SWP — Systematic Withdrawal Plan Calculator
Plan your monthly withdrawal from a mutual fund corpus — and see how long your money lasts at your target return.
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How this calculator works
A Systematic Withdrawal Plan (SWP) is the reverse of SIP: you invest a lump sum and withdraw a fixed amount every month. The remaining corpus stays invested and continues to grow. If your annual return is higher than the withdrawal rate, the corpus can survive indefinitely. If withdrawals exceed growth, the corpus depletes over time. SWP is popular for retirement income because it's tax-efficient — only the gain portion of each withdrawal is taxed as capital gains.
Monthly balance = Previous balance × (1 + monthly rate) − monthly withdrawal | Corpus survives if: Annual return % > (Annual withdrawal ÷ Corpus) × 100
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
The 4% rule for SWP
If you withdraw 4% or less of your corpus annually, a 10–12% return portfolio should last indefinitely. This is the FIRE community's safe withdrawal rate.
Tax advantage over FD interest
In SWP, only the gain portion of each withdrawal is taxed (LTCG at 10% after ₹1L). FD interest is taxed at your full income slab — often 30%.
Sequence of returns risk
Bad early years (market crash right after retirement) can deplete corpus faster. Consider maintaining 1–2 years of expenses in liquid funds as a buffer.
Frequently Asked Questions
If you withdraw 4% or less of your corpus annually, a 10–12% return portfolio should last indefinitely. This is the FIRE community's safe withdrawal rate.
In SWP, only the gain portion of each withdrawal is taxed (LTCG at 10% after ₹1L). FD interest is taxed at your full income slab — often 30%.
Bad early years (market crash right after retirement) can deplete corpus faster. Consider maintaining 1–2 years of expenses in liquid funds as a buffer.