SWP Calculator

Make your corpus last.

Withdrawal rate, corpus depletion timeline, and safety margin — all in one view. See exactly how long your money lasts.

Plan with Goal calc →

Starting corpus

₹1 Cr

Corpus survives

50+ yrs

▲ still intact

Safety margin

3%

▲ return − WR − step-up

Monthly withdrawal

₹33 K

4% of corpus / 12

Corpus

₹
%

Withdrawal

%

Monthly withdrawal (derived)

₹33 K/mo

= corpus × rate ÷ 12

%/yr

withdrawal grows to keep pace with lifestyle

Inflation

%

Corpus depletion timeline

Portfolio survives 50+ years. Safety margin 3% — return minus withdrawal rate minus step-up.

Withdrawal rate

4%/yr

₹33 K/mo to start

Corpus survives

50+ yrs

Safety margin

3%

▲ return − WR − step-up

Corpus checkpoints — when does it cross each crore?

LevelYearCorpus value (today's ₹ below)
₹1 CrYear 0₹1 Crtoday's ₹: ₹1 Cr

SWP Calculator — Corpus Depletion Timeline & Safety Margin

This calculator simulates a Systematic Withdrawal Plan (SWP) month-by-month for up to 50 years. Each month: corpus = corpus × (1 + monthly return) − monthly withdrawal. After every 12 months, the monthly withdrawal is stepped up by the annual step-up rate. The safety margin (portfolio return − WR − step-up) is the key signal: positive = corpus grows indefinitely; negative = eventual depletion. Based on the end-of-month model consistent with Bengen (1994), “Determining Withdrawal Rates Using Historical Data.”

+What is SWP and how is it used in retirement planning?

SWP (Systematic Withdrawal Plan) lets retirees withdraw a fixed monthly amount from a mutual fund while the remaining corpus continues to compound. A ₹1 crore equity mutual fund corpus at 12% XIRR can support ₹33,333/month (4% annual WR) for 50+ years — the math works as long as the portfolio return exceeds the withdrawal rate + step-up. SWP is tax-efficient compared to fixed deposits because only the gain component of each redemption is taxed, not the principal.

+Why does the step-up rate matter so much?

Step-up compounds like a second "withdrawal rate". A 5% annual step-up on a ₹33,333/month initial withdrawal means you're drawing ₹54,307/month by year 10 and ₹88,510/month by year 20 — a 2.7x increase. This rapidly accelerates corpus depletion when portfolio returns are modest. The safety margin formula captures this: a 12% return with 4% WR and 5% step-up has a 3% buffer; a 12% return with 4% WR and 10% step-up has a −2% margin and will deplete. Always check the safety margin before finalising your withdrawal rate.

+What is a realistic corpus size for a ₹1 lakh/month retirement in India?

At the conservative 4% rule: ₹1L/month × 12 months / 4% = ₹3 crore. At 3.5%: ₹3.4 crore. At India-specific conditions (7% inflation, 5% step-up, 11% portfolio return), the calculator typically shows ₹3-4 crore as the safe range for a ₹1L/month starting withdrawal. Remember: the ₹1L/month figure should be in future (inflation-adjusted) rupees at the time of retirement, not today's rupees — use the Goal Calculator to size the correct corpus after inflation.

+How is the monthly withdrawal taxed in an SWP?

Each SWP withdrawal redeems units from your mutual fund. The redemption is split into: (a) return of principal (cost basis), which is not taxed, and (b) gain, which is taxed at LTCG 12.5% if units were held >12 months, or STCG 20% if held <12 months (Finance Act 2024). In practice, only a portion of each monthly redemption is gain, so the effective tax rate on withdrawals is much lower than on a single lump-sum redemption. Our calculator does not model per-withdrawal tax; consult a tax advisor for personalised estimates.