SWP Calculator

₹25,000 a month (6% a year) at an 8% return leaves about ₹90.8 lakh after 20 years. Withdrawals above the return draw the corpus down.

You invest a lump sum in a mutual fund and redeem a fixed amount every month. Each withdrawal sells units at that day’s NAV; the rest stays invested and keeps earning. ₹50 lakh at 8% a year paying ₹25,000 a month for 20 years leaves about ₹90.8 lakh, because the withdrawals (6% a year) are less than the return.

Only the gain in each withdrawal is taxed, not the whole amount. In an equity fund the first year’s gains are short-term (20%), after that long-term at 12.5% above ₹1.25 lakh a year. On ₹25,000 a month from ₹50 lakh, tax is about ₹1.1 lakh over 20 years, 2% of the ₹60 lakh withdrawn. In a debt fund at a 30% slab it is about ₹9.2 lakh, 15%.

As long as the withdrawals stay below the return, the corpus grows. If you raise them each year, it can run out: ₹50 lakh at 8% with ₹40,000 a month rising 6% a year runs out in about 12 years. The calculator shows the month.

One that is below the fund’s long-run return after inflation. 4% to 6% a year of the corpus from a balanced fund has lasted long periods; higher rates draw down the capital, especially if markets fall in the first years.

FD interest is fully taxed at your slab; SWP from an equity fund is taxed only on gains, and lightly. An SWP’s value moves with the market, while an FD’s does not. Many retirees combine the two.

Yes: an SWP calculator and systematic withdrawal plan calculator for mutual funds, with a step-up for inflation, the month the corpus runs out and the tax on each year’s withdrawals. It is an SWP return calculator and mutual fund SWP calculator for equity and debt funds.