SWP Details
Conservative: 8% · Balanced: 10% · Aggressive: 12%
Results update automatically
Corpus After Period
After 20 years
₹0
Total Withdrawn₹0
Returns Generated₹0
Monthly Withdrawal₹0
Year-by-Year Corpus Balance
| Year | Opening Balance | Returns Earned | Amount Withdrawn | Closing Balance |
|---|
How Does SWP Work?
In a Systematic Withdrawal Plan, your corpus stays invested while you withdraw a fixed amount every month. The remaining corpus continues to earn returns. If returns exceed withdrawals, your corpus can actually grow over time.
Each month:
Returns this month = Corpus × (annual rate / 12 / 100)
Corpus next month = Corpus + Returns - Monthly Withdrawal
Corpus survives as long as monthly returns >= monthly withdrawal.
Safe Withdrawal Rate
At 10% annual returns, your monthly return on a ₹50L corpus is ~₹41,667. So withdrawing ₹30,000/month leaves ₹11,667 to compound — meaning your corpus grows even while you withdraw. This is the sweet spot to aim for.
Frequently Asked Questions
What is a Systematic Withdrawal Plan (SWP)? ⌄
SWP lets you withdraw a fixed amount from your mutual fund every month, quarter, or year while the remaining corpus continues to grow. It is the mirror image of SIP — ideal for retirement income.
Is SWP better than FD for retirement? ⌄
SWP from an equity fund can provide higher inflation-adjusted income over the long term vs FD, but carries market risk. SWP from a debt/hybrid fund is more stable. FD gives guaranteed returns but erodes purchasing power due to inflation over 15–20 years.
How long will my corpus last with SWP? ⌄
If your monthly withdrawal rate exceeds the monthly returns generated by the corpus, it will gradually deplete. This calculator shows you the year-by-year balance so you can see exactly when (or if) the corpus runs out.
Is SWP taxable? ⌄
Each SWP withdrawal is treated as a redemption. For equity funds: STCG (15%) if held less than 1 year, LTCG at 12.5% above ₹1.25 lakh if held more than 1 year. For debt funds: taxed as per your income slab.
What is a safe withdrawal rate for India? ⌄
A commonly cited safe withdrawal rate for India is 3–4% of corpus per year. For a ₹1 crore corpus at 12% expected return, a monthly SWP of ₹30,000–₹40,000 (3.6–4.8% annually) is considered sustainable over 20–25 years.