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Plan your retirement withdrawals with our free SWP calculator. See how long your corpus lasts and optimize your withdrawal strategy.
Total Withdrawn
₹1,20,00,000Final Balance
₹3,53,12,295Total Returns
₹3,73,12,295Sustainable
Lasts full 20 years
| Year | Opening | Withdrawal | Interest | Closing |
|---|---|---|---|---|
| 1 | ₹1,00,00,000 | ₹50,000 | ₹83,333 | ₹1,00,33,333 |
| 2 | ₹1,04,18,852 | ₹50,000 | ₹86,824 | ₹1,04,55,676 |
| 3 | ₹1,08,81,564 | ₹50,000 | ₹90,680 | ₹1,09,22,244 |
| 4 | ₹1,13,92,727 | ₹50,000 | ₹94,939 | ₹1,14,37,667 |
| 5 | ₹1,19,57,416 | ₹50,000 | ₹99,645 | ₹1,20,07,062 |
| 6 | ₹1,25,81,236 | ₹50,000 | ₹1,04,844 | ₹1,26,36,079 |
| 7 | ₹1,32,70,377 | ₹50,000 | ₹1,10,586 | ₹1,33,30,964 |
| 8 | ₹1,40,31,681 | ₹50,000 | ₹1,16,931 | ₹1,40,98,611 |
| 9 | ₹1,48,72,703 | ₹50,000 | ₹1,23,939 | ₹1,49,46,642 |
| 10 | ₹1,58,01,790 | ₹50,000 | ₹1,31,682 | ₹1,58,83,472 |
| 11 | ₹1,68,28,166 | ₹50,000 | ₹1,40,235 | ₹1,69,18,401 |
| 12 | ₹1,79,62,016 | ₹50,000 | ₹1,49,683 | ₹1,80,61,700 |
| 13 | ₹1,92,14,596 | ₹50,000 | ₹1,60,122 | ₹1,93,24,718 |
| 14 | ₹2,05,98,337 | ₹50,000 | ₹1,71,653 | ₹2,07,19,990 |
| 15 | ₹2,21,26,973 | ₹50,000 | ₹1,84,391 | ₹2,22,61,365 |
| 16 | ₹2,38,15,678 | ₹50,000 | ₹1,98,464 | ₹2,39,64,142 |
| 17 | ₹2,56,81,213 | ₹50,000 | ₹2,14,010 | ₹2,58,45,223 |
| 18 | ₹2,77,42,093 | ₹50,000 | ₹2,31,184 | ₹2,79,23,277 |
| 19 | ₹3,00,18,774 | ₹50,000 | ₹2,50,156 | ₹3,02,18,930 |
| 20 | ₹3,25,33,853 | ₹50,000 | ₹2,71,115 | ₹3,27,54,969 |
| 20 | ₹3,50,70,044 | ₹50,000 | ₹2,92,250 | ₹3,53,12,295 |
A Systematic Withdrawal Plan (SWP) is a facility that allows you to withdraw a fixed amount from your mutual fund investments at regular intervals. The remaining corpus continues to earn market-linked returns, potentially providing income for a long time.
When you start an SWP, your invested corpus earns returns each month based on market performance. A fixed amount is withdrawn from this corpus periodically. If the returns earned exceed your withdrawal amount, your corpus continues to grow. If withdrawals exceed returns, your principal gradually depletes, potentially exhausting your corpus before the planned duration.
If you invest ₹50,00,000 and withdraw ₹20,000 per month at an expected return of 8% per annum, your corpus will last beyond 30 years. The total amount withdrawn over 30 years would be ₹72,00,000, and you would still have a significant remaining balance thanks to the returns earned.
The 4% rule, developed from the Trinity Study, suggests that withdrawing 4% of your initial corpus annually (adjusted for inflation) is a safe strategy to make your retirement corpus last 30 years. For a ₹1 crore corpus, this means withdrawing about ₹33,333 per month. Higher withdrawal rates increase the risk of exhausting your corpus early.
SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount regularly from your mutual fund investments while the remaining corpus continues to earn returns.
You invest a lump sum, and each month a fixed amount is withdrawn. The remaining balance continues to earn returns, potentially extending the life of your corpus.
A withdrawal rate of 4-6% of your initial corpus is generally considered sustainable. Our calculator shows if your corpus will last the full duration.
If your monthly withdrawal exceeds the returns earned by your corpus, your principal will decrease over time. This can lead to premature exhaustion of your corpus, meaning your money runs out before the planned duration.
SWP offers tax efficiency since only the capital gains portion of each withdrawal is taxed, while the principal portion is tax-free. Lump sum withdrawals may push you into a higher tax bracket in a single year. SWP also provides regular cash flow like a pension.