SWP Calculator

Plan a monthly income from a mutual fund: see how long your money lasts and what remains after each year.

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This SWP calculator shows what happens to a mutual fund investment when you take a fixed amount out of it every month: how much is left at the end of each year, or how long the money lasts if it runs out. It suits retirees turning a lump sum into a monthly income, or anyone testing a planned payout.

The four inputs and what the tool assumes

Total investment (₹): the value of your fund holding on the day withdrawals start.
Monthly withdrawal (₹): the fixed sum you take out each month. It never rises, because the tool has no yearly step-up.
Expected return (% a year): 8% unless you change it; anything from −20% to 40% is accepted. Treat it as an assumption, not a forecast.
Withdrawal period (years): from 1 to 40, with 10 as the default.

One-twelfth of the yearly rate is added to the balance every month, and the withdrawal comes out at the end of that month. If the first withdrawal is more than the investment plus one month's growth, the tool stops and says your investment cannot fund even one withdrawal. If the money lasts the whole period, the headline is the balance left; if it runs out sooner, the headline is how long it lasted, with rows for the full monthly withdrawals and the smaller final payment. Either way you also see the total withdrawn, the growth earned and a year-by-year table, in whole rupees.

The monthly loop, and the withdrawal that leaves your capital untouched

Every month the tool works out new balance = old balance × (1 + yearly rate ÷ 12) − withdrawal. One figure is worth knowing before you pick a withdrawal: investment × yearly rate ÷ 12, which is what the fund earns in its first month. Withdraw less than this and the balance keeps rising; withdraw more and you start spending capital.

For ₹10 lakh at 8%, that figure is ₹10,00,000 × 0.08 ÷ 12 = ₹6,666.67. Entering ₹6,667 a month for 30 years leaves ₹9,99,503, almost exactly the starting amount. The small dip comes from rounding the payment up by 33 paise.

Worked example: ₹10 lakh, ₹8,000 a month, 8% for 10 years

In month 1, ₹10,00,000 earns ₹6,666.67 and becomes ₹10,06,666.67. Taking out ₹8,000 leaves ₹9,98,666.67. Since each payment is ₹1,333 more than the first month's growth, the balance slips slightly every month.

After 12 months the balance is ₹9,83,400. After 10 years:

Total withdrawn: 120 × ₹8,000 = ₹9,60,000
Balance left: ₹7,56,072
Growth earned: ₹9,60,000 + ₹7,56,072 − ₹10,00,000 = ₹7,16,072

Run the same plan at 6% instead of 8% and the balance after 10 years drops to ₹5,08,362. A two-point lower return cost almost a quarter of the starting money.

How quickly a bigger withdrawal empties the fund

Keep ₹10 lakh at 8% but take ₹12,000 a month, with the period set to 15 years. The headline reads 10 years 2 months: 122 full withdrawals of ₹12,000, then a final partial payment of ₹536 in month 123.

Year	Withdrawn	Balance at year end
1	₹1,44,000	₹9,33,600
5	₹1,44,000	₹6,08,123
9	₹1,44,000	₹1,60,376
10	₹1,44,000	₹24,288
11	₹24,536	₹0

The yearly fall gets steeper (₹66,400 in year 1, ₹1,36,088 in year 10) because a shrinking balance earns less while the payout stays fixed. Year 11 holds two full payments plus the ₹536 remainder. Raising the withdrawal by half, from ₹8,000 to ₹12,000, cut the balance after 10 years from ₹7.56 lakh to ₹24,288.

Tax on SWP payouts in Tax Year 2026-27

Each SWP payment is a sale of units, and fund houses redeem the oldest units first (first in, first out). Only the profit inside the units sold is taxed, not the full payment, so in the early years most of each payout is your own money coming back.

Equity-oriented funds (at least 65% in shares of listed Indian companies): gains on units held more than 12 months are taxed at 12.5% on the year's total above ₹1.25 lakh; units held 12 months or less are taxed at 20%.
Debt funds (more than 65% in debt and money-market instruments) bought on or after 1 April 2023: gains are added to your income and taxed at your slab rate, however long you held them.

The equity rates have applied since 23 July 2024 and continue for Tax Year 2026-27 under sections 196 and 198 of the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026. Hybrid funds follow other rules. Resident investors have no TDS cut from redemptions; for NRIs, the fund house deducts tax on the gain when units are sold. The calculator ignores tax and exit loads, which many equity funds charge on units sold soon after purchase; your scheme document gives the terms.

Choosing a withdrawal you can live with

Start from the break-even figure and decide how far above it you will go.
Run a second scenario with a return two points lower. Actual NAVs move up and down, and a fall in the first few years hurts more than a steady rate shows, because you sell more units at low prices.
Allow for rising prices. At 6% inflation, ₹20,000 a month in 20 years buys what about ₹6,236 does today; the inflation calculator shows the effect for your own numbers. Re-run this plan with a higher withdrawal every few years.
Building the corpus first? The lumpsum calculator projects how a one-time investment grows before withdrawals begin.

All results are estimates for planning, not financial or tax advice.

Frequently asked questions

What is a safe monthly withdrawal from a mutual fund?

No rate is safe in every market. A simple check is to keep the monthly amount at or below the investment multiplied by the expected yearly return and divided by 12; above that, the principal starts shrinking even if returns match your assumption.

How long will ₹50 lakh last with ₹40,000 a month?

With the period set to 40 years and a steady 8% a year, the calculator shows the money running out after 22 years 5 months, followed by one smaller final payment. At 6% it runs out after 16 years 4 months, so the return you assume matters a great deal.

How is SWP taxed in India?

Only the capital gain in the units redeemed is taxed. For equity funds, long-term gains above ₹1.25 lakh a year are taxed at 12.5% and short-term gains at 20%; debt fund units bought from April 2023 onwards are taxed at your slab rate. Resident investors have no TDS deducted from SWP payouts.

Is SWP better than FD interest for monthly income?

FD interest is fixed and fully taxable at your slab rate. An SWP is market-linked, so the balance can fall, but only the profit portion of each payment is taxed. The choice depends on how much ups and downs in value you can accept.

Is SWP better than the IDCW (dividend) option?

IDCW payouts are decided by the fund house, are not fixed, and are taxed in full at your slab rate. An SWP lets you choose the amount and date, and tax falls only on the gain inside each redemption.

When should I start an SWP after investing in an equity fund?

Waiting until the units are more than 12 months old moves the gains into the lower long-term rate and usually past the exit-load period. Check the exit load in the scheme information document of your fund.

Why does it say my investment cannot fund even one withdrawal?

The first payment comes at the end of month 1, after one month of growth, so it cannot be larger than the investment plus that growth. For ₹10 lakh at 8% the largest first withdrawal accepted is ₹10,06,666. Lower the withdrawal or enter a bigger investment.

Why does the calculator show growth even when my balance fell?

Growth earned counts everything the money earned while invested, including the part already paid out to you. It equals total withdrawn plus the final balance minus the original investment.