SWP Calculator — Systematic Withdrawal Plan Returns & Duration
Calculate how long your mutual fund investment will last with a Systematic Withdrawal Plan. Find the right withdrawal amount for your retirement corpus.
SWP is the reverse of SIP — instead of investing a fixed amount monthly, you withdraw a fixed amount from your mutual fund investment. It's the most tax-efficient way to generate regular income from your retirement corpus or any large investment.
The CalcHub SWP Calculator shows how long your money will last at a given withdrawal rate, or how much you can safely withdraw each month.
How SWP Works
You invest a lump sum in a mutual fund and set up monthly withdrawals. The remaining invested amount continues to earn returns. As long as returns exceed withdrawals, your corpus grows. When withdrawals exceed returns, the corpus depletes.
SWP Sustainability Table
Starting corpus: ₹50,00,000 at 10% annual returns:| Monthly Withdrawal | Annual Withdrawal | Withdrawal Rate | Corpus After 10 Years | Corpus After 20 Years | Lasts Until |
|---|---|---|---|---|---|
| ₹25,000 | ₹3,00,000 | 6% | ₹52,50,000 | ₹67,30,000 | Indefinitely |
| ₹35,000 | ₹4,20,000 | 8.4% | ₹41,20,000 | ₹28,50,000 | ~30 years |
| ₹42,000 | ₹5,04,000 | 10.1% | ₹33,80,000 | ₹0 | ~20 years |
| ₹50,000 | ₹6,00,000 | 12% | ₹23,60,000 | ₹0 | ~15 years |
| ₹75,000 | ₹9,00,000 | 18% | ₹0 | ₹0 | ~8 years |
The Safe Withdrawal Rate
The "4% rule" from US retirement research suggests withdrawing 4% of your corpus annually (adjusted for inflation) to sustain a 30-year retirement. In India, with higher inflation and different market dynamics, 5–6% is more commonly discussed:
| Corpus | 5% Annual (Monthly) | 6% Annual (Monthly) | 7% Annual (Monthly) |
|---|---|---|---|
| ₹50 lakh | ₹20,833 | ₹25,000 | ₹29,167 |
| ₹1 crore | ₹41,667 | ₹50,000 | ₹58,333 |
| ₹2 crore | ₹83,333 | ₹1,00,000 | ₹1,16,667 |
| ₹3 crore | ₹1,25,000 | ₹1,50,000 | ₹1,75,000 |
| ₹5 crore | ₹2,08,333 | ₹2,50,000 | ₹2,91,667 |
SWP Tax Advantage
This is SWP's biggest advantage over FD interest or dividend income:
With SWP, each withdrawal is part capital + part gains:- Only the gains portion is taxable
- After 1 year of investment, gains qualify as LTCG (12.5% above ₹1.25 lakh)
- Short-term gains (within 1 year) taxed at 20%
SWP vs Dividend Plan vs FD Interest
| Feature | SWP | Dividend/IDCW | FD Interest |
|---|---|---|---|
| Amount control | You choose exact amount | Fund house decides | Fixed rate |
| Regularity | Fixed, predictable | Irregular | Fixed |
| Tax efficiency | Very high (capital + gains split) | Taxable at slab rate | Taxable at slab rate |
| Corpus growth | Remaining continues growing | No control | Fixed |
| Inflation adjustment | Can increase withdrawals | No control | Rate fixed at deposit |
How to Use the Calculator
- Open the CalcHub SWP Calculator
- Enter total invested amount (corpus)
- Enter monthly withdrawal amount
- Enter expected annual return rate (8–12%)
- See: how long the corpus lasts, remaining balance over time, total withdrawn vs total returns
Best Funds for SWP
SWP works best with funds that provide steady, moderate returns with lower volatility:
| Fund Type | Typical Returns | Suitability for SWP |
|---|---|---|
| Balanced Advantage / Dynamic Asset Allocation | 9–12% | Excellent |
| Equity Savings Fund | 8–10% | Good |
| Aggressive Hybrid | 10–13% | Good (higher volatility) |
| Conservative Hybrid | 8–10% | Good |
| Large-cap equity | 10–13% | Moderate (volatile) |
| Debt funds | 7–8% | Conservative, stable |
When should I start SWP instead of SIP?
When you need regular income — typically at or near retirement. The ideal transition: SIP during working years (accumulation phase) → SWP during retirement (distribution phase). Some people also use SWP for regular income during career breaks or sabbaticals.
Can I change my SWP amount?
Yes. Most fund houses allow you to modify or stop SWP online at any time. You can increase withdrawals when you need more, decrease them when markets are down, or pause entirely.
What if markets crash while I'm running SWP?
This is "sequence of returns risk" — the biggest danger in retirement. A market crash in early retirement forces you to sell units at low prices, depleting your corpus faster. Mitigation: keep 1–2 years of expenses in liquid/debt funds, and reduce equity withdrawal during downturns.
Related Calculators
- SIP Calculator — the accumulation counterpart
- Mutual Fund Calculator — lumpsum and SIP projections
- Retirement Calculator — plan the full retirement picture
- FD Calculator — compare with fixed deposit income