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SWP Calculator
How long a corpus lasts when you withdraw a fixed amount every month.
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Result
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A systematic withdrawal plan takes a fixed sum out each month while the rest stays invested. It is how most retirement corpuses are actually spent.
The number that decides everything
Compare your monthly withdrawal with what the corpus earns in a month. Draw less and the capital keeps growing. Draw more and you are eating it, slowly at first and then not slowly at all.
The order of returns matters here
Withdrawing during a fall sells more units at a lower price, and that damage does not recover even if the market does. A year or two of planned withdrawals kept in a liquid fund protects against having to sell at the worst moment.
Tax
Each withdrawal is a redemption, so capital gains apply to the gain portion of every one. For equity funds held over a year that is 12.5% above the annual ₹1.25 lakh exemption — far lighter than the slab rate an interest-paying alternative would attract.
Frequently asked questions
How much can I withdraw without running out?
Anything up to what the corpus earns leaves the capital intact. The calculator shows that figure alongside your chosen withdrawal so the gap is visible. Drawing more than it earns means the capital is shrinking every month.
Is an SWP more tax-efficient than interest income?
Usually, yes. Only the gain portion of each withdrawal is taxed, and for equity funds held over a year that is 12.5% above the annual exemption. Interest from a deposit is taxed in full at your slab rate.
What is sequence-of-returns risk?
The risk that a market fall early in retirement forces you to sell more units at low prices, permanently reducing the corpus even if markets later recover. Keeping one to two years of withdrawals in a liquid fund is the standard defence.
Can I change the withdrawal amount later?
Yes. An SWP can be modified or stopped at any time. Reviewing it annually against the corpus and against inflation is sensible practice.