Quick answer
How long will my money last with an SWP?
It depends on how much you withdraw versus what the fund earns. Taking ₹20,000 a month from ₹25 lakh at an 8% return still leaves money after 15 years, but the corpus shrinks because you withdraw 9.6% a year. Keeping withdrawals near 4–6% of the corpus a year usually makes an SWP last for decades.
- SWP = fixed withdrawals; the rest stays invested
- Sustainable rate: about 4–6% of the corpus a year
- Tax: only the gain part of each withdrawal is taxed
How does the SWP calculator work?
Each month the calculator takes your withdrawal out of the corpus, then lets the rest grow at the expected return for that month. It repeats this for every month of the period you choose and shows the year-end balance, so you can see whether your money lasts.
For example, ₹50 lakh earning 8% a year can pay ₹30,000 a month for 20 years. You withdraw ₹72 lakh in total and about ₹61.25 lakh is still invested at the end. Raise the withdrawal to ₹40,000 a month and the same corpus runs out after about 20 years and 11 months.
Returns from mutual funds aren’t fixed, so treat the result as a plan, not a promise. Mutual fund investments are subject to market risks.
Frequently asked questions
What is an SWP in mutual funds?
A Systematic Withdrawal Plan (SWP) pays you a fixed amount from your mutual fund every month or quarter by selling units. The rest of your money stays invested and keeps growing.
How much monthly income can I get from ₹25 lakh?
Withdrawing ₹20,000 a month (9.6% a year) from ₹25 lakh at an 8% return lasts well beyond 15 years but slowly shrinks the corpus. A withdrawal of about ₹16,000 a month keeps the corpus roughly steady at 8%.
Is SWP better than FD interest?
An SWP from a debt or hybrid fund can be more tax-efficient than FD interest, because only the gain portion of each withdrawal is taxed. Returns are not guaranteed, unlike an FD.
What is a safe withdrawal rate?
A common guideline is 4–6% of the corpus a year for long retirements, so your money keeps pace with inflation and market ups and downs.
How long will ₹25 lakh last with a ₹25,000 monthly SWP?
At an 8% annual return, withdrawing ₹25,000 a month (12% of the corpus a year) from ₹25 lakh lasts about 13 years 3 months before the money runs out.
Can I change or stop an SWP later?
Yes. You can change the amount, date or frequency, or stop an SWP at any time through the fund house or your investment app. The units still in the fund stay invested.