Question 1

What is a Systematic Withdrawal Plan (SWP)?

Accepted Answer

An SWP is the mirror image of a SIP: instead of investing a fixed amount every month, you withdraw one from an existing lumpsum — commonly a mutual fund corpus — while the remaining balance keeps earning returns. It is widely used to convert a retirement corpus into a steady monthly income stream.

Question 2

How does this calculator decide if my corpus will last?

Accepted Answer

Each month, the calculator grows your remaining balance by the monthly-equivalent of your expected annual return, then subtracts your fixed withdrawal. If the balance ever hits zero before your target period ends, the calculator reports the month it happened so you can see exactly where the plan runs out.

Question 3

What withdrawal rate is considered "safe"?

Accepted Answer

There is no universal answer, but a commonly cited starting point from retirement-planning research is withdrawing around 3–4% of the initial corpus per year, adjusted for the fact that market-linked returns are not smooth or guaranteed. This calculator lets you stress-test different withdrawal amounts and expected returns rather than relying on any single rule of thumb.

Question 4

Can my SWP balance actually grow instead of shrink?

Accepted Answer

Yes — if your expected annual return is higher than your annual withdrawal rate (withdrawal ÷ corpus), the balance can grow even while you draw a monthly income from it. Try lowering the monthly withdrawal in the calculator above and watch the balance chart curve upward instead of down.

Question 5

Does this account for taxes on withdrawals?

Accepted Answer

No — this is a pre-tax projection of principal and growth only. Actual mutual fund withdrawals are typically taxed as capital gains (short- or long-term depending on the holding period and fund type), which reduces the amount you effectively keep. Check current tax rules for your jurisdiction and fund type separately.

Question 6

Should I assume a constant return rate for the whole period?

Accepted Answer

This calculator assumes one flat annual return for simplicity, which is a reasonable planning approximation but not how real markets behave — actual sequences of good and bad years, especially early bad years right after you start withdrawing, can deplete a corpus faster than a flat-rate model suggests. Treat the result as a baseline estimate and build in a margin of safety.

Question 7

How is SWP different from just leaving money in a savings account and spending it down?

Accepted Answer

A savings account typically earns little to no real return, so the balance falls roughly linearly with each withdrawal. An SWP keeps the remaining balance invested in a market-linked instrument, so it can keep growing between withdrawals — which is what allows a corpus to potentially outlast a simple straight-line drawdown, provided the return assumption holds.

Year	Total withdrawn	Remaining balance
1	₹180,000.00	₹1,979,250.12
2	₹360,000.00	₹1,956,778.02
3	₹540,000.00	₹1,932,440.74
4	₹720,000.00	₹1,906,083.47
5	₹900,000.00	₹1,877,538.57
6	₹1,080,000.00	₹1,846,624.46
7	₹1,260,000.00	₹1,813,144.49
8	₹1,440,000.00	₹1,776,885.70
9	₹1,620,000.00	₹1,737,617.44
10	₹1,800,000.00	₹1,695,089.94
11	₹1,980,000.00	₹1,649,032.68
12	₹2,160,000.00	₹1,599,152.69
13	₹2,340,000.00	₹1,545,132.68
14	₹2,520,000.00	₹1,486,629.04
15	₹2,700,000.00	₹1,423,269.63
16	₹2,880,000.00	₹1,354,651.42
17	₹3,060,000.00	₹1,280,337.93
18	₹3,240,000.00	₹1,199,856.45
19	₹3,420,000.00	₹1,112,695.06
20	₹3,600,000.00	₹1,018,299.31

Input	Value
Initial corpus	₹20,00,000
Monthly withdrawal	₹15,000
Expected return	8% p.a.
Balance after 20 years	Positive — see calculator

SWP (Systematic Withdrawal Plan) Calculator

How the balance is projected

₹20,00,000 corpus, ₹15,000 a month at 8%

Common questions