SWP Calculator – Figure Out How Long Your Retirement Corpus Will Actually Last

Let’s Talk About the Question Nobody Wants to Answer

You’ve spent 25-30 years building up a corpus. Now you’re retiring, or thinking about retirement, and the big scary question hits: how long will this money actually last if I withdraw a fixed amount every month?

That’s exactly what this SWP (Systematic Withdrawal Plan) calculator solves. You tell it how much you’ve saved, how much you want to withdraw each month, and what return your remaining investments are still earning – and it tells you exactly how many years your money will survive.

SWP is basically the mirror image of SIP. While SIP builds wealth, SWP draws it down – but in a planned, organised way that keeps your remaining corpus working for you even as you take money out.

How to Use the Calculator

Step 1 – Enter your total corpus. This is the total amount you have saved up – your retirement fund, your mutual fund portfolio, whatever you’re planning to draw from.

Step 2 – Set your monthly withdrawal amount. How much do you actually need every month to live comfortably? Be honest here. Include rent or EMIs, groceries, utilities, insurance, and a little buffer for unexpected expenses.

Step 3 – Enter the expected annual return. Your money doesn’t just sit there while you withdraw from it – it keeps earning returns on whatever balance remains. For a balanced portfolio, 8-10% is reasonable. For a more conservative debt-heavy portfolio, 6-7% might be more accurate.

The calculator then shows you how many months or years your corpus will last, along with a chart showing how your balance decreases over time.

The Math Behind SWP

The SWP calculator uses the present value of annuity formula rearranged to find the withdrawal period:

n = -ln(1 – (C × r) / P) / ln(1 + r)

Where:

• n – Number of months your money will last
• P – Your initial corpus (total saved amount)
• C – Monthly withdrawal amount
• r – Monthly return rate (annual return ÷ 12 ÷ 100)
• ln – Natural logarithm

Let’s walk through a real example:

You have ₹50,00,000 saved up. You want to withdraw ₹40,000 every month. Your remaining investments earn 10% annually.

r = 10 ÷ 12 ÷ 100 = 0.00833 P = 50,00,000 C = 40,000

n = -ln(1 – (40,000 × 0.00833) / 50,00,000) / ln(1 + 0.00833) n = -ln(1 – 333.2 / 50,00,000) / ln(1.00833) n = -ln(1 – 0.00006664) / 0.008299 n = -ln(0.99993336) / 0.008299 n ≈ 0.00006664 / 0.008299 n ≈ 240 months = 20 years

So with ₹50 lakhs, withdrawing ₹40,000 per month, and earning 10% on the remaining balance, your money lasts about 20 years. That takes you from age 60 to age 80.

Want it to last longer? Either increase your corpus, decrease your monthly withdrawal, or find ways to earn slightly better returns on the remaining balance.

Why SWP Is Smarter Than Just Spending Your Savings

Your Money Keeps Earning While You Withdraw

This is the big one. When you withdraw ₹40,000 from a ₹50 lakh corpus, the remaining ₹49,60,000 is still invested and still earning returns. Those returns partially offset what you’re taking out. This is fundamentally different from keeping everything in a savings account and just spending it down.

No Tax Shock Every Month

With SWP from equity mutual funds, you only pay tax on the gain portion of each withdrawal – not on the entire amount. This is significantly more tax-efficient than, say, withdrawing interest from a fixed deposit every month (where the interest is fully taxable as per your slab).

You Stay in Control

Unlike an annuity where you hand over your money to an insurance company and they decide how much you get, SWP keeps the money in your name, in your account. You can increase withdrawals, decrease them, pause them, or stop entirely if your situation changes.

Inflation Protection Built In

If your remaining corpus is invested in a mix of equity and debt, the returns should (over time) keep pace with or exceed inflation. This means your ₹40,000 withdrawal in year one and your ₹40,000 withdrawal in year ten have roughly similar purchasing power – unlike a fixed pension where inflation silently destroys your lifestyle over time.

What Kind of Return Should You Assume?

This is where most people get it wrong – either too optimistic or too conservative.

If Your Corpus Is Mostly in Equity Funds

10-12% is historically reasonable for a long-term equity portfolio. But remember: in the early years of retirement, a big market crash could seriously damage your corpus before it has time to recover. This is called “sequence of returns risk” and it’s the scariest thing about SWP.

If Your Corpus Is Split 60-40 (Equity-Debt)

8-10% is a more realistic blended return. This is what most financial advisors recommend for retirees – enough growth to fight inflation, enough stability to not panic during corrections.

If Your Corpus Is Mostly in Debt Funds or FDs

5-7% is the realistic range. Your money is safer, but it won’t grow as fast. This means you’ll need a larger initial corpus to support the same monthly withdrawal for the same number of years.

Real Scenarios That Actually Matter

The Early Retiree

Neeraj retires at 58 with ₹75 lakhs. He needs ₹50,000 per month. His portfolio earns 9% annually.

Running this through the calculator: his money lasts approximately 23 years, taking him to age 81. Comfortable, but not a huge cushion. If he reduces his withdrawal to ₹40,000 per month, it stretches to about 35 years – much safer.

The Comfortable Retiree

Lakshmi retires at 62 with ₹1.5 crore (built through years of disciplined SIP investing). She needs ₹60,000 per month. Portfolio earning 9%.

Her corpus lasts approximately 42 years. She’ll be 104 before the money runs out. That’s not a problem anyone needs to worry about – and she can comfortably increase her withdrawals or leave a healthy inheritance.

The Late Saver’s Reality Check

Mohan reaches 60 with only ₹20 lakhs saved. He needs ₹35,000 per month to get by.

Even at 10% returns, his money lasts only about 7.5 years. This is why the calculator is so valuable – it shows you the uncomfortable truth early, while there’s still time to adjust. Mohan might need to work a few more years, reduce expenses, or find supplementary income.

SWP vs Other Retirement Income Options

Option	Monthly Income	Tax Efficiency	Flexibility	Inflation Protection
SWP from Mutual Funds	You decide	Good – tax only on gains	Very high – change anytime	Yes, if equity is part of the mix
Annuity (Insurance)	Fixed by insurer	Poor – fully taxable	Very low – locked in	Usually no
Senior Citizen Savings Scheme	Limited to ₹3 lakh deposit	Fully taxable	Moderate	No
FD Interest	Depends on rate	Fully taxable	Moderate	No
Pension (if available)	Fixed amount	Taxable	None	Depends on the scheme

The takeaway: SWP from a well-diversified mutual fund portfolio gives you the best combination of flexibility, tax efficiency, and inflation protection. It’s not perfect – but it’s hard to beat for most retirees.

How Much Should You Withdraw Each Month?

A widely used rule of thumb is the 4% rule – withdraw 4% of your corpus in the first year, then adjust for inflation each year after that. If you have ₹1 crore, that’s ₹4 lakhs per year or about ₹33,000 per month.

But this rule was developed based on US market data. For Indian markets, which have historically delivered higher returns, some financial planners suggest 5% might be sustainable. Others argue that 3-4% is safer given India’s higher inflation rate.

The practical approach: Use our calculator to test different withdrawal amounts and see how many years each one lasts. Find the number where your money lasts at least 25-30 years beyond your retirement age. That’s your safe withdrawal amount.

Mistakes That Could Derail Your Retirement

Withdrawing Too Much Too Early

The first couple of years after retirement feel flush. You’re finally free! But if you withdraw 8-10% of your corpus in year one, you’ve set yourself up for trouble. The corpus shrinks too fast, and the returns on a smaller base can’t keep up.

Ignoring Sequence of Returns Risk

If the market crashes 30% in your first year of retirement and you’re still withdrawing ₹50,000 a month, your corpus takes a devastating double hit – down from the crash AND down from withdrawals. This is why having 1-2 years of expenses in cash or debt funds at the start of retirement is so important.

Not Rebalancing After Big Market Moves

If equity markets surge, your portfolio might shift to 80% equity when you wanted 60%. Rebalance annually. This locks in gains and keeps your risk level where you intended it.

Assuming Returns Will Be Constant

The calculator assumes a constant return for simplicity. Reality is messier. Some years you’ll earn 20%, some years you’ll lose 15%. Plan with a conservative return assumption and you’ll be pleasantly surprised more often than stressed.

Forgetting About Healthcare Costs

Medical expenses increase dramatically with age. Build an extra buffer into your monthly withdrawal – at least ₹5,000-10,000 for health insurance premiums and unexpected medical bills.

Quick Tips for Smart SWP Planning

Start with a lower withdrawal and increase gradually. Begin at 3-4% of your corpus and bump it up by 5-7% each year to account for inflation. This preserves more of your corpus in the early years.

Keep 1-2 years of expenses in liquid form. Park this in a liquid mutual fund or short-term debt fund. This way, even if equity markets crash, you’re not forced to sell equity at a loss just to pay your monthly bills.

Review your SWP annually, not monthly. Markets fluctuate. Your corpus value will go up and down. Check once a year, adjust if needed, and don’t panic in between.

Consider the tax impact before withdrawing. If you’re withdrawing from equity funds and you’ve held them for more than a year, only gains above ₹1.25 lakh are taxed at 12.5%. Structure your withdrawals to stay tax-efficient.

Questions People Actually Have About SWP

Can I change my SWP amount later? Absolutely. Unlike an annuity, SWP is fully flexible. You can increase, decrease, pause, or stop your withdrawals at any time without penalty.

What if my corpus runs out before I do? This is exactly why the calculator exists – to help you avoid this situation. If the numbers show your money won’t last long enough, you can adjust by withdrawing less, investing more conservatively, or finding supplementary income.

Is SWP taxable? Each SWP withdrawal is treated as a redemption. You pay tax only on the gain portion – not the entire withdrawal amount. For equity funds held over 1 year, LTCG above ₹1.25 lakh is taxed at 12.5%.

Should I do SWP from equity or debt funds? Ideally, a mix. Keep your equity allocation for long-term growth and withdraw from debt funds first. This way, your equity portion has time to recover from any market dips.

At what age should I start planning SWP? Start planning at least 5 years before retirement. The calculator helps you figure out whether your current corpus is enough, and how much more you need to save before you stop working.

Can I do SWP and still add money to my portfolio? Yes. If you have some income even after retirement (freelance work, rental income, pension), you can continue investing while also withdrawing. The net effect depends on whether you’re adding more than you’re taking out.

Your Retirement Deserves a Plan, Not Just a Hope

Most Indians don’t have a pension. No employer is going to send you a monthly cheque after you stop working. The money you build up during your working years is all you’ve got.

That makes planning non-negotiable. And this calculator is the fastest way to see whether your plan actually works – or whether you need to adjust something before it’s too late.

Plug in your numbers. See the reality. And then make your decisions based on actual math, not guesswork.

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Disclaimer:

This SWP calculator is provided for educational and informational purposes only. It uses mathematical projections based on the inputs you provide and assumes a constant rate of return throughout the withdrawal period.

Please keep in mind:

• Real investment returns vary significantly from year to year. A constant return assumption is a simplification.
• This calculator does not account for taxes on withdrawals, expense ratios, inflation, or any fees.
• The results are estimates. Your actual withdrawal period could be shorter or longer depending on market conditions.
• Nothing here should be treated as advice to buy or sell any specific investment product.
• Mutual fund investments carry market risk. The value of your corpus can go down as well as up.
• This tool has no connection to SEBI, AMFI, or any mutual fund company.

Retirement planning is one of the most important financial decisions you’ll ever make. Please consult a SEBI-registered investment advisor or certified financial planner before making any decisions based on this calculator.

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Also Try These Calculators on TappingMoney:

• SIP Calculator – Build your corpus with monthly investments
• Retirement Planner – Calculate how much you need to retire
• Lumpsum Calculator – See how a one-time investment grows
• Compound Interest Calculator – Understand compounding in detail
• PPF Calculator – A safe option for retirement savings

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Page last updated: January 2026 | Free to use | No sign-up needed