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SWP Calculator

Find out how long your mutual fund corpus lasts with a monthly SWP - or how much you can safely withdraw without depleting your retirement savings.

SWP Details
SWP Guide

Retirement Income Planning

The 4% Rule

Withdraw no more than 4% of corpus per year (₹33,333/month on ₹1 crore) to ensure the corpus lasts 30+ years in most market scenarios.

Return > Withdrawal

If your corpus returns more than you withdraw each month, the corpus grows. A ₹1 crore corpus at 8% earns ₹66,667/month - allowing perpetual ₹60,000/month withdrawals.

Inflation Buffer

Build a 6–8% return assumption into your SWP - at least 3–4% above inflation - to ensure withdrawals retain real purchasing power over a 20–30 year retirement.

FAQ

Frequently Asked Questions

SWP is the reverse of SIP - you withdraw a fixed amount monthly from your mutual fund corpus while the remaining balance continues earning returns. Widely used by retirees for regular income from accumulated wealth.

It depends on corpus size, withdrawal amount and return rate. If returns exceed your withdrawal rate, the corpus lasts indefinitely. A ₹1 crore corpus at 8% earns ₹66,667/month - allowing perpetual ₹60,000/month withdrawals. Higher withdrawals lead to gradual depletion.

The 4% rule: withdraw no more than 4%/year of corpus (~₹33,333/month on ₹1 crore). In India with 7–9% fund returns, 3.5–4.5% annual withdrawal is commonly recommended by financial planners for a 30-year retirement.

Yes. Each SWP redemption from equity funds attracts capital gains tax: STCG (held <1yr) at 15%, LTCG above ₹1 lakh/yr at 10%. Debt fund gains are added to income and taxed at slab rate. SWP from growth plans is more tax-efficient than dividend options.

Log in to your AMC website or platform (Groww, Zerodha Coin, etc.), select your fund, choose SWP, enter monthly amount, start date and duration. Units are redeemed at prevailing NAV each month. You can modify or stop any time.

Balanced advantage funds (dynamic asset allocation) and conservative hybrid funds are popular for retirement SWP - moderate growth with lower volatility. Large-cap equity works for long horizons (10+ years) where the corpus can absorb market dips.