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SWP Calculator
See how long your corpus lasts — monthly income, inflation, after-tax, and a Monte-Carlo survival check. Accurate, instant and free — for India.
What these mean:
What these mean:
What these mean:
₹3,90,180 remaining after 10 years. Withdrew ₹12,00,000 total.
Remaining balance
120 mosHow SWP returns and depletion are calculated
A Systematic Withdrawal Plan redeems mutual-fund units each month to pay you a fixed income. The remaining corpus continues earning returns. This calculator models four layers: the core month-by-month simulation, inflation-stepped withdrawals, after-tax net income (capital gains on the gains portion — equity vs debt), and a depletion verdict(“lasts N years M months” or “never depletes”). It also supports a SIP → SWP lifecycle (accumulate via SIP, then draw) and a safe-rate solver (what monthly withdrawal lasts exactly N years).
Core SWP formula
Month-by-month simulation
r = annual rate ÷ 12 · W = monthly withdrawal
Withdrawal at period end. Closed form for fixed W: Final = P·(1+r)^n − W·[((1+r)^n − 1)/r]. When W ≤ P·r, the corpus never depletes (withdraw only the monthly return). When W > P·r, simulate until balance ≤ 0 — that month is the depletion month.
After-tax SWP income
Gain-fraction method — equity vs debt
Only the gain portion is taxed; capital (cost) returned is tax-free
Each withdrawal splits into gain and capital. Equity: LTCG 12.5% above ₹1.25 L/yr (held >12 mo); STCG 20% (held ≤12 mo). Debt (units bought on/after 1 Apr 2023): slab rate, no exemption, no holding-period distinction. The annual ₹1.25 L LTCG exemption is applied once per 12-month window, not per withdrawal.
SIP → SWP lifecycle
One unbroken accumulate-then-draw timeline
Switch month = SIP years × 12; the chart shows one continuous balance line with a phase marker
Accumulate monthly contributions for N years via SIP, then roll the maturity corpus directly into an inflation-indexed SWP drawdown. This one-flow view — no competitor offers it — directly serves the “SIP SWP calculator” search (KD ~30).
Safe-rate & inverse solver
What monthly withdrawal lasts exactly N years?
Withdraw only the monthly return → corpus never shrinks; binary-search solver finds W for any target depletion month
The perpetual level is the floor: withdraw any more and the corpus will eventually deplete. The inverse solver uses binary search (60 iterations) to find the exact monthly withdrawal that depletes the corpus at precisely your target tenure.
₹10L corpus, 8%, ₹10,000/month for 10 years
Initial corpus ₹10,00,000; annual return 8%; monthly withdrawal ₹10,000; tenure 10 years (120 months); monthly rate r = 8% ÷ 12 = 0.6667%.
- 1Monthly rate: r = 8% ÷ 12 = 0.6667% per month.
- 2Growth factor: (1.006667)^120 ≈ 2.2197.
- 3Closed-form final balance: Final = 10,00,000 × 2.2197 − 10,000 × [(2.2197 − 1) / 0.006667] = 22,19,700 − 18,29,520 ≈ ₹3,90,180.
- 4Total withdrawn: ₹10,000 × 120 months = ₹12,00,000. The corpus survives because 8% returns continue to grow the remaining balance.
- 5Perpetual (never-deplete) level: Wsafe = 10,00,000 × (0.08 / 12) ≈ ₹6,667/mo. At ₹10,000/mo the corpus declines slowly but the 8% return cushions the draw over 10 years.
Engine precision
Projection assumptions
SWP taxation: equity LTCG, STCG, and debt slab
Each SWP withdrawal is a redemption of mutual-fund units at the current NAV. Only the gains portion of each withdrawal is taxable — the return of your original capital (cost basis) is not. The gain fraction= (balance − cost basis) ÷ balance rises as the corpus appreciates.
India MF capital-gains rules (FY 2025-26)
Frequently asked questions
An SWP lets you withdraw a fixed amount from a mutual-fund corpus every month. Each withdrawal redeems units from your fund at the current NAV. The remaining units continue to earn returns. The key equation is: balance = balance x (1 + r) - W, where r is the monthly return (annual rate / 12) and W is the monthly withdrawal. If W is less than or equal to the monthly return, the corpus never depletes. If W exceeds the return, the corpus declines and eventually runs out at the depletion month.
Each SWP withdrawal is a partial redemption of mutual-fund units, so only the gains portion is taxed -- the return of your original capital is not. For equity funds: gains on units held more than 12 months are Long-Term Capital Gains (LTCG), taxed at 12.5% above Rs 1.25 lakh per financial year (Budget-2024); gains on units held 12 months or less are Short-Term Capital Gains (STCG), taxed at 20%. For debt funds (units purchased on or after 1 April 2023): all capital gains are taxed at your income slab rate, regardless of holding period. There is no TDS for resident investors.
Whether your corpus lasts depends on the withdrawal relative to the monthly return. If your monthly withdrawal is less than or equal to corpus x (annual rate / 12), the corpus never depletes -- this is the perpetual or safe-rate level. If withdrawal exceeds that level, simulate month by month until balance reaches zero; that month is the depletion month. Inflation step-up withdrawals can turn a sustainable plan into a depleting one over time -- the calculator surfaces the exact depletion month when it applies.
A Fixed Deposit (FD) pays a fixed interest rate with full capital protection but the interest is fully taxable at your slab rate and FD rates rarely beat inflation over long periods. An annuity (from an insurance company) guarantees income for life but is irreversible -- you give up the corpus. An SWP keeps your corpus invested in a market-linked fund, so returns can potentially beat inflation; only the gains portion is taxed (not the full withdrawal); and the remaining corpus stays liquid. The tradeoff is market risk -- returns are not guaranteed and a bad sequence of returns early in retirement can deplete the corpus faster than the flat-rate model suggests.
A commonly cited heuristic is the 4% rule (withdraw 4% of corpus annually, i.e., about 0.33% per month). In an Indian context with equity fund returns averaging 10-13% and inflation ~5-6%, a monthly withdrawal of 0.5% of the corpus (6% annually) is often sustainable. However, the exact safe rate depends on your corpus size, expected return, inflation rate, and tenure. This calculator lets you solve for the exact withdrawal that lasts precisely N years via the safe-rate mode, and shows the perpetual level (corpus x monthly return) that never depletes.
Method, assumptions & references
Methodology: month-by-month simulation Bn = Bn-1×(1+r)−W verified against ClearTax and Groww. Closed form Final = P(1+r)^n − W×[((1+r)^n−1)/r] engine-exact at ₹10L/8%/₹10k/120mo → ₹3,90,180. After-tax: gain-fraction method; equity LTCG 12.5%/₹1.25L (Budget-2024) + STCG 20%; debt at slab (post-Apr-2023 units) — confirmed via ClearTax/Upstox. Monte-Carlo: 500 seeded paths, deterministic. Safe-rate: binary search (60 iters). Returns and tax estimates are projections, not investment advice.
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How we calculate this
Reviewed by Reckonist Editorial · Last reviewed 15 June 2026. Figures follow the methods and sources set out in our editorial standards.
This is a projection based on the figures you enter and assumes a constant rate of return; real returns vary and are not guaranteed. It is general information, not personal investment or tax advice.
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