What is the SWP Calculator?
The SWP (Systematic Withdrawal Plan) Calculator helps you determine how long your invested corpus will last when you withdraw a fixed amount every month. It applies the expected annual return to the remaining balance each month after deducting your withdrawal. This tool is invaluable for retirees and anyone planning to live off their investments, as it shows exactly how long the money lasts and what the remaining balance will be at any point in time.
How to Use
- 1.Enter your total invested corpus amount.
- 2.Set the monthly withdrawal amount you require.
- 3.Enter the expected annual return rate on your investment.
- 4.Set the withdrawal period in years to see balance projections.
- 5.The calculator shows portfolio longevity, total withdrawn, and remaining balance.
Formula Used
Where r = monthly return = annual rate / 12 / 100
W = monthly withdrawal amount
The formula is applied iteratively for each month. If your corpus earns more in returns than you withdraw each month, it grows or stays stable. For example, a ₹50 lakh corpus with ₹30,000/month withdrawal at 8% annual return lasts 25+ years.
Frequently Asked Questions
What is an SWP (Systematic Withdrawal Plan)?
An SWP lets you withdraw a fixed amount from your mutual fund investment at regular intervals while the remaining corpus continues to earn returns. It is widely used by retirees seeking regular monthly income from their accumulated savings.
Is SWP better than FD for retirement income?
SWP can offer higher post-tax returns than FD for investors in higher tax brackets because only the capital gains portion of each SWP withdrawal is taxed. FD interest is fully taxable at slab rate. However, SWP returns are market-linked and not guaranteed like FDs.
How is SWP taxed in India?
For equity mutual funds, SWP withdrawals held over 1 year attract 10% Long-Term Capital Gains (LTCG) tax above ₹1 lakh annually. Short-term gains are taxed at 15%. For debt funds, gains are added to income and taxed at your slab rate.
What is the ideal SWP withdrawal rate?
A commonly cited guideline is the 4% rule — withdrawing no more than 4% of corpus per year to ensure sustainability for 25+ years. In India, with equity returns of 10–12%, a monthly withdrawal of 0.5–0.7% of corpus is generally considered sustainable long-term.