SWP Calculator 2026 (With Inflation)

Systematic Withdrawal Plan — calculate monthly retirement income and see how long your corpus lasts with inflation adjustments.

Quick Presets:
100000100000000
1000500000
%
0%12%
%
1%20%
Yrs
1 Yr50 Yrs

Final balance after 25 years

₹81.70 L

Withdrawing ₹30,000/month , you'll still have this much left at year 25.

Total Withdrawn Amount₹90.00 L
Total Interest Earned₹1.22 Cr

Corpus & Withdrawal Breakdown

Total Withdrawn Amount:₹90.00 L
Interest Earned:₹1.22 Cr
Final Balance:₹81.70 L

Corpus Trajectory Over Time

📖 In-Depth Financial Guide12 min read

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.

Retirement Cash Flow Engine

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

Standard Formula
Balance(m) = Balance(m-1) x (1 + r/12) - Withdrawal
Live Calculation (Plugging Your Values)
Starting corpus (C):₹50.00 L
Monthly withdrawal (W):₹30,000
Expected return (r):8%
Months the corpus lasted (m):300
Substituted Equation:
₹50.00 L at 8% with ₹30,000 withdrawn monthly lasts 300 months
How long the corpus lasts:300

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.

Wealth Intelligence

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

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