MyFinCards

SWP Calculator

Take a fixed amount out of a corpus every month and the question is not what you end with — it is whether the money lasts. This calculator simulates the corpus month by month and tells you the month it runs out, rather than reporting a negative balance. Paying in instead? Use the SIP calculator.

₹5,00,000
₹10,000₹1,00,00,000
₹10,000
₹500₹10,00,000
8%
1%30%
5 Yr
1 Yr30 Yr
Total investment₹5,00,000
Total withdrawal₹6,00,000
Final value₹5,218

Where the Corpus Went

Corpus Left After 5 Years

₹5,218

This corpus lasts the full 5 years

You withdraw ₹6,00,000 over 60 months and still have ₹5,218 left. The ceiling before it starts eating into the term is ₹10,000 a month.

Each month the corpus grows first and the withdrawal comes out after — the reverse of a SIP instalment, which goes in at the start. We read 8% as an effective annual return, so the monthly growth is 1.08001/12 − 1, and the corpus is simulated month by month. The closed-form shortcut keeps subtracting after the money is gone and reports a negative final value, which is why this page reports a date instead.

Worked Example: ₹10,000 a Month from ₹5,00,000

You invest ₹5,00,000 once, it earns an effective 8% a year, and you take ₹10,000 out at the end of every month for 5 years. In the first month it grows by about ₹3,217 and then loses ₹10,000 — so the corpus moves by the difference, not by the withdrawal.

You put in

₹5,00,000

a single investment

You take out

₹6,00,000

over 60 months

Left at the end

₹5,218

before tax and expense ratio

A steady return is the weak assumption here

An SWP sells units every month, so a fall early on sells more units to raise the same rupees and permanently shrinks the corpus. That is sequence risk, and it hurts a withdrawal plan far more than an accumulation plan. Each withdrawal is also a redemption, so capital gains tax applies to the gain portion of every instalment.

What this Calculator Does

It answers the only question that matters about a withdrawal plan: does the corpus survive the term. If it does, you get the balance left over and the ceiling before it stops surviving. If it does not, you get the month it empties and the total you would really have received — which is always less than the amount you asked for.

How to Use It

1

Set the corpus you are starting with.

2

Set what you want to withdraw every month, and for how many years.

3

Set a return you are comfortable assuming — lower than for a SIP, since the corpus is being drawn down.

4

If it runs out early, click the suggested sustainable withdrawal to see the amount that lasts.

What It Does Not Include

The withdrawal stays flat in rupee terms, so inflation is not modelled — its purchasing power falls every year. Capital gains tax on each redemption, exit load and the scheme's expense ratio are all excluded. And the steady return is the weakest assumption of all: an SWP sells units monthly, so a fall early in the term does lasting damage that an average return hides.

Expert FAQ

Frequently Asked Questions

A Systematic Withdrawal Plan is a standing instruction to redeem a fixed amount from a mutual fund holding at a fixed interval, usually monthly. It is the mirror image of a SIP: instead of buying units every month you sell some, while the rest of the corpus stays invested and keeps growing.
It simulates the corpus month by month. Each month the balance grows at the monthly equivalent of your annual return, then the withdrawal comes out. If the balance reaches zero before the term ends, the calculator stops and reports the month it ran out and the total that could actually be withdrawn.
Because they use the closed-form formula P × (1+r)^n − W × ((1+i)^12n − 1) ÷ i and do not check whether the corpus survived. The formula keeps subtracting withdrawals after the money has gone, so it returns a negative number — a corpus that owes you money. Groww's own default inputs over a ten-year term produce −₹7,21,780 that way. The real answer is that the corpus empties in month 61.
That is the figure this page calculates for you: the largest monthly withdrawal that still leaves the corpus standing at the end of your chosen term. As a rough guide, withdrawing less than the corpus earns each month means it never shrinks at all — at 8% a year that is about ₹6,400 a month per ₹10 lakh.
Usually yes, on two counts. An SWP gives you a predictable amount on a date you choose, whereas a dividend is declared at the fund's discretion and only out of realised surplus. Tax treatment also favours the SWP: a withdrawal is a redemption taxed as capital gains on the gain portion only, while a dividend is added to your income and taxed at your slab rate.
Each withdrawal is a redemption, so only the gain portion of that instalment is taxable, not the whole amount. Units are redeemed first-in-first-out. For equity funds, units held over a year attract long-term capital gains tax and newer units the higher short-term rate, which is why a long-running SWP becomes more tax-efficient over time.
Lower than you would for a SIP. An SWP is normally run off a debt or conservative hybrid fund precisely because the corpus is being drawn down and cannot afford a bad year, which is why this calculator defaults to 8% rather than 12%. Run it again two or three points lower to see how much of your term depends on the assumption.
An SWP sells units every month. If the market falls early, each withdrawal sells more units to raise the same rupees, and those units are gone before the recovery. The corpus is permanently smaller even if the average return over the whole period is exactly what you assumed. The same bad year late in the term costs far less. No steady-rate calculator, including this one, models that.
Yes. The mandate can be increased, reduced or cancelled at any time, and the remaining corpus simply stays invested. There is no penalty for stopping, though exit load may apply to units redeemed within the scheme's exit load period.
No. The withdrawal stays flat in rupee terms for the whole period, so its purchasing power falls every year. A ₹10,000 monthly withdrawal twenty years from now buys roughly what ₹3,100 buys today at 6% inflation. If you need the withdrawal to keep pace, the corpus has to be considerably larger than this calculator suggests.