SWP Calculator — Systematic Withdrawal Plan
An SWP pays you a fixed amount every month while the rest of your corpus stays invested. Find out how long your money lasts — and the withdrawal level at which it never runs out.
How the SWP simulation works
Each month the remaining balance grows at the monthly rate, then the withdrawal is deducted. The simulation counts months until the balance hits zero (capped at 50 years).
r = annual return % W = monthly withdrawal
₹50 lakh corpus at 8% — how long it lasts
| Monthly withdrawal | Corpus lasts |
|---|---|
| ₹25,000 | 50+ years (never depletes) |
| ₹30,000 | 50+ years (never depletes) |
| ₹35,000 | 38 years 3 months |
| ₹40,000 | 22 years 6 months |
| ₹50,000 | 13 years 10 months |
The break-even is the corpus's monthly growth: ₹50,00,000 × 8% ÷ 12 ≈ ₹33,333. Withdraw less than that and the balance keeps growing; withdraw more and you start consuming principal — and depletion accelerates.
Frequently asked questions
What is a Systematic Withdrawal Plan (SWP)?
An SWP redeems a fixed amount from your mutual fund corpus every month while the remaining balance stays invested and keeps growing. It is the mirror image of a SIP and is widely used to draw a monthly income in retirement.
How long will 50 lakh last with a 30,000 monthly withdrawal?
At an assumed 8% annual return, a ₹50 lakh corpus generates about ₹33,333 of growth per month — more than the ₹30,000 withdrawal — so the corpus never depletes and lasts 50+ years. At ₹40,000 a month it lasts about 22 years 6 months, and at ₹50,000 about 13 years 10 months.
What is a safe SWP withdrawal rate?
If your monthly withdrawal stays at or below the corpus's average monthly growth (corpus × annual return ÷ 12), the balance is sustained indefinitely in this model. For ₹50 lakh at 8%, that break-even is about ₹33,333 per month. Withdrawing more starts consuming principal.
Is SWP better than a fixed deposit for monthly income?
SWP from a mutual fund offers market-linked growth and flexible withdrawals, but returns are not guaranteed. An FD pays a fixed, guaranteed rate. Many retirees combine both — an FD for essential expenses and an SWP for growth. Compare both in the FinCalix app.
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