SWP Calculator

See how long your savings last when you take a monthly income from them, raised every year to keep up with inflation.

Your details

1. How much money do you have?

₹

₹1L₹50Cr

₹1 Cr

2. Your monthly income required?

₹

₹1K₹10L

₹55,000

3. How long will you withdraw income?

years

1 yr50 yrs

4. Expected rate of return on investment?

% a year

0%20%

5. Yearly increase in income (inflation)?

% a year

0%15%

Raises the monthly income once a year so it keeps its buying power.

Your money would last20+ yearsand there would still be money left, lasting 20 years 4 months in all

Taking ₹55,000 a month from ₹1 Cr for 20 years leaves ₹7.67 L at the end. You are taking out 6.6% a year, which is on the high side, so watch it.

Total taken out: ₹2,42,78,490; over 20 years, rising 6% a year
Left at the end: ₹7,66,820; after 20 years

Year-by-year withdrawalsShow

Year	Taken out	Left at year end
1	₹6,60,000	₹1,02,08,249
2	₹6,99,600	₹1,03,93,734
3	₹7,41,576	₹1,05,51,919
4	₹7,86,071	₹1,06,77,704
5	₹8,33,235	₹1,07,65,377
6	₹8,83,229	₹1,08,08,542
7	₹9,36,223	₹1,08,00,048
8	₹9,92,396	₹1,07,31,914
9	₹10,51,940	₹1,05,95,240
10	₹11,15,056	₹1,03,80,112
11	₹11,81,959	₹1,00,75,500
12	₹12,52,877	₹96,69,144
13	₹13,28,050	₹91,47,428
14	₹14,07,733	₹84,95,240
15	₹14,92,197	₹76,95,828
16	₹15,81,728	₹67,30,630
17	₹16,76,632	₹55,79,095
18	₹17,77,230	₹42,18,484
19	₹18,83,864	₹26,23,654
20	₹19,96,896	₹7,66,820

How it works

The plan is run month by month. At the start of each month the withdrawal comes out, and whatever is left earns a month of return. The monthly rate is the one that compounds to exactly your annual return over twelve months. At the start of every new year the withdrawal is raised by the yearly increase. If the balance cannot cover a withdrawal, that is the month the money runs out.

Bₘ = (Bₘ₋₁ − Wₘ) × (1 + i), i = (1 + R)^(1/12) − 1

Bₘ: Money left at the end of month m
Wₘ: Withdrawal in month m, raised by g at the start of each year
R: Expected annual return
i: Equivalent monthly return

Worked example

₹1 Crore invested at 9% a year, taking ₹55,000 a month for 20 years, with the income raised 6% every year.

1Monthly return: 1.09^(1/12) − 1 ≈ 0.7207%
2Year 1: ₹55,000 a month, ₹6,60,000 in the year, which is 6.6% of the corpus
3Year 2: ₹58,300 a month, and so on, reaching about ₹1,65,000 a month by year 20
4Twenty years of withdrawals add up to ₹2,42,78,490

You take out ₹2.43 Crore in all and still have about ₹7,66,820 left after 20 years.

Frequently asked questions

What is an SWP?

A Systematic Withdrawal Plan is a standing instruction to a mutual fund to pay you a fixed amount at a regular interval, usually monthly, by selling just enough units. The rest of the money stays invested and keeps earning. It is the mirror image of an SIP, and it is a common way to draw a pension-like income from savings after retirement.

How much can I safely withdraw each year?

A common rule of thumb is to start at around 3-4% of the corpus a year and raise it with inflation. That has historically lasted 30 years or more. At 6% and above, the money tends to run out within 20-25 years unless returns are strong. Treat these as rough guides: the right rate depends on your returns, how long you need the income, and whether you have other income.

Why raise the withdrawal every year?

Because prices rise. ₹55,000 a month buys far less in 15 years than it does today. Raising the income by the inflation rate keeps your standard of living steady. Setting the yearly increase to 0% shows a flat income, which lasts longer on paper but is worth less and less each year.

Is the income from an SWP taxed?

Only the gains inside each withdrawal are taxed, not the whole amount, since part of every payment is your own money coming back. The rate depends on the fund type and how long the units sold were held. This calculator ignores tax, because the rules keep changing, so the income you receive will be a little lower than shown.

SWP or a fixed deposit: which is better for monthly income?

An FD pays fixed interest, taxed in full at your slab rate, and leaves the principal untouched. An SWP from an equity or hybrid fund can earn more and is taxed more lightly, but the value goes up and down with the market. Many retirees keep a few years of spending in safer options and draw an SWP from the rest.

What if the market falls early in my withdrawals?

That is the biggest risk, known as sequence-of-returns risk. Selling units while prices are low uses up more of the corpus, and those units are no longer there when markets recover. This calculator assumes one steady return, which real markets never give, so leave a margin: try a lower return and check the money still lasts.