A Systematic Withdrawal Plan (SWP) lets you take a fixed amount out of a mutual fund every month while the rest stays invested. People use it for retirement income, for a regular payout from a lumpsum, or to fund a known monthly expense.
The question that matters is whether the money lasts. Enter your corpus, the monthly withdrawal, the return you expect and the number of years. The calculator shows the total withdrawn, the final value, and a year-by-year and month-by-month schedule. If the corpus cannot sustain the withdrawals, it tells you the month in which the money runs out.
You can add a yearly increase to the withdrawal to allow for rising costs. The monthly rate follows the same rule as the CalcMojo [LINK: sip-calculator].
Reviewed by: CalcMojo Editorial Team
How the schedule is calculated
The calculator moves one month at a time. The monthly rate is the annual return divided by 12, the same as the CalcMojo SIP calculator. You choose when the withdrawal happens:
- Start of month (default). The withdrawal is taken first and the balance that remains earns that month's return. This mirrors the SIP calculator, where the instalment goes in at the start of the month.
- End of month. The month's return is added first and the withdrawal is taken afterwards. This leaves slightly more in the fund, so the final value is a little higher.
A yearly increase raises the withdrawal at the start of every new year, for example Rs 30,000 becomes Rs 31,500 in year 2 at 5%.
If the balance cannot cover a full withdrawal, the calculator pays out whatever is left, marks the month in which that happened and shows the balance at zero from then on.
Worked example with the default numbers
Corpus Rs 50,00,000, withdrawal Rs 30,000 a month, 9% expected return, 20 years, start-of-month timing.
| Result | Amount |
|---|---|
| Total withdrawn (240 x Rs 30,000) | Rs 72,00,000 |
| Total returns earned | Rs 1,20,58,877 |
| Final value after 20 years | Rs 98,58,877 |
The monthly return on Rs 50 lakh at 9% is about Rs 37,500, which is more than the Rs 30,000 you take out. So the corpus keeps growing. With end-of-month timing the final value is Rs 1,00,09,152.
Raise the withdrawal to Rs 50,000 and the picture reverses. The same corpus pays 182 full withdrawals and runs out in month 183, about 15 years and 2 months. Total withdrawn is Rs 91,28,825 and the final value is zero.
How long will the money last?
With a constant return, the number of full withdrawals n solves this annuity equation for end-of-month withdrawals:
n = -ln(1 - C x r / W) / ln(1 + r)
where C is the corpus, W is the monthly withdrawal and r is the monthly rate. For Rs 10,00,000, Rs 10,000 a month and 6% a year, r = 0.5%, so n = ln 2 / ln 1.005, which is about 138.98. The corpus pays 138 full withdrawals and a part payment in month 139. With start-of-month timing the result is 137 full withdrawals. The calculator reproduces both figures.
If C x r is greater than or equal to W, the return alone covers the withdrawal and the formula has no answer: the corpus never runs out under a constant return.
The risk this calculator cannot show
An SWP calculator uses one smooth return. Real markets do not. If the fund falls early on while you are still withdrawing, you sell more units at low prices, and the corpus may never recover even if average returns later look fine. This is known as sequence risk, and it is the main reason a plan that works on a calculator can fail in practice.
Ways to reduce the risk:
- Choose a withdrawal rate well below the return you expect. Withdrawing 6-7% of the corpus each year from a fund you hope returns 9% leaves a margin.
- Run the calculator at a lower return than you hope for, and with a yearly increase.
- Keep one or two years of withdrawals in a lower-risk fund.
- Review the plan once a year and cut the withdrawal if the corpus has fallen.
Tax on SWP withdrawals (FY 2026-27)
Each SWP payment is a redemption of units, so only the gain part of each payment is taxed, not the whole amount. As an example, if your units cost Rs 100 and the NAV is Rs 150, a Rs 30,000 withdrawal contains Rs 20,000 of cost and Rs 10,000 of gain. Fund houses generally treat the oldest units as sold first.
For equity-oriented funds, gains on units held up to 12 months are taxed at 20%. Gains on units held for more than 12 months are taxed at 12.5% once the year's long-term gains exceed Rs 1.25 lakh. Surcharge and 4% cess apply where relevant. The Rs 1.25 lakh exemption applies once a year across all your equity funds, not to each withdrawal.
These rates date from the Union Budget of July 2024 and, per the sources below, continue for FY 2026-27, the first year of the Income-tax Act, 2025. Other fund types follow different rules, so check the CBDT guidance for yours. The calculator's figures are before tax, so your usable payout will be a little lower. This is general information, not tax advice.
SWP compared with a dividend option
Dividends from a fund are paid at the fund's discretion, and the amount can vary or stop. An SWP gives you a fixed amount on a fixed date that you choose. The trade-off is that an SWP always reduces your units, while a dividend is paid out of the fund's distributable surplus. Look at the scheme documents of your fund for how each works.
Frequently asked questions
What is an SWP?
A Systematic Withdrawal Plan lets you redeem a set amount from a mutual fund at regular intervals, usually monthly. The rest of the money stays invested.
How long will my SWP corpus last?
It depends on the corpus, the monthly withdrawal and the return. Enter your numbers and the calculator shows the month in which the money runs out, or the final value if it lasts the full period.
What withdrawal rate is sustainable?
If the return alone covers the withdrawal, the corpus does not run out on a constant return. Real returns vary, so a margin matters. A yearly withdrawal well below your expected return is safer.
Should the withdrawal increase every year?
Prices rise over time, so a fixed withdrawal buys less each year. The optional yearly increase lets you model a rising payout and see how much faster the corpus falls.
What is the difference between start-of-month and end-of-month withdrawal?
At the start of the month, the withdrawal is taken before the balance earns that month's return. At month end, the return is added first. End-of-month timing leaves a little more in the fund.
How is an SWP taxed in FY 2026-27?
Each withdrawal is a redemption, so only the gain portion is taxed. For equity-oriented funds, gains within 12 months are taxed at 20%, and gains after 12 months above Rs 1.25 lakh a year at 12.5%. Other fund types differ.
Are SWP payouts guaranteed?
No. The fund value is market-linked, so the amount that remains can be lower than shown, and the corpus can run out sooner.
Sources & Methodology
- PIB: Capital gains taxation simplified and rationalised (Budget 2024) — short-term rate of 20% and long-term rate of 12.5% on listed equity and equity-oriented fund units, and the Rs 1.25 lakh long-term exemption.
- PIB: CBDT FAQs on the new capital gains regime — holding periods and treatment of other fund types.
- Income-tax Act, 2025 as amended by the Finance Act, 2026 (Income Tax Department) — the Act in force from 1 April 2026.
- AMFI: investor disclaimer — mutual fund returns cannot be guaranteed.
- Method: month-by-month balance with a monthly rate of annual return / 12, matching the CalcMojo SIP calculator; depletion check against the annuity formula n = -ln(1 - C x r / W) / ln(1 + r).
This calculator provides estimates based on a constant assumed return. Real markets rise and fall, and the order of returns matters for withdrawals. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Returns are not guaranteed, and past performance does not indicate future results. This is not investment or tax advice; speak to a SEBI-registered investment adviser or a qualified tax professional.
Data accurate as of: November 2026