How to use the SWP Calculator
- 1
Enter the corpus you will invest.
- 2
Enter the amount you want to withdraw every month.
- 3
Set an assumed yearly return and the number of years you want the income.
- 4
Check the total withdrawn, the final balance and, if it runs out, how long the corpus lasts.
The formula
Each month: Balance = Balance × (1 + r) − Wr is the monthly rate (annual return ÷ 12 ÷ 100) and W is the monthly withdrawal. The balance first grows for the month, then the withdrawal is taken; this repeats until the period ends or the balance reaches zero.
Worked example
With ₹30 lakh, a withdrawal of ₹25,000 a month and an assumed 8% a year, the corpus lasts about 20 years and 3 months, paying out roughly ₹60.56 lakh in total. At ₹20,000 a month the monthly growth matches the withdrawal, so the ₹30 lakh stays intact in this illustration.
Tips
- Keep one to two years of withdrawals in a low-volatility debt fund so you are not forced to sell equity in a bad year.
- Start with a withdrawal a little below what the corpus earns, and raise it slowly if needed.
- Review the SWP amount every year, because expenses rise with inflation.
Frequently asked questions
How long will my retirement corpus last with an SWP?
It depends on how your withdrawal compares with the growth. If you withdraw less than the corpus earns, the balance may last indefinitely in the illustration. If you withdraw more, it shrinks, for example ₹30 lakh paying ₹25,000 a month at 8% lasts about 20 years.
Is SWP income taxable?
Only the gain portion of each withdrawal is taxed, not the whole amount. Each SWP instalment is a redemption of units, so capital gains tax applies to the profit in those units as per the fund type and holding period. Tax rules change, so confirm with your tax professional.
SWP or fixed deposit interest: which is better for monthly income?
They serve different needs. FD interest is fixed and taxed at your slab rate every year. An SWP from a mutual fund is market-linked, so the balance can rise or fall, but only gains are taxed on withdrawal. Many retirees use both for balance.
Can I change or stop my SWP later?
Yes, you can change the amount, date or stop an SWP by submitting a request to the fund house. The remaining units stay invested in your folio. We help you with the form and time the change so your monthly income is not disrupted.