SWP Calculator India

Systematic Withdrawal Plan — how long will your retirement corpus last?

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Retirement Corpus₹1,00,00,000
Monthly Withdrawal₹50,000
Expected Annual Return8 %
Withdrawal Step-up / yr5 %

Corpus Lasts

24y 5m

Safe Monthly SWP (30yr)

43.8 K

Tip

Withdrawing 50.0 K/mo depletes your corpus in 24 years. The safe withdrawal amount keeps your corpus intact for 30 years with a 5% annual step-up.

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How this calculator works

A Systematic Withdrawal Plan (SWP) is the retirement income strategy of regularly withdrawing a fixed amount from your investment corpus each month, while the remaining corpus continues to earn returns. SWP is now the preferred strategy for Indian retirees over traditional FDs — it is more tax-efficient (only the gain portion of equity mutual fund withdrawals is taxed, and LTCG up to ₹1 lakh is tax-free), and returns are typically higher than FD rates. The "safe withdrawal rate" concept comes from US research (the "4% rule") but needs adjustment for India. Indian inflation averages 6%, equity returns average 10–12%, and life expectancy is rising. A 3–4% withdrawal rate (3–4% of corpus per year) is generally considered safe for 30-year retirements. This calculator does the precise month-by-month simulation. It tells you two things: (1) how long your corpus lasts at your chosen withdrawal rate, and (2) the maximum monthly amount you can withdraw and still have the corpus last 30 years. The annual step-up in withdrawal mimics a pension — it ensures your monthly income keeps pace with inflation.

Frequently Asked Questions

What is SWP in mutual funds?⌄

SWP (Systematic Withdrawal Plan) lets you automatically withdraw a fixed amount from your mutual fund every month. The remaining units continue to earn returns. It is the standard retirement income strategy in India, offering better tax efficiency than FD interest.

What is a safe withdrawal rate in India?⌄

A 3–3.5% annual withdrawal rate (e.g., withdrawing ₹3–3.5 lakh per year from a ₹1 Crore corpus) is generally considered safe for 30-year retirements in India. Higher rates risk depleting the corpus, especially during market downturns.

How is SWP taxed in India?⌄

For equity mutual funds held over 1 year, gains are taxed at 10% LTCG (after ₹1 lakh exemption). For debt funds, gains are taxed at your income tax slab. This makes equity SWP far more tax-efficient than FD interest, which is fully taxable.

Which is better — SWP or FD for retirement?⌄

SWP from balanced/debt mutual funds typically offers better post-tax returns than FDs, inflation-adjusted growth for the corpus, and more flexibility. FDs offer predictability. Most financial planners recommend a combination.

Can I increase my SWP amount each year?⌄

Yes — this is called a step-up SWP and is strongly recommended. Increasing your monthly withdrawal by 5–6% annually keeps your income in line with inflation. Our calculator models this step-up in its corpus depletion simulation.