SWP Calculator
Draw a fixed amount every month while the rest keeps earning. See how long a corpus lasts — and what is left at the end — in lakh and crore.
Your withdrawal plan
Withdrawals are taken at the start of each month; the remaining balance then earns one month of return.
After the plan
Year-by-year ledger
Depletion year in green| Year | Withdrawn so far | Corpus left | In crore |
|---|
How an SWP is calculated
A Systematic Withdrawal Plan reverses a SIP: instead of adding money each month, you take some out. Every month the balance falls by your withdrawal W and whatever is left earns one month of return (1 + r/12). The corpus lasts as long as the growth keeps pace with the withdrawals; once a withdrawal is larger than the balance, the money runs out that month.
The tipping point is the perpetuity level, corpus × r ÷ 12 — the monthly amount the return alone can fund. At 8% p.a. a ₹1 crore corpus throws off about ₹66,667 a month forever, so a ₹60,000 withdrawal actually lets the corpus keep growing, while ₹80,000 exhausts it in a little over 22 years.
SWP questions
What is an SWP?
A Systematic Withdrawal Plan lets you redeem a fixed amount from a mutual fund at a set interval — usually monthly — while the rest of the units stay invested and continue to grow. It is a common way for retirees to turn a lump sum into a regular income stream.
How much can I withdraw from ₹1 crore forever?
Roughly the return the corpus earns. At 8% p.a. that is about ₹66,667 a month — the perpetuity level where withdrawals equal growth and the corpus stays put. Draw less, like ₹60,000, and the balance actually grows; draw ₹80,000 and it runs out in about 22 years. Real returns wobble, so most planners leave a margin below the perpetuity figure.
How is an SWP different from FD interest?
Both can give a monthly payout, but the mechanics and tax differ. FD interest is fully taxable each year at your slab rate. An SWP redemption is part capital and part gain, so only the gain portion is taxed — often making the effective tax lower, especially for equity funds held long term. This is a structural note, not tax or investment advice.