SWP calculator: how long your corpus lasts, and the tax on every withdrawal
A systematic withdrawal plan (SWP) pays you a fixed sum from a mutual fund every month or quarter by redeeming units, while the rest of the money stays invested. This SWP calculator answers the two questions people actually have: how long will my corpus last at the withdrawal I want, and what is the most I can withdraw if it has to last a set number of years.
It also estimates the capital-gains tax on each withdrawal. Units are redeemed first-in, first-out, so the calculator tracks how much of every payout is gain, whether it is short- or long-term, and the tax for equity, debt and other funds under the rules in force in October 2026. You can raise the withdrawal every year for inflation, or take a percentage of the value instead.
Returns are assumed constant, which real markets never are, so treat the results as estimates rather than investment or tax advice.
How to use the SWP Calculator
- Choose How long it lasts or Maximum withdrawal.
- Enter the Corpus today, how often you withdraw and either the amount (with an optional yearly raise) or a percentage of the value.
- Set the Expected return and the number of years — the years to show, or how long the money must last.
- Under Tax on each withdrawal, pick the fund type and slab rate, and say how the corpus was built and what it cost.
- Read the result and the schedule. Switch between Each withdrawal and By year, and download either view as CSV.
SWP Calculator features
Both directions
Duration for a chosen withdrawal, or the largest starting withdrawal that lasts exactly your period and leaves any amount you want behind.
Inflation-proof withdrawals
Raise the payout by a set percentage each year, or withdraw a percentage of the current value so the money never fully runs out.
FIFO tax, payout by payout
Every redemption uses the oldest units first, so SIP-built portfolios get the right mix of short- and long-term gains.
Equity, debt and other funds
The ₹1.25 lakh yearly exemption, 20% and 12.5% rates, and slab-rate debt funds — all editable.
Full schedule
Every withdrawal with its gain, tax and value left, plus a yearly view.
The SWP formula and a worked example
Each month the fund grows at the monthly equivalent of your annual return, i = (1 + r)1/12 − 1, and then the withdrawal is paid: value = previous value × (1 + i) − withdrawal. With a level withdrawal W from a corpus V, the money lasts n = ln(W ÷ (W − V × i)) ÷ ln(1 + i) months, and the largest withdrawal that empties it in exactly n months is W = V × i × (1 + i)n ÷ ((1 + i)n − 1).
Example: ₹10,00,000 earning 12% a year with ₹10,000 withdrawn every month. The monthly rate is 0.949%, so n = ln(10,000 ÷ 511.21) ÷ 0.00944 ≈ 314.9: you get 314 full withdrawals and a final ₹8,616 — the corpus lasts 26 years 3 months, and after 20 years ₹5,34,182 is still invested. To use the same ₹10 lakh up in exactly 10 years you could withdraw ₹13,995 a month, or start at ₹11,640 and raise it 5% every year.
The opening example — ₹50 lakh, ₹30,000 a month rising 5% a year, 9% returns — lasts 20 years 5 months.
How each SWP withdrawal is taxed
An SWP payout is a redemption, not income. Only the gain inside it is taxed, and tax is charged when you file your return — no TDS is deducted for resident investors, because income from units that is in the nature of capital gains is excluded from TDS (section 393(4) of the Income-tax Act, 2025, Table Sl. No. 4).
Example: a debt fund now worth ₹10 lakh that cost ₹6 lakh three years ago. The first ₹10,000 withdrawal, a month later at 12%, contains a gain of ₹4,056; the twelve withdrawals in year one contain ₹52,251 of gains, taxed at a 30% slab plus cess: ₹16,302. In an equity fund the same gains are long-term and under the ₹1.25 lakh yearly exemption, so the tax is nil.
| Fund type | Long-term after | Long-term rate | Short-term rate |
|---|---|---|---|
| Equity-oriented (65%+ Indian shares) | 12 months | 12.5% above ₹1.25 lakh a year | 20% |
| Specified debt fund (bought from 1 April 2023) | Never | — | Slab rate |
| Other (gold, international, some hybrids) | 24 months | 12.5% | Slab rate |
Choosing a sustainable withdrawal rate
- A yearly raise for inflation shortens the life of a corpus a lot — compare the two modes to see the trade-off.
- Poor years early in an SWP do more damage than the same years later, so many retirees keep one to two years of withdrawals in a liquid fund and refill it with an STP.
- Withdrawing a fixed percentage of the value never empties the fund, but the payout falls when markets do.
- Build the corpus first with the SIP calculator, check the target with the retirement calculator, and see what a payout will buy later with the inflation calculator.
SWP Calculator FAQ
How does an SWP calculator work?
It grows the corpus at your expected return each month and subtracts each withdrawal, showing the balance after every payout and when it runs out. This SWP calculator also finds the largest withdrawal that lasts a chosen period.
How much can I withdraw every month from ₹1 crore?
At an assumed 9% a year, about ₹81,500 a month uses up ₹1 crore in 25 years. If you want to raise the payout 5% a year for inflation, start at about ₹52,700 for 25 years or ₹47,500 for 30 years.
Is SWP better than an FD for monthly income?
FD interest is taxed in full at your slab rate and banks deduct TDS once it crosses ₹50,000 a year (₹1 lakh for senior citizens). In an SWP only the gain part of each payout is taxed, often at lower capital-gains rates, but the value moves with the market and is not guaranteed.
How is tax on SWP calculated?
Each withdrawal redeems your oldest units first. The gain is the redemption value minus their cost, short- or long-term by how long those units were held, and taxed by fund type.
Is TDS deducted on SWP withdrawals?
Not for resident individuals — redemptions are capital gains, which are excluded from TDS on mutual fund income. Non-residents do have tax deducted.
Should I choose monthly or quarterly withdrawals?
Monthly suits regular expenses. Quarterly leaves money invested a little longer, so the corpus lasts slightly longer for the same yearly amount.