What is a Systematic Withdrawal Plan (SWP)?

An SWP allows you to withdraw a fixed amount of money regularly (usually monthly) from your mutual fund investments. It is the opposite of a SIP. It is commonly used by retirees to generate a steady pension-like income from their accumulated corpus.

How does an SWP work?

When you start an SWP, the mutual fund AMC sells a certain number of units from your accumulated corpus every month to generate the fixed withdrawal amount you requested. Meanwhile, your remaining units continue to grow at the market return rate.

Is SWP better than Dividend payouts?

Yes, SWP is generally considered more tax-efficient and reliable than IDCW (Dividend) options. Dividends are taxed according to your income tax slab, and the amount/frequency is not guaranteed. SWP allows you to set the exact amount you need, and only the capital gains portion of the withdrawal is taxed.

What is a safe withdrawal rate for SWP?

A common rule of thumb is the 4% to 6% annual withdrawal rate. For example, if you have a corpus of ₹1 Crore, withdrawing ₹4 Lakh to ₹6 Lakh per year (₹33k to ₹50k per month) is generally considered sustainable over long periods, assuming your corpus grows at 9-10% annually.

What happens if my withdrawal is higher than the returns?

If you withdraw more than what your corpus earns in returns, your principal amount will start depleting. Eventually, the entire corpus will reduce to zero. You can use our SWP Calculator to check exactly when your corpus will run out based on your expected rate of return.

SIP SWP CAGR Goal Lumpsum

SWP Calculator — Systematic Withdrawal Plan

Plan your monthly withdrawals from your mutual fund corpus. Calculate how much you can withdraw and how long your investment will last.

Total Corpus

₹

₹50 Lakh

Monthly Withdrawal

₹

₹30 Thousand

Expected Return Rate

Withdrawal Duration

Corpus₹50.00 L

Withdrawal₹30,000/mo

Duration20 years

Return rate10% p.a.

Also try:

SIP + Step-Up Calculator — grow wealth month by month CAGR Calculator — calculate effective growth rate

Total Withdrawn₹72,00,000₹72.00 L

Withdrawn

₹72,00,000

₹72.00 L

Rem. Corpus

₹1,38,59,303

₹1.39 Cr

Returns

+₹1,60,59,303

₹1.61 Cr

Your corpus survives the full duration with ₹1,38,59,303 remaining

Year-by-Year SWP Tracking

Starting corpus ₹50,00,000 with ₹30,000/mo withdrawals at 10% p.a.

Year	Yearly Withdrawn	Yearly Returns	End of Year Balance
Year 1	₹3,60,000	+₹5,06,598	₹51,46,598
Year 2	₹3,60,000	+₹5,21,949	₹53,08,547
Year 3	₹3,60,000	+₹5,38,907	₹54,87,455
Year 4	₹3,60,000	+₹5,57,641	₹56,85,096
Year 5	₹3,60,000	+₹5,78,337	₹59,03,433
Year 6	₹3,60,000	+₹6,01,199	₹61,44,632
Year 7	₹3,60,000	+₹6,26,456	₹64,11,088
Year 8	₹3,60,000	+₹6,54,358	₹67,05,446
Year 9	₹3,60,000	+₹6,85,181	₹70,30,627
Year 10	₹3,60,000	+₹7,19,231	₹73,89,858
Year 11	₹3,60,000	+₹7,56,848	₹77,86,706
Year 12	₹3,60,000	+₹7,98,403	₹82,25,109
Year 13	₹3,60,000	+₹8,44,309	₹87,09,418
Year 14	₹3,60,000	+₹8,95,023	₹92,44,441
Year 15	₹3,60,000	+₹9,51,047	₹98,35,487
Year 16	₹3,60,000	+₹10,12,937	₹1,04,88,424
Year 17	₹3,60,000	+₹10,81,308	₹1,12,09,732
Year 18	₹3,60,000	+₹11,56,838	₹1,20,06,571
Year 19	₹3,60,000	+₹12,40,278	₹1,28,86,849
Year 20Final	₹3,60,000	+₹13,32,454	₹1,38,59,303

How to Use This Calculator

Enter Total Corpus

The accumulated amount you have available for withdrawals. Range: ₹5 Lakh to ₹100 Crore.

Enter Monthly Withdrawal

The fixed amount you wish to withdraw every month.

Set Return Rate

The annual percentage return you expect on the remaining corpus.

Set Duration

The number of years you want to withdraw for (1–40 years).

Check Longevity

The calculator instantly shows if your corpus lasts the full duration or depletes early.

Review Year-by-Year Table

See your end-of-year balance, yearly withdrawals, and returns earned.

Frequently Asked Questions

SWP Calculation Methodology

The Concept

Remaining = (Previous Bal + Monthly Return) - Withdrawal

Unlike simple interest, the corpus continuously earns returns while you withdraw.

If Monthly Return > Withdrawal, the corpus grows indefinitely.

If Monthly Return < Withdrawal, the corpus eventually depletes.

Worked Example (Month 1)

Starting Corpus₹50,00,000

Return (e.g. 12% p.a. = 1% per month)+ ₹50,000

Withdrawal- ₹30,000

End of Month 1 Balance₹50,20,000