ToolJoltTools

SWP Calculator — Systematic Withdrawal Plan

How long a corpus lasts under monthly withdrawals — ending balance, depletion check and sustainable-rate math.

Corpus left after horizon
Total withdrawn
Corpus lasts

Formula

Each month: corpus = corpus × (1 + return/12) − withdrawal ; the race is growth vs drawdown

Disclaimer: Assumes a constant annual return — real market returns vary year to year, and mutual-fund investments are subject to market risk. Educational math only, not investment advice.

Need swp calculator results fast? Skip the spreadsheet and get a clear, defensible answer in one step — free, private and instant, recalculating live as you change any input.

About SWP Calculator — Systematic Withdrawal Plan

An SWP is a SIP in reverse: the fund sells units worth a fixed amount every month and pays you — the standard machinery for converting a retirement corpus or windfall into monthly income. The defaults test ₹50 lakh paying ₹30,000/month at 9%: a 7.2% annual withdrawal rate that the verdict badge above adjudicates instantly. The arithmetic has a knife's edge: withdraw below the growth rate and the corpus sustains indefinitely (even grows); above it and depletion isn't linear — it accelerates, because each withdrawal shrinks the base that must out-earn the next one. Sequence risk sharpens the edge in real markets: a crash in the first three years of withdrawals hurts far more than the same crash later, which is why SWP corpora usually sit in hybrid/balanced funds rather than pure equity. SWP's tax edge over interest income is under-appreciated in India: each withdrawal is part principal (no tax) and part capital gain (taxed at favorable equity/debt CG rates), versus FD interest taxed fully at slab. For a retiree drawing ₹30,000/month, the effective tax on an SWP from an equity-oriented fund is typically a fraction of the same income via FD interest.

How to use SWP Calculator — Systematic Withdrawal Plan

  1. 1Enter Starting corpus, Monthly withdrawal, Expected annual return (%), Horizon to test (years) into the SWP Calculator.
  2. 2The result is computed automatically using Each month: corpus = corpus × (1 + return/12) − withdrawal ; the race is growth vs drawdown — there is no button to press; it updates live as you type.
  3. 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.

Why use SWP Calculator — Systematic Withdrawal Plan?

  • Computes swp calculator instantly with the correct formula — no spreadsheet needed
  • 100% free and unlimited, with no sign-up, login or paywall
  • Runs entirely in your browser, so the figures you enter are never uploaded or stored
  • Shows the formula, a live worked example and references so you can defend the number

Frequently asked questions

₹50 lakh se kitni monthly income le sakte hain?+

Sustainable chahiye to growth rate se neeche raho: 9% return par ~₹33–35,000/month (8%/yr) lambi avadhi tak chal sakta hai, ₹30,000 par corpus 20 saal baad bhi bana rehta hai. ₹45–50,000 kheenchne par wahi corpus 13–15 saal me khatam. Upar withdrawal badal kar verdict dekhte rahiye.

SWP FD ke monthly interest se behtar kyun?+

Teen wajah: (1) tax — SWP ka bada hissa principal hota hai jo tax-free hai, FD ka poora interest slab par; (2) growth — bacha corpus market me compound hota hai; (3) flexibility — amount kabhi bhi badal sakte hain. Risk bhi samjhein: FD guaranteed hai, SWP market par chalta hai — isliye balanced/hybrid funds se SWP karna standard practice hai.

When should I start an SWP after investing?+

Equity-fund SWPs started immediately invite exit loads (typically within 1 year) and short-term capital-gains rates — and sequence risk. Common pattern: build the corpus, let it season 12+ months, hold 2–3 years of withdrawals in a debt/liquid bucket, and SWP from the seasoned portion. The bucket absorbs crashes so you never sell equity at the bottom.

Can the SWP amount increase with inflation?+

Platforms increasingly offer top-up/step-up SWPs; otherwise revise manually each year. Inflation is the silent variable: ₹30,000 today needs ~₹54,000 in 10 years at 6% inflation. Test sustainability at the FUTURE withdrawal, not today's — raise the monthly figure here and watch the verdict flip.

Related tools

Related Finance tools

Sponsored