WealthJot.ai
WealthJot.ai
💸 SWP Calculator
Systematic Withdrawal Plan — how long will your corpus last?

SWP: corpus lasts for grows to 40.3 yr, based on the entered inputs.

Formula

Each month: Balance = (Previous Balance × (1 + r)) − Withdrawal Amount, where r = monthly return rate, until the corpus is exhausted or the period ends

Worked example
InputValue
Initial Corpus₹1,00,00,000
Monthly Withdrawal₹50,000
Expected Annual Return10%
Annual Withdrawal Step-Up5%
Corpus Lasts For40.3 yr
Total Amount Withdrawn₹7,38,87,862
Balance After 10 Years₹1,46,89,892
Balance After 20 Years₹1,95,99,579
Annual Withdrawal (Year 1)₹6,00,000
Sustainable Withdrawal Rate10.53%

How an SWP builds a retirement paycheck

A systematic withdrawal plan is the SIP run in reverse: a fixed amount is redeemed from your fund every month and lands in your bank like a salary. The corpus keeps growing on whatever remains — the race the calculator models is *your withdrawal rateHow much you can withdraw yearly in retirement without running out. vs the fund’s return*.

Example₹1 crore corpus, ₹50,000/month (6% a year): if the fund earns ~8%, the corpus actually grows while paying you; at 6% it holds roughly steady; at 4% it depletes in ~28 years. Push the withdrawal to ₹75,000 (9%) and even an 8% return sees the corpus exhausted in ~20 years — the withdrawal rateHow much you can withdraw yearly in retirement without running out., not the return, is the lever you control.
SWP is more tax-efficient than interest income for most retirees: each withdrawal is part return-of-capital (never taxed) and part capital gainProfit from selling an asset above its purchase price. (equityA unit of ownership in a company. LTCG at 12.5% beyond the ₹1.25 lakh annual exemption) — versus FDA bank deposit locked for a fixed term at a fixed rate. or annuityA product that pays a guaranteed regular income. interest taxed fully at slab. The same ₹50,000 a month typically leaves more in hand after tax via SWP.
Common mistakeRunning a full-equityA unit of ownership in a company. SWP and meeting a crash in year one — withdrawing fixed rupees from a fallen NAV burns units fastest exactly when they’re cheapest (sequence-of-returns risk). Retirees pair SWP with a bucket structure: 2-3 years of withdrawals in debt funds, the rest in equityA unit of ownership in a company., refilled in good years.
✓ You learnedKeep the withdrawal rateHow much you can withdraw yearly in retirement without running out. at 4-6% of the corpus, hold 2-3 years of payouts in a debt bucket to survive crashes, and let the SWP’s return-of-capital tax treatment stretch the corpus further than interest income ever would.
FAQs
How much corpus do I need for ₹50,000 a month?

At a sustainable 5-6% withdrawal rate, roughly ₹1 to ₹1.2 crore — and closer to ₹1.5 crore if you want the income to grow with inflation over a 30-year retirement. Run the calculator with your own return assumption a notch conservative (7-8% for a balanced portfolio) and check the corpus survives to your planning age.

Is SWP better than the dividend (IDCW) option?

Almost always. IDCW payouts are decided by the fund house (irregular, not guaranteed) and taxed fully at your slab; an SWP is an amount you control, taxed gently as part-capital, part-gain. Growth plan + SWP is the standard retirement-income structure for fund investors.