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SWP Calculator — Calculations & Slabs for FY 2026-27

Enter your corpus, monthly withdrawal amount, and expected return to project how long your mutual fund investment lasts using the SWP depletion formula.

1. Investment Variables

Sustainable Withdrawals

When setting up an SWP, try to keep your annual withdrawal rate below or near the fund's average return rate (e.g. 6-7% p.a.). This protects your capital and lets the remaining fund grow indefinitely.

Common Questions & Calculator Insights

What is a Systematic Withdrawal Plan (SWP) and how does it work?

An SWP is a mutual fund facility that allows you to withdraw a fixed sum of money at regular intervals (monthly, quarterly, etc.) from your existing lumpsum investment. It acts as a regular cash flow, making it ideal for retirees who need a monthly income.

How is an SWP different from an annuity or pension plan?

With an annuity, you give your capital to an insurance company in exchange for a fixed pension, losing access to your principal. With an SWP, the capital remains in your mutual fund account, allowing you to access the entire balance whenever you want while earning potentially higher market-linked returns.

Can the remaining balance in my SWP account run out?

Yes. If your monthly withdrawal rate is higher than the rate at which your remaining fund balance earns interest, your principal will steadily decrease. Over time, this can deplete your entire account balance to zero. Keeping your withdrawal rate under 6-8% is generally recommended.

How are mutual fund SWP withdrawals taxed in India?

Each withdrawal under an SWP is treated as a redemption of mutual fund units. Only the capital gains portion of the withdrawal (not the principal) is taxable. For equity funds held over a year, gains are taxed under LTCG rules (12.5% tax above ₹1.25 lakh gains per year).

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

Rates sourced from official government portals — see data sources & verification dates

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth Last verified: 2026-06-30

What Does This Calculator Do?

You have a lumpsum amount sitting in a mutual fund. You want to pull out a fixed amount every month — like a salary — without touching a bank FD or breaking your entire investment. This calculator does that math for you.

It tells you three things: how much your monthly payout will cost you, how long your corpus will last at that withdrawal rate, and what balance remains at the end of your chosen time period. This is the tool people use to plan retirement income, systematic dividend alternatives, or any situation where you need regular cash from a large investment.

The key problem it solves: most people either withdraw too much (and run out of money ahead of schedule) or too little (and leave value on the table). This calculator shows you exactly what happens with your specific numbers — month by month — so you can adjust before committing.

How to Use It

  1. Total Investment (Corpus): The full amount currently sitting in your mutual fund account. This is your starting balance — the number you would see on your mutual fund statement today.
  2. Monthly Withdrawal (SWP Amount): The exact rupee amount you want to pull out every month. Be realistic — this is what you will actually receive in your bank account each month.
  3. Expected Annual Return: The percentage at which the remaining fund balance grows each year. Most balanced/debt mutual funds in India return 7%–12% annually. Use a conservative number like 8% if you are unsure.
  4. Time Period (Years): How many years you plan to run this withdrawal plan. Retirees often model 20–30 years. You can run it for any duration to see when the corpus depletes.

The Logic Explained Simply

  • The Concept: Your mutual fund balance earns returns every month on whatever is left inside. At the same time, you are pulling money out every month. These two forces work against each other — growth adds to the balance, withdrawals reduce it. If your annual return rate is higher than your annual withdrawal rate (as a % of corpus), the balance actually grows over time. If your withdrawal rate is higher than the return rate, the balance shrinks and eventually hits zero.
  • The Formula: The calculator loops through every month and applies this logic:

Monthly Interest Earned = Current Balance × (Annual Rate ÷ 12 ÷ 100)

End-of-Month Balance = Current Balance + Monthly Interest − Monthly Withdrawal

This is applied month by month to build a complete schedule showing every payout and every remaining balance.

engine_type: compiled — the schedule array is computed via a month-by-month loop, not a closed-form formula, to give you accurate per-period values.

Real-World Calculation Breakdown

Inputs:

  • Total corpus: ₹50,00,000
  • Monthly withdrawal: ₹30,000
  • Expected annual return: 9%
  • Time period: 20 years (240 months)

What the calculator shows:

  • Monthly rate used: 9% ÷ 12 = 0.75%
  • Month 1 interest earned: ₹50,00,000 × 0.0075 = ₹37,500
  • Month 1 closing balance: ₹50,00,000 + ₹37,500 − ₹30,000 = ₹50,07,500

Because the monthly interest earned (₹37,500) is greater than the monthly withdrawal (₹30,000), the corpus actually grows in month 1. This pattern continues.

After 20 years (240 months):

  • Total withdrawn: ₹30,000 × 240 = ₹72,00,000
  • Remaining balance: approximately ₹98,20,000

You received ₹72 lakhs in steady monthly income — more than your original ₹50 lakh investment — and you still have ₹98 lakhs left in the fund. This is the compounding effect working for you. Flip the scenario: raise withdrawal to ₹50,000/month with the same corpus and 9% return, and the balance depletes to zero in roughly 17 years. The calculator lets you test both scenarios instantly.

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