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SWP Calculator

Planning to draw a monthly income from your investments? See how long your corpus lasts at any withdrawal rate.

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Your corpus lasts
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Total amount withdrawn—
Balance left at the end—

Illustrative projection using the assumptions you entered. Market returns are not guaranteed; actual results will differ. This is an educational tool, not financial advice.

Corpus balance over time

How it works

A Systematic Withdrawal Plan (SWP) is the reverse of a SIP: instead of investing monthly, you withdraw a fixed amount every month from an existing corpus while the rest stays invested. Retirees use SWPs to turn mutual fund holdings into a regular monthly income.

Each month: Balance = Balance × (1 + monthly return) − Withdrawal

This calculator simulates that month by month, for up to 50 years. The decisive comparison is between your withdrawal and what the corpus earns: withdraw less than the returns and the corpus can last indefinitely (the chart stays flat or rises); withdraw more and the balance falls — slowly at first, then faster, because a shrinking corpus earns less each month.

As a rough guardrail, withdrawing about 4–6% of the corpus per year has historically been sustainable for long periods in balanced portfolios, but there are no guarantees — markets decide the sequence. Review the withdrawal amount every year or two rather than setting it once forever.

Frequently asked questions

There is no guaranteed safe rate. A widely used planning range is 4–6% of the corpus per year from a balanced portfolio, adjusted over time. Higher withdrawals or poor early market returns shorten the corpus's life considerably.
Each withdrawal is partly a return of your investment and partly gains. In equity funds, the gains portion is taxed as capital gains (long-term at the prevailing rate above the annual exemption). The tax applies only to the gains slice, not the full withdrawal.
An SWP gives you control over the amount and timing, and is usually more tax-efficient than IDCW payouts, which are taxed at your slab on the full payout. Most advisors today prefer SWP for regular income from mutual funds.

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