SWP Calculator

Planning a steady income from your savings

A systematic withdrawal plan turns a lump sum into a monthly income while the remaining balance stays invested. It is popular with retirees and with anyone who wants regular cash without selling everything at once. The key question it answers is simple: how long will the money last at the withdrawal rate you choose?

Small changes make a big difference. Suppose you start with ₹50 lakh and the fund earns 8% a year. Withdrawing ₹30,000 a month is close to what the fund earns, so the balance can last for many decades. Raise the withdrawal to ₹40,000 and the money runs out in roughly 22 years. This calculator shows that turning point, so you can pick a withdrawal that keeps your principal working for as long as you need it.

Inflation is the hidden challenge. A fixed ₹30,000 buys less every year, so many people plan to increase withdrawals over time, which shortens how long the corpus lasts. Choose a modest return assumption, especially if the money is in a balanced or debt fund, and leave a margin for years when markets fall. Withdrawing heavily during a downturn forces you to sell units at low prices, which can damage the plan. Keeping a year or two of expenses in a safer fund helps you avoid that. Each withdrawal counts as a partial sale for tax purposes, so only the gain portion is taxed, which is often lighter than tax on interest income. Reviewing the plan once a year, and trimming withdrawals after a weak year, keeps the corpus healthy for longer.