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SWP Calculator — Systematic Withdrawal Plan

Design a steady monthly retirement income from your mutual fund corpus while your remaining units continue compounding.

₹
₹
%
Yrs
Final Remaining Corpus Value
₹2.77 Cr
Annual Withdrawal Rate: 7.20% of initial corpus
Initial Corpus
₹1.00 Cr
₹1,00,00,000
Total Withdrawn
₹1.44 Cr
₹1,44,00,000
Net Wealth Created
₹2.21 Cr
Withdrawn + Final − Initial
Withdrawn vs Remaining Corpus
Corpus Trajectory Over Time Gold: Balance | Green: Cum. Withdrawn

Year-Wise SWP Cashflow & Remaining Balance Table

Year Opening Balance Annual Withdrawn Interest / Gains Earned Closing Balance

How SWP Math Works (With Worked Example)

Every month in a Systematic Withdrawal Plan, your corpus earns a monthly return i = annualRate / 12 while paying out a fixed withdrawal W at the end of each month:

Bm = Bm−1 × (1 + i) − W

Worked Example

Suppose you retire with ₹1,00,00,000 (₹1 Cr) in a Balanced Advantage Fund earning 10% p.a. (i = 0.008333/month) and withdraw ₹60,000/month:

  • In Month 1, your ₹1 Cr earns ₹83,333 in growth and pays out ₹60,000, leaving ₹1,00,23,333.
  • Because your monthly growth (₹83.3K) exceeds your withdrawal (₹60K), your corpus never depletes—after 20 years you will have withdrawn ₹1.44 Crore and still hold ₹2.77 Crore!

Practical SWP Rules for Indian Retirees

1. Guard Against Sequence-of-Returns Risk

If a sharp stock market crash happens in the first 2 years of your retirement, withdrawing from a 100% equity fund locks in permanent unit losses. Keep 3–5 years of expenses in Liquid/Arbitrage funds and run your SWP from there.

2. Why SWP Beats FD on Tax

When you withdraw ₹60,000 from a mutual fund SWP, only the capital-gains portion embedded in those redeemed units is taxed—unlike an FD where every rupee of interest is taxed at up to 30%.

SWP Frequently Asked Questions

Your principal begins to draw down each month. Our calculator simulates every month and displays an exact red depletion alert telling you the exact year and month your corpus hits ₹0.

Retirees commonly use Arbitrage Funds, Equity Savings Funds, or Balanced Advantage Funds because they enjoy favourable equity taxation (12.5% LTCG above ₹1.25L after 12 months) with lower volatility than pure small/mid-cap funds.

No. For Resident Indian investors, AMCs do not deduct TDS on mutual fund redemptions or SWP payouts (TDS applies only to NRIs or mutual fund dividends above ₹5,000).