SWP Calculator with Inflation
Enter what you have invested and what you want to withdraw every month. You get how long the money lasts when the withdrawal rises with inflation every year, and the most you can take out without running short.
By Hardik Vegad, founder of WealthGamma · Last updated
Your money lasts
17years 1month
It runs out in year 18. To last all 20 years, start at ₹26,463 a month or less.
Total you withdraw
₹1,02,93,265
Left at the end
₹0
Last monthly withdrawal
₹80,783
Most you can withdraw
₹26,463a month
Your balance and withdrawals, year by year
- Balance
- Withdrawn so far
Year-by-year tableShowHide
| Year | Monthly withdrawal | Withdrawn so far | Balance |
|---|---|---|---|
| 1 | ₹30,000 | ₹3,60,000 | ₹50,41,500 |
| 2 | ₹31,800 | ₹7,41,600 | ₹50,64,034 |
| 3 | ₹33,708 | ₹11,46,096 | ₹50,64,684 |
| 4 | ₹35,730 | ₹15,74,862 | ₹50,40,209 |
| 5 | ₹37,874 | ₹20,29,353 | ₹49,87,011 |
| 6 | ₹40,147 | ₹25,11,115 | ₹49,01,106 |
| 7 | ₹42,556 | ₹30,21,782 | ₹47,78,082 |
| 8 | ₹45,109 | ₹35,63,088 | ₹46,13,058 |
| 9 | ₹47,815 | ₹41,36,874 | ₹44,00,641 |
| 10 | ₹50,684 | ₹47,45,086 | ₹41,34,875 |
| 11 | ₹53,725 | ₹53,89,791 | ₹38,09,190 |
| 12 | ₹56,949 | ₹60,73,179 | ₹34,16,341 |
| 13 | ₹60,366 | ₹67,97,570 | ₹29,48,345 |
| 14 | ₹63,988 | ₹75,65,424 | ₹23,96,412 |
| 15 | ₹67,827 | ₹83,79,349 | ₹17,50,870 |
| 16 | ₹71,897 | ₹92,42,110 | ₹10,01,082 |
| 17 | ₹76,211 | ₹1,01,56,637 | ₹1,35,356 |
| 18 | ₹80,783 | ₹1,02,93,265 | ₹0 |
| 19 | ₹0 | ₹1,02,93,265 | ₹0 |
| 20 | ₹0 | ₹1,02,93,265 | ₹0 |
What is an SWP?
A systematic withdrawal plan (SWP) sells a fixed rupee amount of your mutual fund units every month and pays it into your bank account. It is a SIP in reverse: money comes out on a set date, and whatever is left stays invested and keeps earning.
People use it to turn a lump of savings into a monthly income, most often after they stop working. The question that matters is simple: will the money last as long as you do?
How long will ₹1 crore last with an SWP?
At 8% a year, ₹1 crore lasts 21 years 5 months if you start at ₹50,000 a month and raise it 6% every year. The more you take out, the faster it goes:
| You start at | First year, of ₹1 crore | Rising 6% a year | Never rising |
|---|---|---|---|
| ₹50,000 a month | 6% | 21 years 5 months | More than 50 years |
| ₹75,000 a month | 9% | 13 years 2 months | 27 years 6 months |
| ₹1,00,000 a month | 12% | 9 years 6 months | 13 years 9 months |
₹1 crore invested, 8% a year. The balance grows every month, then the withdrawal comes out.
A fixed ₹50,000 a month never runs out, because it is less than what ₹1 crore earns at 8%. But a fixed amount buys less every year, which is why the rising column is the honest one.
How much can I withdraw every month?
From ₹1 crore, about ₹38,909 a month if the money has to last 30 years, at 8% a year with the withdrawal rising 6% every year. That is 4.7% of the starting amount in the first year. For other amounts:
| You have | To last 20 years | To last 30 years |
|---|---|---|
| ₹25L | ₹13,232 a month | ₹9,727 a month |
| ₹50L | ₹26,463 a month | ₹19,454 a month |
| ₹1 Cr | ₹52,926 a month | ₹38,909 a month |
| ₹2 Cr | ₹1,05,853 a month | ₹77,817 a month |
First-year monthly withdrawal. It rises 6% every year and the balance reaches ₹0 at the end of the period.
These amounts spend everything by the last month. If you want something left over, or a cushion for a bad market, withdraw less. The calculator shows this number for your own inputs as "Most you can withdraw".
Why does inflation matter in an SWP?
Because your bills rise every year and a fixed withdrawal does not. At 6% inflation, ₹30,000 a month buys only what ₹9,354 buys today after 20 years. To live the same way, you would need ₹96,214 a month by then.
That changes the answer a lot. ₹50 lakh at 8% with a fixed ₹30,000 a month still has ₹69.63L left after 20 years. Raise the withdrawal 6% every year and the same money runs out in 17 years 1 month. Most SWP calculators show only the first number.
How is an SWP calculated?
Month by month: the balance earns one month of return, then the withdrawal comes out. Every 12 months the withdrawal goes up by the inflation rate.
Monthly return = Yearly return ÷ 12
Balance = Balance × (1 + Monthly return) − Withdrawal
Withdrawal next year = Withdrawal × (1 + Inflation)
For ₹50 lakh at 8% with ₹30,000 a month: the first month earns ₹33,333, you take out ₹30,000, and ₹50,03,333 is left. The balance grows at first. By year 4 the rising withdrawal is larger than what the money earns, and the balance starts to fall.
How is an SWP taxed?
Only the gain inside each withdrawal is taxed, not the whole amount. Every SWP payment is a sale of units, and the oldest units are sold first. If you bought units at ₹100 and they are worth ₹150 now, one third of a ₹30,000 withdrawal is gain (₹10,000) and the rest is your own money coming back.
- Equity funds, units held over a year. Gains are taxed at 12.5%, and the first ₹1.25 lakh of such gains each year is tax free.
- Equity funds, units held under a year. Gains are taxed at 20%.
- Debt funds bought after 1 April 2023. Gains are added to your income and taxed at your slab rate, however long you held them.
So wait a year after investing before you start an SWP from an equity fund, if you can. You skip the 20% rate, and most funds stop charging an exit load by then.
Is an SWP better than the dividend (IDCW) option?
For a steady monthly income, usually yes. With an SWP you pick the amount and the date. With the IDCW option the fund decides how much to pay and when, and it can skip a payout.
| SWP | IDCW (dividend) | |
|---|---|---|
| Amount | You choose | The fund chooses |
| Every month? | Yes, on your date | Not promised |
| Tax | Only on the gain part | On the full payout, at your slab rate |
| Can it rise with prices? | Yes, change it any time | No |
Both take money out of the same fund. An IDCW payout is not extra income; the fund's value drops by what it pays.
What does an SWP calculator not account for?
It assumes the same return every year, and real markets don't work that way. It leaves out:
- The order of returns. A crash in the first few years hurts far more than one later, because you sell more units at low prices to get the same rupees.
- Tax. The gain part of each withdrawal is taxed, so what reaches you is a little less.
- Exit loads. Many equity funds charge 1% on units sold within a year of buying.
A common fix is to keep two or three years of withdrawals in a liquid or debt fund and run the SWP from there, so a bad year in equity doesn't force a sale.
Still building the amount? The SIP calculator and the lumpsum calculator show what your savings will grow to, and the FIRE calculator shows how much you need before you can live off it.
Frequently asked questions
What is an SWP in a mutual fund?
A systematic withdrawal plan (SWP) sells a fixed rupee amount of your mutual fund units every month and pays it into your bank account. The rest stays invested and keeps earning.
How long will ₹1 crore last with an SWP?
At 8% a year, ₹1 crore lasts 21 years 5 months if you start at ₹50,000 a month and raise it 6% every year. Start at ₹1 lakh a month and it lasts 9 years 6 months.
How much can I withdraw every month from ₹50 lakh?
About ₹26,463 a month to make it last 20 years, or ₹19,454 a month for 30 years, at 8% a year with the withdrawal rising 6% every year.
Why should an SWP rise with inflation?
Because prices rise. At 6% inflation, ₹30,000 buys only what ₹9,354 buys today after 20 years. A withdrawal that never rises means a smaller life every year.
Is SWP income taxable?
Only the gain inside each withdrawal is taxed, not the whole amount. For equity funds held over a year, gains are taxed at 12.5% above ₹1.25 lakh a year. Under a year, the rate is 20%.
Is an SWP better than the dividend (IDCW) option?
Usually, yes. With an SWP you choose the amount and the date, and only the gain part is taxed. An IDCW payout is decided by the fund, can be skipped, and is taxed in full at your slab rate.
Can I change or stop an SWP?
Yes. You can change the amount, pause it or stop it at any time, and the remaining units stay invested. Many investors raise the amount once a year to keep up with prices.