What is SWP? (Systematic Withdrawal Plan Explained for Retirees)
A Systematic Withdrawal Plan lets you withdraw a fixed amount from a lump‑sum investment every month, while the remaining corpus continues to earn returns. It’s a popular tool for retirees who want regular income without locking money away in a fixed deposit. Our SWP Calculator shows how long your money will last and maps out the year‑wise balance.
SWP vs FD Interest: A Key Difference
In an FD, you earn interest but the principal remains untouched (unless you break it). With an SWP from a mutual fund or other investment, you’re actually selling units every month. The unit sales plus any capital gains are paid out. If the portfolio’s returns are high enough, the corpus can even grow despite withdrawals. However, if the withdrawal rate is too aggressive or the market underperforms, the corpus depletes faster. Our calculator factors in both the withdrawal and the expected return to give a realistic timeline.
Step‑by‑Step: Plan Your Withdrawals
- Use the SWP Calculator. Enter your total corpus, the monthly withdrawal you need, and the expected annual return.
- Click “Calculate.” The tool shows how many years and months the corpus will last, the final balance, and a year‑wise depletion table.
- If the monthly return exceeds your withdrawal, the calculator will tell you that the corpus never depletes—an ideal scenario.
Understanding Corpus Depletion
Every month, the withdrawal is deducted first; then the remaining amount earns returns. In a down market, you’re forced to sell more units to get the same rupees, accelerating depletion. That’s why SWPs from equity funds carry higher risk than from debt funds. The SWP Calculator assumes a constant return, so use a conservative estimate to be safe. For comparing returns, try our CAGR Calculator to see how your corpus might have grown historically.
Frequently Asked Questions
Is SWP taxable?
Yes, the capital gains portion of each withdrawal is taxed. Short‑term and long‑term capital gains rules apply depending on the holding period.
Can I start an SWP from any mutual fund?
Most open‑ended funds allow SWP. You set the amount and frequency; redemptions happen automatically.
What if I need to withdraw a lump sum later?
You can stop the SWP anytime and redeem the remaining balance. There are no exit loads on SWP redemptions in most funds.
Does the calculator consider inflation?
No, it uses a fixed withdrawal amount. For inflation‑adjusted planning, you’d need to increase withdrawals manually.
Is it free and private?
Yes, the calculator runs entirely in your browser; no personal data is collected.
Disclaimer: This is general information and not financial advice. SWP involves market risk; past performance does not guarantee future results.
Plan Your SWP Now