Set 5-6% to match inflation. Withdrawals grow each year.
📊 SWP Result
Corpus lasts for
— years
—
₹0
Total Withdrawn
₹0
Returns Earned
₹0
Safe Monthly (perpetual)
₹0
LTCG Tax (12.5%)
Starting corpus—
Monthly withdrawal—
Annual return rate—
Corpus depleted on—
Final corpus value—
📉 Corpus Over Time
Calculate to see chart
SWP (Systematic Withdrawal Plan) — Complete Guide
SWP is the opposite of SIP. Instead of putting money IN every month, you take money OUT. You keep the rest invested, earning returns. If your return rate exceeds your withdrawal rate, your corpus can last forever — this is the foundation of retirement income planning.
The 4% Rule: Withdraw 4% of your corpus per year and it should last 30+ years (historical data). For ₹1 Crore corpus → safe withdrawal = ₹4L/year = ₹33,333/month. This rule was created for US markets but works similarly for Indian equity-balanced funds.
SWP vs FD vs Dividend: SWP is more tax-efficient than FD interest (which is fully taxable). SWP gains are LTCG taxed at 12.5% after ₹1.25L exemption. Dividend income is fully taxable. SWP from equity mutual funds is the most tax-efficient monthly income source for retirees in India.
Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund every month. The remaining corpus stays invested and continues to grow. It's the opposite of SIP — ideal for retirement income planning or regular cash flow from a lump sum investment.
How long will my SWP corpus last?▼
Depends on corpus size, withdrawal amount, and fund return. Example: ₹50 lakh corpus, ₹25,000 monthly withdrawal at 12% return = lasts 32+ years. If withdrawal exceeds returns, corpus depletes. Use our calculator to find the exact duration for your numbers.
Is SWP better than FD for retirement income?▼
SWP in balanced/debt funds typically gives better post-tax returns than FD for retirement income. SWP withdrawals are partially return of capital (only gain portion taxed), whereas FD interest is fully taxable. For ₹1 crore corpus, SWP can give ₹40,000-50,000/month vs FD's ₹58,000/month pre-tax (but FD is taxable, SWP is tax-efficient).