SWP Calculator — Plan a Monthly Income From Your Investments

What is an SWP Calculator?

An SWP calculator (SWP कैलकुलेटर) answers the question every retiree and income-seeker asks: "If I take out a fixed amount every month, how long will my money last?" A systematic withdrawal plan (SWP) is the reverse of a SIP. Instead of putting money into a mutual fund every month, you take a fixed amount out, while the remaining balance stays invested and keeps earning.

This free tool simulates your corpus month by month. It shows the balance left at the end, the total you withdrew, the returns your money earned along the way, how many years and months the money lasts and the safe withdrawal — the level monthly amount that would last exactly your chosen period. An optional step-up raises your withdrawal every year to keep pace with inflation.

Key Features

• Month-by-month simulation, not a rough yearly estimate.
• Fixed or rising withdrawals with a yearly step-up percentage.
• Balance left, total withdrawn and returns earned.
• "Money lasts" — the exact year and month the corpus runs out, if it does.
• Safe monthly withdrawal for your chosen period.
• Year-by-year table and a copyable summary.

How to Use It

1. Enter your total investment (the corpus you will withdraw from).
2. Enter the withdrawal per month.
3. Enter the expected yearly return of the fund.
4. Enter the time period in years.
5. Optionally tick increase the withdrawal every year and set the percentage.
6. Read the balance left, how long the money lasts and the safe withdrawal.

How the Calculation Works

The calculator repeats two steps for every month:

1. Take the withdrawal from the balance at the start of the month.
2. Add one month's return on what remains: balance × (yearly return ÷ 12).

If step-up is on, the withdrawal rises by the chosen percentage at the start of each new year. The simulation stops early if the balance hits zero. The safe withdrawal uses the annuity-due formula: W = P × i ÷ [(1 − (1 + i)⁻ⁿ) × (1 + i)], where i is the monthly rate and n the number of months.

Worked Example: ₹10 Lakh at 8%

You invest ₹10,00,000 in a fund expected to earn 8% a year and withdraw ₹8,000 a month for 10 years.

You took out almost the whole original amount and still have about three-quarters of it left, because the balance kept earning. If you tick a 5% yearly step-up, you withdraw ₹12,07,478 over the 10 years and about ₹4,24,760 is left — less, but your income kept rising with prices.

How Long Does ₹10 Lakh Last?

At an 8% return, here is what different monthly withdrawals do to a ₹10 lakh corpus over 30 years:

The lesson is simple: the withdrawal rate matters far more than small changes in return. Withdrawing about 6% a year from a fund earning 8% leaves the capital growing; withdrawing 12% a year empties it in under 14 years.

Return assumptions matter too. With ₹8,000 a month from ₹10 lakh, a 6% return runs the money out after 16 years 4 months, while a 10% return still leaves about ₹16 lakh after 30 years. Run a cautious case before you commit.

Example: A Retirement Income

A retiree with ₹50 lakh wants ₹30,000 a month for 25 years and expects 8%.

• Fixed ₹30,000: the money easily lasts 25 years, with about ₹79.8 lakh left — because ₹3.6 lakh a year is only 7.2% of the corpus.
• Rising 5% a year: the corpus runs out after about 18 years 8 months, short of the 25-year goal.

The second case is the honest one, because prices rise. A fixed ₹30,000 will buy far less in year 20 than today. Use the step-up option and our Inflation Calculator to see the real picture, and adjust the starting withdrawal until the money lasts.

SWP vs FD Interest vs Post Office MIS

Many retirees combine them: a guaranteed base from Post Office schemes or FDs, and an SWP for inflation-beating growth. See our Post Office MIS & SCSS Calculator for the guaranteed part.

How SWP is Taxed

An SWP is tax-efficient because every withdrawal is treated as a redemption of units, and each unit's sale is part original capital and part gain. Only the gain is taxable. In the early years most of each withdrawal is your own money coming back, so the taxable amount is small.

• Equity funds: units held over 12 months — long-term gains taxed at 12.5% above ₹1.25 lakh a year; units held 12 months or less — short-term gains at 20%.
• Debt funds bought on or after 1 April 2023: gains are taxed at your income tax slab, whatever the holding period.
• Add 4% cess. Tax rules change, so confirm with the Income Tax Department or a tax adviser.

Use our Capital Gains Calculator to estimate tax on a particular redemption.

Sequence-of-Returns Risk

The calculator assumes the same return every year. Real markets do not behave that way, and the order of returns matters when you are withdrawing. If the market falls 20% in your first year of SWP, you sell more units at low prices to get the same rupees, and those units are gone forever. Two retirees with the same average return can end up with very different results depending on when the bad years arrive.

Ways to reduce this risk:

• Keep 1–2 years of withdrawals in a liquid or ultra-short fund and refill it in good years.
• Use a lower withdrawal rate than the maximum the calculator allows.
• Prefer hybrid or balanced funds for the income portion.
• Be ready to cut withdrawals slightly after a bad year.

Tips for a Sustainable SWP

• Start with the safe withdrawal shown by the calculator, then go lower for a margin.
• Choose growth option units; the SWP itself creates your income.
• Check exit loads — many equity funds charge 1% on units sold within a year.
• Review every year and adjust the amount if the corpus has fallen behind plan.
• Plan for inflation using the step-up option.

Common Mistakes

• Assuming high returns — 12% equity returns in your plan can mean running out early in reality.
• Ignoring inflation — a fixed withdrawal loses buying power every year.
• Withdrawing from a pure equity fund in the first year — short-term gains and exit loads both bite.
• No emergency buffer — a medical bill can force a big redemption at a bad time.

Quick Glossary

• Corpus: the total amount you start withdrawing from.
• Withdrawal rate: yearly withdrawals as a percentage of the corpus.
• Step-up: a yearly percentage increase in the withdrawal.
• Annuity-due: payments made at the start of each period.
• Exit load: a fee charged for redeeming units within a set period.

Why Use This SWP Calculator?

A monthly income plan is only as good as its assumptions. This calculator shows the full picture — how long the money lasts, what is left and the safe level of income — and lets you test a cautious return, a rising withdrawal and different periods in seconds. It runs entirely in your browser, needs no sign-up and stores nothing. Pair it with our Retirement Calculator to work out how big a corpus you need in the first place, and with the Lumpsum Calculator to see how a corpus grows before you start withdrawing.

SWP Calculator — Key Facts

Frequently Asked Questions

Explore More Prompt Minds Tools

SWP Calculator works great alongside our other free tools. Every Prompt Minds tool runs entirely in your browser — no sign-up, no uploads, no watermarks. Browse all free tools.