calculator Documentation
Learn everything you need to know about systematic withdrawals, tax planning, and building a sustainable retirement income.
🚀 Getting Started ▼
What is SWP?
A Systematic Withdrawal Plan (SWP) is a method to withdraw a fixed amount from your mutual fund investment at regular intervals—typically monthly, quarterly, or annually. Unlike selling your entire investment, SWP lets your remaining corpus continue to earn returns while you receive regular income. It's especially popular for retirees who need steady cash flow.
When Should You Use SWP?
- Retirement income: Generate steady monthly cash flow from your retirement corpus
- Tax efficiency: Better than FD interest—SWP from equity funds has favorable LTCG tax treatment
- Inflation protection: Increase withdrawals with inflation to maintain purchasing power
- Long-term planning: Plans lasting 20-40+ years where compounding matters
- Flexible income: Adjust withdrawal amounts based on market conditions or personal needs
Key Numbers to Know
- Corpus: Your starting investment amount (e.g., ₹50 lakhs)
- Monthly Withdrawal: How much you take out each month (e.g., ₹20,000)
- Expected Return: Assumed annual investment growth (8-12% typical for balanced funds)
- Inflation Rate: Cost of living increase (5-7% typical in India)
- Time Period: How long you need the corpus to last (e.g., 20 years until age 75)
❓ Frequently Asked Questions ▼
Q: Can I use SWP from an equity mutual fund? What are the tax implications?
Yes! SWP from equity funds held over 1 year attracts LTCG (Long-Term Capital Gains) tax at just 10% on gains, with an annual exemption of ₹1.25 lakh. This is much more tax-efficient than FD interest, which is taxed as income at your slab rate (30% for higher earners). For example, ₹1 lakh gain on equity SWP = ₹10,000 tax (vs ₹30,000 on FD interest).
Q: What return rate should I assume for my SWP?
Conservative estimates suggest: Balanced fund: 9-12% p.a., Aggressive fund: 12-14% p.a., Conservative fund: 7-9% p.a.. Always use conservative assumptions (closer to 8-10%) for retirement planning. Use the Monte Carlo feature to see survival probability across different return scenarios.
Q: What's the "4% Rule" and why is it important?
The 4% rule suggests withdrawing 4% of your corpus in year 1 (inflation-adjusted annually) can sustain a 30-year retirement in most scenarios. In India, with higher inflation, 3-3.5% may be safer. Use this calculator's stress test to verify if your withdrawal rate is sustainable across different market conditions.
Q: How do I know if my withdrawal plan is safe?
Check three things: (1) Survival probability in Monte Carlo (aim for 90%+), (2) Stress test results—ensure corpus lasts even with -4% returns and +2% inflation, (3) Safe Withdrawal Rate metric in results (compare vs market benchmarks).
Q: Should I adjust withdrawals every year for inflation?
Yes! Inflation erodes purchasing power. If inflation is 6%, your ₹30,000 withdrawal has only ₹28,200 real purchasing power in year 2. Enable the "Inflation" option in the strategy to automatically step up withdrawals, or manually increase them 5-7% annually. The calculator shows "Today's ₹X in Year N" to show real value.
Q: Can I add more money to my corpus mid-retirement?
Yes! Use the "Additional Monthly Deposit" field in Advanced Settings to model adding funds periodically. This is useful for modeling rental income, part-time work, or bonus payouts that supplement your SWP withdrawals.
Q: What if the market crashes? Will my corpus deplete faster?
Yes. Check the Stress Test grid—it shows what happens if returns drop -2% to -4%. In a crash, withdrawals deplete your corpus faster because there's less growth to offset them. This is why the Safe Withdrawal Rate matters: a 3-3.5% rate can survive crashes; 5%+ cannot. Use Monte Carlo to see failure scenarios.
💡 Real-World Examples ▼
Scenario 1: ₹1 Crore Retirement at Age 60
- Corpus: ₹1,00,00,000 (₹1 Crore)
- Expected Return: 10% p.a. (balanced fund)
- Inflation: 6% p.a.
- Period: 30 years (until age 90)
- Result: Starting withdrawal ≈ ₹72,000/month, increasing 6% annually
- Tax Benefit: ₹1.25L/year LTCG exemption saves ≈ ₹37,500/year in taxes
✓ Safe: 95%+ survival probability even in down markets
Scenario 2: Early Retirement at 45 with ₹50 Lakhs
- Corpus: ₹50,00,000 (₹50 Lakhs)
- Expected Return: 12% p.a. (aggressive fund)
- Inflation: 6% p.a.
- Period: 35 years (until age 80)
- Result: Starting withdrawal ≈ ₹26,000/month, increasing 6% annually
- Consideration: May need market returns >10% to sustain; use stress test to verify
⚠️ Moderate Risk: Survival drops to 85% in bear markets; consider supplementing income
Scenario 3: Post-Retirement Conservative with ₹2 Crores
- Corpus: ₹2,00,00,000 (₹2 Crores)
- Expected Return: 8% p.a. (conservative allocation)
- Inflation: 5% p.a.
- Period: 25 years (until age 85)
- Result: Starting withdrawal ≈ ₹85,000/month, increasing 5% annually
- Advantage: Higher corpus provides 98%+ survival probability and downside protection
✓ Very Safe: Works across almost all market scenarios
📖 Glossary of Terms ▼
Corpus
Your initial investment amount from which withdrawals are made. Example: ₹50 lakhs.
SWP (Systematic Withdrawal Plan)
A fixed withdrawal amount taken periodically from your mutual fund investment, leaving remaining corpus invested.
LTCG (Long-Term Capital Gains)
Tax on profits from investments held >1 year. Equity: 10% (₹1.25L exempt). Debt: your income slab rate.
SWR (Safe Withdrawal Rate)
Percentage of corpus you can safely withdraw annually. 4% rule suggests 4% p.a. for 30-year survival.
Volatility
Standard deviation of investment returns. Higher volatility = more ups and downs; affects Monte Carlo survival.
Inflation-Adjusted Returns
Real returns after accounting for inflation. If returns are 10% and inflation 6%, real return ≈ 3.8%.
Purchasing Power
What your money can buy. ₹30,000 today can buy less in 10 years due to inflation—shown as "Today's ₹" in results.
Monte Carlo Simulation
Random testing of withdrawal plans across thousands of market scenarios to estimate success probability.
Stress Test
Grid showing how your plan performs with different return/inflation combinations (e.g., -4% returns, +2% inflation).
Depletion Month
The month your corpus runs out completely. Ideally, this never happens within your planned period.
Pro Tips for SWP Success
- 1. Use the Find Mode: Don't guess your starting withdrawal—use "Find Starting SWP" to calculate exact amount that depletes corpus in your desired period.
- 2. Run Stress Tests: Always check results in adverse scenarios (-4% returns, +2% inflation) to ensure real-world safety.
- 3. Consider Tax Impact: Use the "Tax on Returns" slider to model tax drag; keep emergency funds separate if tax rate is high.
- 4. Monitor Survival Probability: If Monte Carlo shows <90% success, increase corpus or reduce withdrawals by 10%.
- 5. Adjust for Inflation: Enable inflation-adjustment in withdrawals to preserve purchasing power; real corpus value matters, not nominal.
- 6. Plan for Longevity: Use 30+ year periods in planning; running out at 85 is risky. Target survival to 90+.
- 7. Tax-Optimize with LTCG: Use equity funds for SWP (10% LTCG) vs debt funds or FD (30% slab) to save significantly on taxes.