SWP Calculator
An SWP calculator is a free online tool that computes how long your mutual fund corpus lasts when you withdraw a fixed amount every month — showing year-wise balance, total interest earned, and the exact year your corpus would deplete.
Year-wise Corpus Balance
| Year | Withdrawn | Balance |
|---|---|---|
| Year 1 | ₹1,20,000 | ₹9,58,500 |
| Year 2 | ₹2,40,000 | ₹9,13,556 |
| Year 3 | ₹3,60,000 | ₹8,64,881 |
| Year 4 | ₹4,80,000 | ₹8,12,167 |
| Year 5 | ₹6,00,000 | ₹7,55,077 |
| Year 6 | ₹7,20,000 | ₹6,93,249 |
| Year 7 | ₹8,40,000 | ₹6,26,289 |
| Year 8 | ₹9,60,000 | ₹5,53,771 |
| Year 9 | ₹10,80,000 | ₹4,75,235 |
| Year 10 | ₹12,00,000 | ₹3,90,180 |
| Year 11 | ₹13,20,000 | ₹2,98,065 |
| Year 12 | ₹14,40,000 | ₹1,98,305 |
| Year 13 | ₹15,60,000 | ₹90,265 |
| Year 14 | ₹16,60,000 | ₹0 |
Estimates only. Mutual fund returns are market-linked. Withdrawals are taxed as capital gains.
How to use SWP Calculator
- Enter your corpus — Type your total mutual fund investment amount.
- Enter monthly withdrawal — Add the amount you want to withdraw each month.
- Set expected return — Enter the expected annual return rate (6-10% typical).
- See sustainability — View year-wise balance and whether the corpus lasts your tenure.
Key features
- Year-wise corpus depletion timeline
- Sustainability check (lasts or depletes)
- Corpus depletion year detection
- Total interest earned vs withdrawn
- Adjustable return rate
- Quick preset amounts (₹5L to ₹1Cr)
- Post-tax withdrawal note
What is a Systematic Withdrawal Plan?
A Systematic Withdrawal Plan (SWP) is the mirror image of a SIP. Instead of investing a fixed amount monthly, you withdraw a fixed amount monthly from your mutual fund investment. The remaining corpus keeps earning market returns. SWP is popular among retirees and anyone who needs regular income from a lump sum — better tax treatment than FD interest in many cases, and full flexibility to change the withdrawal amount.
How Long Does a Corpus Last?
The answer depends on a simple tug-of-war: returns vs withdrawals. If your corpus earns ₹80,000/year in returns and you withdraw ₹1,20,000/year, you're dipping into principal — corpus shrinks by ₹40,000/year. If withdrawals equal returns, corpus stays flat forever. If returns exceed withdrawals, corpus keeps growing. Our calculator shows the exact year your corpus depletes, if at all, so you can plan with confidence.
SWP Tax Rules
Each SWP withdrawal is treated as a redemption of mutual fund units — so capital gains tax applies. For equity funds: long-term (>12 months) gains above ₹1.25 lakh/year are taxed at 12.5%, short-term at 20%. For debt funds: gains are taxed as per your income slab. The good news: unlike FD interest (fully taxable every year), SWP lets you control the tax by adjusting withdrawal amounts and using the annual LTCG exemption of ₹1.25 lakh.
SWP vs FD Interest vs Annuity
FD interest: fixed, fully taxable at your slab — a 7% FD becomes 4.9% post-tax for 30% slab. SWP: market-linked 8-10% returns, tax-efficient if structured well, corpus stays with you (unlike annuity). Annuity: guaranteed monthly income but you lose access to principal and returns are lower (5-6%). SWP wins on flexibility and long-term wealth preservation, but requires discipline and market tolerance.
Pro tips
- Withdraw 4-6% of corpus annually — historically sustainable long-term
- Use equity funds for growth, debt funds for stability in retirement
- Book ₹1.25 lakh LTCG annually to use full exemption
- Review withdrawal amount yearly against inflation
Common use cases
- Planning retirement income
- Regular income from lump sum
- Funding monthly expenses from investments
- Tax-efficient cash flow
- Post-retirement corpus management
Frequently asked questions
What is SWP?+
SWP (Systematic Withdrawal Plan) lets you withdraw a fixed amount monthly from your mutual fund corpus — the reverse of a SIP. Commonly used for retirement income.
How is SWP taxed?+
Each withdrawal is treated as a redemption. Equity funds: LTCG at 12.5% above ₹1.25 lakh/year, STCG at 20%. Debt funds: taxed as per your slab.
How long will my corpus last in SWP?+
Depends on corpus size, withdrawal amount, and returns. If returns exceed withdrawals, corpus grows. If withdrawals exceed returns, corpus depletes over time. This calculator shows the exact year.
What return rate should I assume?+
Equity funds: 8-10% conservative, 10-12% optimistic. Debt funds: 6-7%. Use 8% as a safe default for mixed portfolios.
Can I use SWP for retirement?+
Yes — SWP is one of the most popular retirement income strategies. It gives regular cash flow with better tax efficiency than FD interest in many cases.
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