Systematic Withdrawal Plan & Retirement Income
Plan your monthly cash flow after retirement. Find out how long your accumulated wealth will last or how much you can withdraw monthly without depleting your corpus.
Calculate your regular withdrawal benefits.
Usually lower than SIP (Equity) as retirees prefer safety.
Total Withdrawal
₹0
Final Balance
₹0
Status
Sustainable
Balance Projection
Want to reach this corpus first? Use our Reverse SIP Planner to calculate your investment phase.
Master your retirement income strategy.
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount of money from your mutual fund investments at regular intervals. While SIP is used for building wealth, SWP is used for generating a pension-like monthly income after retirement.
In an FD, you get interest, and the principal remains blocked. In an SWP, you withdraw both returns and a part of the principal. SWP is significantly more tax-efficient because you only pay tax on the 'gains' portion of your withdrawal, not the full amount.
Set Corpus: Enter the total amount you have already invested in a mutual fund or any other growing asset.
Withdrawal Amount: Set the amount you need in your bank account every month for expenses.
Return Rate: Input the annual return you expect from the fund (Retirees usually expect 7-9% for stability).
Inflation Toggle: Switch this on to see how your withdrawals must increase over time to keep up with rising milk and fuel prices.
Every month, the monthly withdrawal is subtracted from your current balance, and the remaining amount grows by the expected return rate.
Monthly Balance = (Previous Balance - Withdrawal) × (1 + i)
Where i = (Annual Return Rate / 12) / 100.
Globally, the 4% Rule is considered safe. This means if you withdraw 4% of your total corpus annually (e.g., ₹4 Lakhs on a ₹1 Crore corpus), your money has a very high chance of lasting over 30 years.
Yes! If your annual expected return (e.g., 10%) is higher than your annual withdrawal rate (e.g., 6%), your principal balance will actually continue to grow while providing you a monthly income.
Retirement usually lasts 20-30 years. ₹50,000 today will not buy the same groceries 20 years from now. By toggling "Inflation", the calculator increases your withdrawal amount each year, ensuring your lifestyle doesn't degrade over time.
Yes, SWP is highly tax-efficient. Unlike FD interest which is taxed at your income slab rate, SWP withdrawals are treated as capital redemptions. You only pay Long Term Capital Gains (LTCG) tax on the profit portion, with a ₹1.25 Lakh tax-free limit per year.
Absolutely. Mutual fund SWPs are very flexible. You can increase, decrease, or even stop your monthly withdrawals at any time without paying the heavy exit loads or penalties often found in traditional insurance pension plans.
No, it depends on the market performance of the underlying mutual fund. If the market performs poorly for many years and you continue high withdrawals, your principal can deplete faster than expected. Use this calculator to simulate a conservative return rate (6-8%) for safer planning.