SWP Calculator
See how long your money lasts when you take a regular income from it, and the most you can safely withdraw.
To keep up with inflation. India's long-run average is about 5–6%.
The money grows untouched first.
FD interest is taxed at this rate.
SWP vs FD for income
| Over 10 years | SWP | FD |
|---|
Year-by-year balance and chart
| Year | Start | Taken out | Growth | End | Tax ≈ |
|---|
How your SWP is worked out
Take the withdrawal out, let the rest grow for the month, and repeat.
- 1
Monthly return
8% ÷ 12= 0.6667%
- 2
Take it out first
Start ₹10,00,000− ₹8,000= ₹9,92,000
- 3
The rest grows
₹9,92,000× 1.006667= ₹9,98,613
- 4
Repeat 120 times
Taken ₹9,60,000Left ₹7,46,315
Read more: the formula, a worked example, tax and SWP vs FD
An SWP (systematic withdrawal plan) takes a fixed amount out of your mutual fund every month, quarter or year, and pays it to your bank. The money left in the fund keeps earning, so if you take out less than it earns the balance can last for a very long time. It is the opposite of a SIP, where you put money in each month, and is often used after a lump sum investment or at retirement.
The formula
balance after n months = C × (1 + i)^n − W × (1 + i) × ((1 + i)^n − 1) ÷ i
i = yearly return ÷ 12 ÷ 100
most you can take for n months = C × (1 + i)^n × i ÷ ((1 + i) × ((1 + i)^n − 1))
forever = C × i ÷ (1 + i)
Here C is the amount you start with and W is the withdrawal each month. Each withdrawal is taken at the start of the month and the rest grows for that month. For quarterly or yearly withdrawals, i is the monthly return compounded over that period, for example (1 + 0.6667%)3 − 1 = 2.01% a quarter at 8% a year. With a yearly step-up the calculator works month by month instead of using the formula.
Worked example
₹10,00,000 at 8% a year, taking ₹8,000 a month for 10 years: i = 0.08 ÷ 12 = 0.0066667 and n = 120, so (1 + i)120 = 2.219640. The balance is 10,00,000 × 2.219640 − 8,000 × 1.0066667 × (1.219640 ÷ 0.0066667) = 22,19,640 − 14,73,325 = ₹7,46,315. You take out 8,000 × 120 = ₹9,60,000 and still have most of your money left.
At that rate the money lasts 22 years (264 full monthly withdrawals). To use it all up in exactly 10 years you could take ₹12,052 a month. To never touch the starting amount, take no more than 10,00,000 × 0.0066667 ÷ 1.0066667 = ₹6,623 a month, which is the return alone.
Tax on SWP withdrawals in India
Each withdrawal sells some fund units. Only the gain on those units is taxed, not the whole withdrawal. Units are sold oldest first (FIFO). With a single lump sum, every unit cost the same, so the gain share of a withdrawal is 1 − (price you paid ÷ price today). In the example, the first withdrawal is nearly all your own money, and by year 10 more than half of each withdrawal is gain. Over the 10 years about 31% (₹2,96,232) of what you take out is gain.
| Equity fund units held | Tax on the gain |
|---|---|
| Over 12 months (long-term) | 12.5% on gains above ₹1.25 lakh in a year |
| 12 months or less (short-term) | 20% |
In the example the long-term gain in any one year stays under ₹1.25 lakh, so only the short-term gain on the first 13 withdrawals (₹4,034) is taxed: 4,034 × 20% = ₹807, before 4% cess. The calculator treats each plan year as one financial year and assumes you have no other equity gains. This is approximate; your fund statement shows exact capital gains. Debt fund gains are taxed at your slab rate.
SWP vs FD
A 7% FD on ₹10,00,000 pays ₹70,000 of interest a year, ₹7,00,000 over 10 years. All of it is taxed at your slab: at 30% that is ₹2,10,000. The SWP above pays out ₹9,60,000 with about ₹807 of tax and still leaves ₹7,46,315. The FD gives back your ₹10,00,000 at the end and its interest is fixed; fund returns are not, so this is an illustration only. Cess, surcharge and TDS are left out.
Mutual fund returns are not guaranteed and vary from year to year; a bad year early on hurts an SWP more than the same year later. This calculator assumes a steady average return, so treat the result as an illustration, not a promise. It is not investment advice. Tax rates are from the Finance (No. 2) Act, 2024, unchanged for FY 2026-27; checked on 9 October 2026.
Common questions
How does an SWP calculator work?
It takes your starting amount, takes out your withdrawal at the start of each month, and lets the rest grow at the expected return ÷ 12 for that month, over and over. At the end it shows what is left, the total you took out and how long the money would last. ₹10 lakh at 8% with ₹8,000 a month leaves about ₹7,46,315 after 10 years.
How much monthly income can I get from ₹10 lakh?
At an 8% yearly return, about ₹6,623 a month can be taken forever, because that is roughly what the money earns, so the balance never falls. If you are happy to use up the whole amount over 10 years, you could take about ₹12,052 a month. Returns are not guaranteed, so leave a margin.
How long will my money last with an SWP?
It depends on how much you take compared with what the money earns. ₹8,000 a month from ₹10 lakh at 8% a year lasts 22 years, because the fund keeps earning while you withdraw. Take less than about ₹6,623 a month and it should never run out at that return. A yearly step-up for inflation makes it run out sooner.
How is SWP income taxed in India?
Only the gain part of each withdrawal is taxed, not the whole amount. For equity funds, units held over 12 months are taxed at 12.5% on gains above ₹1.25 lakh in a year, and units held 12 months or less at 20%. In the example only about 31% of the money taken out over 10 years is gain. Your fund statement shows the exact capital gains.
Is SWP better than an FD for monthly income?
FD interest is fully taxed at your slab rate, while an SWP is taxed only on the gain part of each withdrawal. In the example, a 7% FD on ₹10 lakh pays ₹7,00,000 of interest over 10 years and costs ₹2,10,000 in tax at a 30% slab. But FD interest is fixed and the principal is safe, while fund returns can go up and down.
Related calculators
Made by Zulu Calculator, part of AlphaZulu LLC. Formulas are shown in full and rule figures are checked against official sources; see how we build calculators.