SWP Calculator in Ahmedabad
A Systematic Withdrawal Plan (SWP) lets you draw a fixed amount from your mutual-fund corpus every month while the rest stays invested and keeps growing. Enter your corpus, the monthly withdrawal and an expected return to see the balance year by year and how long your money lasts.
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How it's calculated
The formula
Each month: balance = balance × (1 + i) − W, where i is the monthly return (annual ÷ 12 ÷ 100) and W is the monthly withdrawal. The balance is floored at zero when the corpus is exhausted.
Assumptions
- A constant expected return for the whole period (real returns fluctuate).
- Withdrawals at month-end; no exit load, expense ratio or capital-gains tax modelled.
- A fixed withdrawal amount (no inflation step-up).
Sources
Real-world scenarios
See exactly how the numbers play out in the situations people actually face — so there are no surprises before you commit.
₹30,000 a month from a ₹50 lakh corpus
Drawing ₹30,000 a month from a ₹50 lakh corpus that earns 8% means you withdraw ₹72 lakh over 20 years and still have a balance left over — because the corpus earns slightly more than you take out. A well-set SWP can pay you for decades without running dry.
Withdrawal rate is everything
If your monthly withdrawal exceeds what the corpus earns, the balance shrinks every year and eventually hits zero. Keeping the annual withdrawal at or below your expected return — often a 4–6% rule of thumb — is what makes the income sustainable for life.
Why an SWP beats FD interest for income
An SWP is more tax-efficient than FD interest: each withdrawal is mostly your own capital, so only the small gains portion is taxed, and long-term equity gains enjoy lower rates. For retirees, that can mean noticeably more money in hand each month.
Illustrative figures on standard reducing-balance / compounding assumptions — your actual numbers may vary.
Frequently asked questions
The details worth knowing before you rely on these numbers.
What is an SWP?
A Systematic Withdrawal Plan lets you withdraw a fixed amount from your mutual-fund investment at regular intervals (usually monthly) while the remaining units stay invested and continue to grow. It is a popular way to create a regular income, especially in retirement.
How is SWP calculated?
Each month the calculator grows your balance by the monthly return, then subtracts your withdrawal. It repeats this for every month of the period to show the balance year by year and whether the corpus lasts.
Is SWP better than a dividend or interest payout?
Often yes. An SWP is more tax-efficient because each withdrawal is treated as part capital and part gain, so only the gain is taxed (as capital gains) — unlike interest, which is fully taxed at your slab.
What return should I assume for an SWP?
For a stable regular income, most investors use hybrid or debt-leaning funds with a conservative 7%–9% expected return. Higher equity exposure can grow the corpus faster but adds volatility to your withdrawals.
Can my SWP corpus run out?
Yes — if your withdrawal rate is higher than what the corpus earns, the balance depletes over time. This calculator shows exactly when. A safe withdrawal rate is typically 4%–6% of the corpus per year.
How is the money from an SWP taxed?
Each withdrawal is treated as part return of your own capital and part gain, and only the gain is taxed. For equity funds, gains are long-term (12.5% above the ₹1.25 lakh yearly exemption) once units are held over a year; debt fund gains are taxed at your slab. This usually makes an SWP more tax-efficient than fully taxable interest income.
When should I start an SWP?
An SWP is typically used at retirement to turn an accumulated corpus into a regular monthly income. The common pattern is to build the corpus during your working years — often through SIPs — then switch to an SWP when you need the income, so the money keeps growing until you actually draw on it.
SWP or an annuity — which is better for retirement income?
They trade off differently. An SWP keeps you in control: you can change the amount, stop anytime, and any balance passes to your heirs — but the income is market-linked and can deplete if you withdraw too fast. An annuity pays a fixed income for life regardless of markets, but usually at a lower rate and with little flexibility. Many retirees blend the two.
Is this SWP calculator free?
Yes — it is free, needs no sign-up, and runs entirely in your browser. Your inputs stay on your device unless you choose to speak with an Apex TechFin advisor.
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