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SWP Calculator

An SWP (Systematic Withdrawal Plan) is the mirror image of a SIP: your corpus stays invested while a fixed amount is redeemed every month. The tension is simple — withdrawals drain the corpus while returns refill it. This calculator simulates that race month by month.

Enter the starting corpus, the monthly withdrawal, an assumed return and your horizon. You get the projected balance at the end of the horizon, the total withdrawn, and — if the withdrawal rate is too aggressive — the month the money runs out.

Your withdrawal plan
₹
₹
% p.a.
Hybrid/debt-heavy corpora are commonly modelled at 7–9%.
years
Projection
Balance after 20 years
₹69,63,401
≈ ₹69.63 L
Corpus lastsIndefinitely at this return
Total withdrawn over horizon₹72,00,000
Growth earned meanwhile₹91,63,401
Assumes a steady return — real markets deliver it unevenly, and poor early years hurt far more than the same years later (sequence risk). Keep 2–3 years of withdrawals in low-volatility assets as a buffer.

How it works

  • Each month the balance grows at the monthly rate (annual ÷ 12), then the withdrawal is deducted.
  • If the withdrawal is smaller than a month's growth, the corpus never depletes at the assumed return.
  • The simulation runs to your horizon, and beyond it (up to 100 years) to find the depletion point.

Frequently asked questions

What is a safe monthly withdrawal rate?

A widely used starting point is 4–6% of the corpus per year (₹33,000–₹50,000 per month per ₹1 crore). Below the expected return, the corpus can sustain or grow; above it, you are consuming principal and the depletion date becomes very sensitive to market luck.

What does this simulation ignore?

Sequence risk — real returns arrive unevenly, and a crash in the first years of withdrawals does far more damage than the same crash later, even with an identical average return. Treat the steady-return projection as a best case and keep a 2–3 year buffer in debt.

How is SWP taxed?

Each withdrawal is a redemption, so it is a capital-gains event — only the gain portion of each instalment is taxed, not the whole withdrawal. For equity funds: units older than 12 months at 12.5% (above the ₹1.25 lakh annual exemption), younger at 20%. This usually beats slab-taxed interest income.

SWP or the fund's IDCW (dividend) option?

SWP, for most people: you choose the amount and the timing, and only the gain component is taxed. IDCW payouts are decided by the fund and taxed fully at your slab rate.

Related tools

Lumpsum CalculatorInflation & Real Return CalculatorGoal SIP Calculator

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This tool is an educational estimate, not investment or tax advice. Rates and rules change — verify current figures and consult a professional before acting.