SWP Calculator 2026 (With Inflation)
Systematic Withdrawal Plan — calculate monthly retirement income and see how long your corpus lasts with inflation adjustments.
Final balance after 25 years
₹81.70 L
Withdrawing ₹30,000/month , you'll still have this much left at year 25.
Corpus & Withdrawal Breakdown
Corpus Trajectory Over Time
Safe Withdrawal Rate (SWR) for Indian Retirement, Explained
Why lower SWR requires a bigger corpus, the water tank analogy, inflation-adjusted retirement models, and a worked ₹12L cash-flow example.
Popular Monthly SWP Retirement Plans
Detailed corpus requirement, capital longevity, and post-tax returns across popular monthly withdrawal targets.
The Systematic Withdrawal Plan (SWP) Blueprint: Generating Regular Retirement Paychecks
A Systematic Withdrawal Plan (SWP) is the inverse of an SIP: instead of depositing monthly funds, you redeem a fixed rupee sum from your accumulated mutual fund corpus each month while the remaining balance stays invested and continues compounding. It offers superior tax efficiency compared to traditional bank FD interest or dividend schemes.
The 4% to 6% Safe Withdrawal Rate
Withdrawing 4% to 6% of your starting corpus annually from a balanced portfolio allows your capital to outlive you, ensuring your principal never depletes across a 30-year retirement.
Exceptional Tax Efficiency
Unlike FD interest (taxed 100% at slab), each SWP installment is treated as a partial return of capital plus capital gain. Only the small embedded capital gain portion is taxed, keeping TDS at zero.
SWP formula, with your numbers
Each month the corpus earns a return and then the withdrawal is taken out. While the return exceeds the withdrawal the corpus keeps growing; once the withdrawal is larger, the balance falls and the fall accelerates. This is why a small rise in the withdrawal can shorten the corpus life sharply.
Systematic Withdrawal Plan (SWP) FAQs
Everything retirees need to know about setting up tax-smart pensions.
How does an SWP save more income tax than a bank fixed deposit interest payout?
Bank FD interest is 100% taxable at your highest slab rate each financial year. In contrast, an SWP redemption consists predominantly of your own original capital (tax-free) with only a fraction representing capital gains, dramatically lowering your net tax bill.
Can my SWP portfolio run out of money if the stock market crashes?
If your monthly withdrawal rate is excessively high (e.g. 10%–12%) and markets experience a bear market, portfolio longevity is compromised. Maintaining a conservative 5%–6% withdrawal rate and keeping 2 years of expenses in debt funds shields against sequence-of-returns risk.
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Safe Withdrawal Rate (SWR) for Indian Retirement, Explained
Why lower SWR requires a bigger corpus, the water tank analogy, inflation-adjusted retirement models, and a worked ₹12L cash-flow example.