How to use this calculator
- Enter the amount you are investing.
- Enter how much you want to withdraw every month.
- Choose a yearly increase to keep up with rising prices, or leave it at 0%.
- Enter the yearly return you expect and how many years you need the income for.
- Read the money left, check for a warning that it runs out, and use the withdrawal guide below the results.
How the SWP is calculated
Every month the balance earns the yearly return ÷ 12, then that month's withdrawal is paid. The first payment comes one month after you invest. For a flat withdrawal this gives:
Balance = C × (1 + r)n − W × [((1 + r)n − 1) ÷ r]
C is the amount invested, W the monthly withdrawal, r the monthly return (yearly return ÷ 12 ÷ 100) and n the number of months. With a yearly increase, the calculator works month by month.
Example: withdrawing ₹30,000 a month from ₹50,00,000 at 8% for 20 years pays you ₹72,00,000 in total and leaves₹69,63,401. To use the whole amount up in exactly 20 years, you could withdraw ₹41,822 a month instead.
Frequently asked questions
What is an SWP?
A systematic withdrawal plan (SWP) pays you a fixed amount from a mutual fund every month (or quarter) by selling some of your units. The rest stays invested and keeps earning, so it is a common way to draw a regular income in retirement.
How much can I withdraw without touching my capital?
Roughly the monthly return on your money. From ₹50 lakh earning 8% a year, that is about ₹33,333 a month. The calculator shows this figure for your own numbers.
Why raise the withdrawal every year?
Prices rise, so a fixed income buys less each year. But rising withdrawals drain the fund faster: ₹30,000 a month from ₹50 lakh at 8% leaves ₹69.63 lakh after 20 years if kept flat, but ₹0 if raised 6% a year.
How long will my money last?
It depends on how much you take out and the return. With ₹30,000 a month rising 6% a year, ₹50 lakh earning 8% lasts 17 years 2 months. If the calculator shows a red warning, your money runs out before the period you chose.
Is the return guaranteed?
No. Mutual fund values go up and down, and a fall early in retirement does more damage because you are selling units at low prices. Many people keep a few years of withdrawals in safer debt funds or deposits for that reason. Try a lower return to see how much room you have.
How are SWP withdrawals taxed?
Each withdrawal is a sale of units, so only the gain part of it is taxed as a capital gain — not the whole amount. The rate depends on the type of fund and how long you held the units. This calculator shows amounts before tax.
Related calculators
- InvestingSIP CalculatorValue of a monthly investment
- InvestingStep-up SIP CalculatorSIP that rises every year
- InvestingLumpsum CalculatorGrowth of a one-time investment
- InvestingFD CalculatorFixed deposit maturity value
- InvestingRD CalculatorRecurring deposit maturity — bank or post office
- InvestingCAGR CalculatorYearly growth rate of an investment
Last updated . For information only — not financial advice. Check the final figures with your lender or bank.