SWP Calculator
Plan your retirement income. See how long your corpus will last with regular withdrawals.
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Balance Over Time
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Plan Your Retirement Income
SWP (Systematic Withdrawal Plan) lets you withdraw a fixed amount from your investments regularly while the remaining balance continues to earn returns. It's the opposite of SIP—instead of building wealth, you're converting it to income.
The key question: Will your corpus last as long as you need it? Our calculator simulates withdrawals over time and shows exactly when—or if—your money runs out.
Key Concepts
The 4% Rule
Withdraw 4% of your corpus annually to make it last 30+ years. This is the gold standard for retirement planning sustainability.
Inflation Adjustment
Increase withdrawals yearly to maintain purchasing power. Start lower and increase 3-5% annually to beat inflation.
Return vs Withdrawal
If returns exceed withdrawals, corpus grows. If withdrawals exceed returns, corpus depletes. Balance is key.
Max Safe Withdrawal
The highest monthly amount that lasts exactly your target years. Our calculator shows this optimal amount.
All Features
Frequently Asked Questions
What is SWP (Systematic Withdrawal Plan)?
SWP is a facility to withdraw a fixed amount from your mutual fund investments at regular intervals (monthly, quarterly). It's the opposite of SIP. Your remaining balance continues to earn returns while you receive regular income.
What is the 4% rule?
The 4% rule suggests withdrawing 4% of your corpus annually to make it last 30+ years. At 4%, you withdraw less than typical investment returns, allowing the corpus to sustain. Our calculator checks if your withdrawal rate is safe.
SWP vs Dividend: which is better?
SWP is more tax-efficient than dividends in most countries. In SWP, only the capital gains portion of withdrawal is taxable. Dividends are fully taxable at your income tax slab rate. SWP also gives you control over withdrawal timing and amount.
What happens if my corpus gets depleted?
If withdrawals exceed returns, your corpus shrinks and eventually runs out. Our calculator shows exactly when depletion occurs. To prevent this: reduce withdrawal amount, increase expected returns, or choose inflation-adjusted mode to start lower.
Should I use fixed or inflation-adjusted SWP?
Fixed withdrawal gives same amount monthly—simple but loses purchasing power. Inflation-adjusted increases withdrawal annually to maintain lifestyle. Start with lower amount if using inflation-adjusted to ensure sustainability over long term.
What is a safe withdrawal rate?
3-4% annually is considered safe for 30+ year retirement. Some advisors suggest 3% for conservative planning. Above 5% significantly increases depletion risk. Our calculator shows your current rate and warns if too high.
What return rate should I expect?
Conservative estimates: 5-6% for balanced funds, 7-9% for equity funds, 3-4% for debt funds. Use post-tax returns for accuracy. Being conservative is safer—overestimating returns leads to faster depletion.
Can I do SWP from any mutual fund?
Most mutual funds allow SWP. For income needs, choose low-volatility funds like balanced advantage, equity savings, or debt funds. Pure equity funds can have large NAV swings, making withdrawal amounts unpredictable in value terms.
How is SWP taxed?
In SWP, each withdrawal is part principal (tax-free) and part gains (taxable). For equity funds held over 1 year, gains above threshold are taxed at LTCG rates. For debt funds, gains are added to income. Consult tax advisor for your situation.
What is max safe withdrawal?
Max safe withdrawal is the highest monthly amount that makes your corpus last exactly your target duration at your expected return rate. Our calculator shows this amount—going above it means running out before your target period ends.