What an SWP calculator tells you
A Systematic Withdrawal Plan is the mirror image of a SIP. Instead of paying a fixed amount into a mutual fund each month, you redeem a fixed amount out of it each month, while whatever remains stays invested and keeps growing. It is the standard way Indian investors convert a retirement corpus into a monthly income without selling everything at once.
The question an SWP calculator answers is the one that actually matters: will the money last? Enter your corpus, the monthly withdrawal you want and the expected return, and you get the total you will have withdrawn over the period and the projected value left at the end. If that final value is negative, the plan runs out of money before the period does.
How long does ₹1 crore last?
This is the single most-asked question about SWPs, and the answer swings sharply on the return assumption. When the monthly withdrawal is smaller than the growth the corpus generates, the corpus is never depleted at all — at 8% a year, ₹1 Crore throws off roughly ₹66,667 a month in growth alone.
| Monthly withdrawal | At 7% p.a. | At 8% p.a. | At 10% p.a. |
|---|---|---|---|
| ₹30,000 | Never runs out | Never runs out | Never runs out |
| ₹50,000 | Never runs out | Never runs out | Never runs out |
| ₹75,000 | 21 yr 6 mo | 27 yr 6 mo | Never runs out |
| ₹1,00,000 | 12 yr 6 mo | 13 yr 9 mo | 17 yr 11 mo |
For a fuller treatment of this scenario, including what those withdrawals are worth after inflation, see monthly income from ₹1 crore.
How to use this SWP calculator
- Enter your corpus in total investment. If you arrived from the combined SIP and SWP calculator, your SIP total is already filled in.
- Set the monthly withdrawal you need.
- Set the expected annual return for the withdrawal years. Most people assume less here than during accumulation, because portfolios usually hold more debt near and after retirement.
- Set the SWP period.
- Check the final value. Positive means the corpus outlives the plan; negative means it does not.
The SWP formula
FV = C × (1 + i)n − W × [ ((1 + i)n − 1) ÷ i ]
C is the opening corpus, W the fixed monthly withdrawal, i the monthly rate and n the number of months. The first term grows the corpus; the second subtracts each withdrawal along with the growth it would otherwise have earned.
How SWP withdrawals are taxed in India
An SWP redemption is treated as a mutual fund redemption, and only the capital gain portion of each withdrawal is taxable — not the entire amount, which is what makes an SWP more tax-efficient than interest income for many investors. For equity-oriented funds, units held longer than twelve months attract long-term capital gains tax, with an annual exemption on gains up to a threshold; units sold sooner attract short-term rates. Debt-oriented funds follow different rules. Tax law changes, thresholds move, and your own slab matters, so confirm the current position with a qualified tax professional rather than relying on a calculator.
Disclaimer: Every figure on this page is an illustration produced by a compounding formula, not a forecast and not investment advice. Mutual fund returns are market-linked and are neither guaranteed nor uniform year to year. Verify your own plan with a SEBI-registered investment adviser before acting on it.