SWP Calculator
Enter your invested corpus and monthly withdrawal to see how many years the money lasts — while the balance keeps growing.
Runs entirely in your browser — your numbers never leave this page.
How it works
An SWP (Systematic Withdrawal Plan) is the mirror of a SIP: instead of investing monthly, you withdraw monthly from a lump sum that keeps compounding:
Balancenext = Balance × (1 + r) − Withdrawal
- The 4% rule, Indian edition: withdrawing ~4–5% of the corpus yearly (growing with inflation) has historically lasted 25–30 years at 9–10% returns.
- Withdrawal growth matters: a 6% yearly rise in withdrawals (to beat inflation) shortens the corpus life far more than people expect — this calculator models it.
- Sequence risk: a market crash early in the SWP hurts disproportionately, because you sell more units when prices are low. Keeping 1–2 years of withdrawals in debt cushions this.
- Tax: SWP redemptions from equity funds held >1 year are LTCG (12.5% above Rs 1.25L/year gains); debt-fund redemptions are taxed at your slab.
- SWP beats FD interest ladders for most retirees: the corpus keeps growing while you draw from it.
Frequently asked questions
How long will my money last with SWP?
It depends on corpus, withdrawal, and returns. Rs 1 crore at 10% with Rs 50,000/month growing 6% yearly lasts roughly 24 years. Raise the return or cut the withdrawal growth and it stretches dramatically.
What is a safe SWP withdrawal rate?
4–5% of the starting corpus per year (adjusted for inflation) is the classic safe zone — historically lasting 25–30 years at 9–10% returns. Above 7%, the corpus usually shrinks in real terms.
SWP vs FD for retirement income?
SWP usually wins: the corpus compounds at ~10% while you withdraw, versus FDs paying ~7% taxable interest on a static principal. SWP also has better tax treatment on equity funds.
Is SWP taxable?
Only the gains portion of each redemption. Equity fund SWPs held over a year: 12.5% LTCG above Rs 1.25 lakh/year. Debt funds: taxed at your slab rate.
Should my SWP withdrawals grow with inflation?
Ideally yes — a 6% yearly rise keeps purchasing power flat. But it shortens corpus life a lot, so model it (this calculator does) rather than assuming flat withdrawals.
What is sequence-of-returns risk?
Bad returns early in an SWP hurt far more than bad returns late, because you are forced to sell cheap. A 1–2 year debt buffer for withdrawals is the standard defense.
Can I pause or change my SWP?
Yes — SWP amount and frequency can be modified or stopped anytime, unlike annuities. That flexibility is its biggest advantage in volatile markets.
SWP from equity or debt funds?
A mix: equity for growth (better tax treatment too), debt for stability. A common retiree split is 40–60% equity, rebalanced yearly as you withdraw.
What happens if I outlive the projection?
Plan conservatively: assume you live to 90, use 8–9% returns not 12%, and keep reviewing yearly. This calculator caps at 100 years — "lasts forever" means withdrawals are below the growth rate.
Is SWP better than a pension plan?
Usually yes for returns and flexibility — pension/annuity rates (~7.5%) are fully taxable yearly, while SWP taxes only gains. Annuities win only if you want zero market involvement.