SWP Calculator
See how long a lump sum lasts if you take out a fixed amount every month while the rest stays invested. Every figure here is an illustration, not a promise of returns.
This is an illustration that assumes a steady return every month, which real markets never deliver. It ignores tax and exit loads. A market fall in the early years, while you keep withdrawing, can make the money run out sooner than shown.
How this is calculated
The yearly return you enter is turned into an equal monthly rate, so 8% a year compounds to exactly 8% over 12 months. Each month the balance grows at that rate, then the withdrawal comes out. If the balance cannot cover a withdrawal, the calculator shows the month it runs out.
A worked example
Illustration: 10 lakh rupees invested at 8% a year, for 10 years.
- Withdraw ₹6,000 a month: you take out ₹7.2 lakh, and about ₹10.78 lakh is still left, more than you started with.
- Withdraw ₹10,000 a month: you take out ₹12 lakh, and about ₹3.58 lakh is left.
- Withdraw ₹15,000 a month: the money runs out in month 88, after about ₹13.1 lakh in withdrawals.
The safer the withdrawal rate, the longer the money lasts. To build the lump sum first, see the SIP calculator.
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Questions people ask
What is an SWP (SWP kya hai)?
A systematic withdrawal plan takes a fixed amount out of your mutual fund every month, by selling just enough units. The rest stays invested and keeps earning, so it can work like a monthly income from a lump sum.
How long will my money last with an SWP?
It depends on how much you take out compared with what the fund earns. If you withdraw less than the fund grows, the money can last a long time. If you withdraw more, it runs out. In the illustration on this page, 10 lakh rupees at 8% a year lasts the full 10 years at 10,000 rupees a month, but runs out in about 7 years and 4 months at 15,000 a month.
Is SWP income taxed?
Each withdrawal is a sale of fund units, so only the gain part of each withdrawal is taxed as capital gains, not the whole amount. The rate depends on the type of fund and how long the units were held. Our guide to mutual fund taxation explains the rules; check the current ones before you plan.
Is the return in an SWP guaranteed?
No. A mutual fund's value moves up and down. This calculator assumes a steady return, but a fall in the market early on, while you keep withdrawing, can make the money run out sooner than shown.