SWP calculator
A systematic withdrawal plan (SWP) pays you a fixed amount from a mutual fund every month while the rest stays invested. Enter the amount, the monthly withdrawal and an expected return to see how long the money lasts.
Rules for FY 2026-27 · Checked 24 October 2026
69.63 lakh, after taking out ₹72,00,000.
- You withdraw 7.2% of the starting amount in the first year.
- The money left invested earns ₹91.63L in returns while you withdraw.
- Withdraw up to ₹33,333 a month and the amount invested never shrinks, if the return holds.
- Amount invested
- ₹50,00,000
- Returns earned
- ₹91,63,401
- Total withdrawn
- − ₹72,00,000
- Left after 20 years
- ₹69,63,401
Each withdrawal sells units. Only the gain on the units sold is taxed, as capital gains, not the whole amount you take out.
Year-by-year table
| Year | Withdrawn so far | Returns so far | Left |
|---|---|---|---|
| 1 | ₹3,60,000 | ₹4,01,500 | ₹50,41,500 |
| 2 | ₹7,20,000 | ₹8,06,444 | ₹50,86,444 |
| 3 | ₹10,80,000 | ₹12,15,119 | ₹51,35,119 |
| 4 | ₹14,40,000 | ₹16,27,833 | ₹51,87,833 |
| 5 | ₹18,00,000 | ₹20,44,923 | ₹52,44,923 |
| 6 | ₹21,60,000 | ₹24,66,751 | ₹53,06,751 |
| 7 | ₹25,20,000 | ₹28,93,711 | ₹53,73,711 |
| 8 | ₹28,80,000 | ₹33,26,229 | ₹54,46,229 |
| 9 | ₹32,40,000 | ₹37,64,765 | ₹55,24,765 |
| 10 | ₹36,00,000 | ₹42,09,820 | ₹56,09,820 |
| 11 | ₹39,60,000 | ₹46,61,935 | ₹57,01,935 |
| 12 | ₹43,20,000 | ₹51,21,695 | ₹58,01,695 |
| 13 | ₹46,80,000 | ₹55,89,735 | ₹59,09,735 |
| 14 | ₹50,40,000 | ₹60,66,742 | ₹60,26,742 |
| 15 | ₹54,00,000 | ₹65,53,461 | ₹61,53,461 |
| 16 | ₹57,60,000 | ₹70,50,697 | ₹62,90,697 |
| 17 | ₹61,20,000 | ₹75,59,324 | ₹64,39,324 |
| 18 | ₹64,80,000 | ₹80,80,287 | ₹66,00,287 |
| 19 | ₹68,40,000 | ₹86,14,610 | ₹67,74,610 |
| 20 | ₹72,00,000 | ₹91,63,401 | ₹69,63,401 |
How the calculator works
Each month the amount still invested earns one month of the expected return, and then the withdrawal is taken out. If the withdrawal is more than the fund earns, the amount invested shrinks a little each month, and faster as time goes on.
For example, ₹50 lakh at 8% with ₹30,000 a month taken out still has about ₹69.6 lakh left after 20 years, after paying out ₹72 lakh. Raise the withdrawal to ₹40,000 and the money lasts 22 years 6 months.
Prices rise, so a fixed withdrawal buys less every year. Raising the ₹30,000 by 5% each year keeps up with that, but then the same ₹50 lakh lasts 18 years 11 months. Use “Raise the withdrawal each year” to try it.
Mutual fund returns are not guaranteed, and a fall in the market early on, while you are withdrawing, shortens how long the money lasts. Use a cautious return.
How SWP withdrawals are taxed
Each withdrawal is a sale of units, and the oldest units are sold first. Only the gain on the units sold is taxed, not the whole amount you take out. In the early years most of each withdrawal is your own money coming back, so the tax is small.
- Equity funds held over 1 year: gains above ₹1.25 lakh a year are taxed at 12.5%.
- Equity funds sold within 1 year: gains taxed at 20%.
- Debt funds bought after 1 April 2023: gains taxed at your slab rate.
Work out the tax on a sale with the capital gains calculator.
SWP or a monthly income scheme?
An SWP can pay more than a fixed deposit or the Post Office Monthly Income Scheme, and is often taxed less, but the amount left is not guaranteed. The post office scheme pays a fixed amount and returns your deposit after 5 years.
Frequently asked questions
How much can I withdraw so the money never runs out?
Up to what the fund earns: about the amount invested × yearly return ÷ 12. At 8%, that is about ₹33,333 a month on ₹50 lakh. Taking out less leaves room for bad years.
Which funds suit an SWP?
Many people use hybrid or debt funds for steady withdrawals, and keep long-term money in equity. A lower-risk fund makes it less likely that a market fall eats into the amount you depend on.
Is SWP better than a dividend option?
An SWP gives you a fixed amount on a date you choose, and only the gain in each withdrawal is taxed. Dividends (IDCW) are paid when the fund decides and are fully taxed at your slab rate.
Can I stop an SWP?
Yes, at any time, through the fund house or the platform you invest with. To change the amount, stop it and set up a new one.
Sources: AMFI (Association of Mutual Funds in India), Income Tax Department