SWP Calculator

Plan your regular withdrawals from mutual funds using a Systematic Withdrawal Plan (SWP) calculator. Calculate capital preservation and corpus lifespan.

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How a Systematic Withdrawal Plan Works

A systematic withdrawal plan (SWP) converts an invested corpus into a regular payout: you register a fixed withdrawal (monthly, for example) and the fund redeems units to pay you that amount. Unlike a fixed deposit that pays out interest and hands back the principal at maturity, an SWP leaves the remaining corpus invested, so the money you have not withdrawn keeps compounding while you draw from it. Our guide to what an SWP is covers the mechanics in detail.

Each withdrawal is a redemption at the prevailing NAV, not a payout of profit: part of what you receive is investment gain and part is your own capital returning to you. The amount, frequency and any step-ups are entirely under your control. Tax applies only to the gain embedded in each redemption, for equity funds, units held over 12 months are taxed at 12.5% above ₹1.25 lakh of gains a year, while units held under 12 months are taxed at 20%. Because redemptions follow a first-in, first-out order, the units sold first are usually the oldest, so an SWP from a long-held corpus mostly redeems long-term units.

The main risk in drawdown is sequence: a poor market early in the payout period, combined with fixed withdrawals, can deplete a corpus faster than the average return suggests. Many planners keep the initial withdrawal rate within 3-4% for retirements that must last 30 years or more, while shorter drawdowns can support higher payouts. The calculator above projects the balance year by year and estimates a corpus lifespan. To work in the other direction and find the corpus that funds a target income, start with the reverse SWP calculator; if you are still building the corpus, use the retirement planner.

Popular SWP Calculations

Click on any of the popular search scenarios below to load the calculator with pre-configured values:

Frequently Asked Questions

What is a systematic withdrawal plan (SWP)?
An SWP is a standing instruction to your mutual fund to redeem units and pay you a fixed amount at a fixed frequency, such as every month. It is commonly used to create a regular income from an accumulated corpus in retirement. Because only the units needed to fund each payout are redeemed, the rest of the corpus stays invested and continues to compound.
How is SWP taxed in India?
Only the gain portion of each redemption is taxable, not the full withdrawal amount. For equity funds, units held over 12 months are long-term, gains above ₹1.25 lakh in a financial year are taxed at 12.5%, while units held under 12 months attract 20% short-term capital gains tax. Redemptions follow a first-in, first-out order, so an SWP from a corpus held longer than a year mostly redeems long-term units; debt fund gains are taxed at your income slab rate.
What is the difference between SWP and IDCW in mutual funds?
Indian mutual funds no longer pay dividends in the traditional sense, payouts are structured as IDCW (Income Distribution cum Capital Withdrawal). An IDCW payout comes out of your own investment: the fund's NAV falls by the amount distributed, so your units are worth less after the payout, and the amount is taxed at your income slab rate. An SWP instead lets you decide the amount and timing, and only the gain embedded in each redemption is taxed at capital gains rates, with the first ₹1.25 lakh of equity long-term gains each year exempt. Neither route creates money from nothing; both draw down your corpus.
How long will my corpus last with a monthly SWP?
It depends on the initial withdrawal rate and the returns earned. In the calculator's fixed-return projection, a ₹50 lakh corpus paying ₹40,000 a month at 9% runs out around year 27, while a smaller ₹30,000 withdrawal lasts indefinitely on the same assumption. Real markets do not deliver a steady return every year, so stress-test the plan: a poor sequence of returns early in the drawdown depletes a corpus faster than the average suggests.

Formula & Mathematical Approach

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount regularly from an accumulated corpus.

i=(1+Return Rate100)112−1i = \left(1 + \frac{\text{Return Rate}}{100}\right)^{\frac{1}{12}} - 1
Balancet=(Balancet−1−Monthly Withdrawal)×(1+i)\text{Balance}_{t} = \left(\text{Balance}_{t-1} - \text{Monthly Withdrawal}\right) \times (1 + i)
Show Plain Text / Excel Formula
i = (1 + Return Rate / 100) ^ (1 / 12) - 1
Balance after withdrawal = (Current Balance - Monthly Withdrawal) * (1 + i)

Key Assumptions

  • Withdrawals are executed at the beginning of each month (annuity-due).
  • Interest is applied to the remaining balance after the monthly withdrawal.
  • The return rate is steady and withdrawals remain level.