A SWP (Systematic Withdrawal Plan) calculator shows how long your investment corpus lasts when you make regular monthly withdrawals.
About this calculator
A SWP (Systematic Withdrawal Plan) calculator shows how long your investment corpus lasts when you make regular monthly withdrawals. The corpus continues to earn returns on the remaining balance while you withdraw, the key question is whether the returns outpace the withdrawals.
If returns exceed the withdrawal rate, your corpus actually grows over time. If withdrawals exceed returns, the corpus depletes. SWP calculators help retirees plan sustainable withdrawal rates.
Common uses
- Determine a safe monthly withdrawal amount for retirement income
- Check if a ₹1 crore corpus can sustain ₹40,000/month withdrawals for 20 years
- Find the withdrawal rate at which a corpus neither grows nor depletes
- Model corpus depletion across different market return scenarios
Frequently asked questions
What is a safe withdrawal rate?
The '4% rule' from retirement research suggests withdrawing 4% of your portfolio annually (about 0.33% per month) provides a high probability of the corpus lasting 30 years. However, in India, with higher inflation and varying market returns, 3–3.5% annual withdrawal is often considered safer.
How is SWP different from dividend payouts?
Dividends are paid by the fund from its income and are not guaranteed or predictable. SWP is a systematic redemption of your units at the prevailing NAV, you choose the amount and frequency, giving you full control over your withdrawal plan.
Is SWP tax-efficient?
SWP from equity funds held over 1 year attracts Long Term Capital Gains (LTCG) tax at 12.5% (above ₹1.25 lakh LTCG per year). Each redemption is split between capital and gains, so only the gain portion is taxed. This is generally more tax-efficient than receiving interest income from debt instruments.