SWP calculator
How long a corpus lasts while you withdraw from it
Worked example
Using the default values, swp calculator gives a the corpus lasts of Over 60 years.
| Item | Value |
|---|---|
| Corpus | ₹1,00,00,000 |
| Withdrawing | ₹60,000 a month |
| Return assumed | 8.0% a year |
| Lasts | 720 months · Over 60 years |
| Total withdrawn | ₹4,32,00,000 |
| Left at the end | ₹12,85,90,183 |
| Withdrawal that never touches capital | ₹66,667 a month |
| You are withdrawing | 90.0% of that |
What you need
- Corpus
- Withdraw each month
- Expected return
- Increase withdrawal yearly
Questions
How much can I safely withdraw?
Anything up to the return the corpus earns leaves the capital intact. Above that you are eating into it — the calculator shows both figures so you can see which side of the line you are on.
Is SWP better than an FD for income?
Often, on tax. FD interest is fully taxable at slab, whereas each SWP withdrawal is part capital and part gain, and only the gain is taxed. The trade-off is that the value fluctuates.
Important
Withdrawals from an equity fund are taxed as capital gains on the gain portion only, which usually makes an SWP more tax-efficient than interest income. Returns are assumed steady here; a bad run early in retirement empties a corpus far faster than the average suggests, which is why the sustainable figure above matters more than the headline number.