SWP from equity MF at 10-12% return lets you withdraw more than FD interest (6-7%) while keeping corpus intact longer. Tax-efficient too — only gains are taxed as LTCG.

Monthly Withdrawal

₹10,000

Max sustainable (interest-only): ₹16,667/mo

Total Withdrawn

₹18.00 L

Corpus Remaining

₹47.63 L

Corpus Depletes

Never

Max Sustainable/mo

₹16,667

Corpus never depletes

Corpus survives 15 years of withdrawals

Corpus Depletion Chart

Corpus balance as you withdraw each year

Remaining Corpus

Cumulative Withdrawn

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A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund investment at regular intervals — making it an excellent retirement income tool. The key is choosing a withdrawal rate that sustains your corpus. Use the calculator above to find the right balance between monthly income and corpus longevity.

How Long Your Corpus Lasts at Different Withdrawal Rates

Corpus	₹10,000/month	₹20,000/month	₹30,000/month	₹50,000/month
₹20L	30+ years	12 years	7.5 years	4.2 years
₹50L	30+ years	30+ years	25 years	12 years
₹1Cr	30+ years	30+ years	30+ years	30+ years

*Assuming 10% annual returns on the remaining corpus. 30+ years = corpus sustains indefinitely.

SWP vs Other Monthly Income Options

Feature	SWP	FD Monthly Payout	Annuity
Returns	8-12% (market-linked)	6-7% (fixed)	5-7% (fixed)
Tax Efficiency	High (LTCG only)	Low (fully taxable)	Low (fully taxable)
Corpus Preservation	Partial (withdrawals + growth)	Full (only interest paid)	None (corpus gone)
Flexibility	Change amount anytime	Fixed at booking	Fixed at purchase

How SWP Works

In plain words

SWP (Systematic Withdrawal Plan) lets you withdraw a fixed amount from your investment corpus at regular intervals. The remaining corpus continues to earn returns. If the withdrawal rate exceeds the return rate, the corpus will eventually deplete.

How the calculation works

Balance = Previous Balance × (1 + r) - W

Where:
r = Monthly Return Rate (Annual Rate ÷ 12 ÷ 100)
W = Monthly Withdrawal Amount
Balance starts at the initial corpus and decreases each month after withdrawal.

A quick example

Let us calculate SWP sustainability for a typical retirement scenario:

Invested Corpus:₹20,00,000 (₹20 Lakh)

Monthly Withdrawal:₹10,000

Expected Return:10% p.a.

Withdrawal Period:15 years

Step by step

1.Monthly return r = 10% ÷ 12 ÷ 100 = 0.00833
2.Each month: Balance = Balance × 1.00833 - 10,000
3.After 15 years (180 months), calculate remaining balance
4.If balance > 0, corpus sustains the full period
5.Max sustainable withdrawal = Corpus × r = 20,00,000 × 0.00833 = ₹16,667/month

So the answer is: With ₹10,000/month withdrawal at 10% return, the corpus sustains beyond 15 years.

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Frequently Asked Questions

What is SWP?

SWP (Systematic Withdrawal Plan) is a facility that allows you to withdraw a fixed amount from your mutual fund investment at regular intervals, usually monthly.

How much can I withdraw monthly?

A safe withdrawal rate is 4-6% of your corpus annually. Withdrawing more than the expected return rate will deplete your corpus over time.

Is SWP better than FD?

SWP from equity/hybrid funds at 10-12% returns can provide higher withdrawals than FD interest (6-7%), but comes with market risk. SWP is also more tax-efficient: only gains are taxed as LTCG.

What is the max sustainable withdrawal?

The maximum sustainable withdrawal equals the monthly interest earned on your corpus. Withdrawing only the interest keeps your corpus intact indefinitely.