SWP Calculator with Inflation: Monthly Income, How Long It Lasts & Tax
A Systematic Withdrawal Plan (SWP) pays you a fixed amount every month from a mutual fund while the rest stays invested. Enter your corpus, monthly withdrawal and expected return to see how long your money lasts, the largest withdrawal it can sustain, the effect of raising it every year for inflation, and the tax on your withdrawals under India's 2026 rules.
SWP Calculator
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Your balance, year by year
Year-by-year table ▼
| Year | Opening | Withdrawn | Returns | Est. tax | Closing |
|---|
Assumes a steady return, withdrawals at the end of each month, and the ₹1.25 lakh equity exemption unused by your other investments. Tax excludes cess and surcharge and is paid by you, not taken from the fund. Real fund returns vary year to year. An estimate for planning, not investment advice.
Will your SWP actually cover your retirement?
An SWP only works if the corpus behind it is big enough. Answer 5 quick questions to see whether your savings reach the number you need, and when they would run out.
How to use the SWP calculator
- Total investment: the lump sum you will put into the fund, for example your retirement corpus or a maturity amount.
- Monthly withdrawal: the income you want each month in the first year.
- Expected return: a conservative long-run yearly return for the fund you will use (see the FAQ for typical ranges).
- Time period: how many years the income must last. For retirement, plan to age 85–90.
- Inflation increase: how much to raise the withdrawal each year. Leave it at 0 for a fixed income, or use 5–6% to keep its buying power.
- Fund type: equity/hybrid or debt, which decides how your withdrawals are taxed.
The results show whether the money lasts, what is left at the end, the tax you can expect, and the maximum monthly withdrawal your corpus can sustain for the whole period at the same inflation increase.
SWP formula, with a worked example
For a fixed monthly withdrawal taken at the end of each month, the value left after n months is:
- P = amount invested, W = monthly withdrawal, n = number of months
- r = monthly return = (1 + annual return)1/12 − 1. A 10% annual return is about 0.797% a month, not 0.833% (10 ÷ 12), which would overstate growth.
Example: invest ₹50.00 L and withdraw ₹30,000 a month for 20 years at 10%. You withdraw ₹72.00 L in total and still have ₹1.21 Cr left, because ₹3.6 lakh a year is less than what ₹50.00 L earns. In equity funds the estimated tax over those 20 years is only about ₹2.22 L, since most withdrawals are your own money coming back.
SWP calculator with inflation: why a flat withdrawal is misleading
Most SWP calculators assume you withdraw the same amount for 20 or 30 years. But at 6% inflation, ₹50,000 buys only about ₹28,000 worth of today's groceries after 10 years, and about ₹16,000 worth after 20. To keep your lifestyle you have to raise the withdrawal every year, and that changes the answer dramatically.
| Starting withdrawal | 8% return | 10% return | 12% return |
|---|---|---|---|
| ₹30,000/month | 41 yr 2 mo | 60+ years | 60+ years |
| ₹40,000/month | 27 yr 7 mo | 43 yr 2 mo | 60+ years |
| ₹50,000/month | 20 yr 10 mo | 27 yr 6 mo | 54 yr 1 mo |
| ₹60,000/month | 16 yr 9 mo | 20 yr 6 mo | 28 yr 5 mo |
Compare a flat ₹50,000 a month at 10%, which lasts 60+ years, with the same starting amount rising 6% a year, which lasts about 27 years 6 months. Set the inflation increase in the calculator above to see your own numbers.
How long will ₹1 crore last with a fixed SWP?
If the monthly withdrawal never changes, here is how long a ₹1 crore corpus lasts at different returns:
| Monthly withdrawal | 8% return | 10% return | 12% return |
|---|---|---|---|
| ₹50,000 | 60+ years | 60+ years | 60+ years |
| ₹60,000 | 60+ years | 60+ years | 60+ years |
| ₹75,000 | 25 yr 5 mo | 60+ years | 60+ years |
| ₹1,00,000 | 13 yr 5 mo | 16 yr 10 mo | 26 yr 3 mo |
"60+ years" means the fund earns at least as much as you take out, so the corpus is never used up. That is why a fixed SWP looks safe, and why it is risky to rely on one without the inflation increase.
How much monthly income can your corpus give?
The largest monthly SWP that lasts 25 years at a 10% return, with and without a 6% yearly inflation increase:
| Corpus | Fixed amount | Rising 6% a year (starting amount) |
|---|---|---|
| ₹50.00 L | ₹43,900 | ₹26,300 |
| ₹1.00 Cr | ₹87,800 | ₹52,700 |
| ₹2.00 Cr | ₹1.76 L | ₹1.06 L |
| ₹3.00 Cr | ₹2.63 L | ₹1.58 L |
Planning for inflation cuts the safe starting income by about 40%. If ₹52,700 a month from ₹1 crore isn't enough, the fix is a bigger corpus, a later retirement or a smaller budget. Our retirement calculator works out the corpus you need.
How SWP is taxed in India (2026)
Each SWP payment is treated as selling some units. Only the gain in those units is taxed. The part that is your original investment coming back is not, which is why SWP tax stays low for the first several years.
| Fund type | Held 12 months or less | Held longer |
|---|---|---|
| Equity, and hybrid with 65%+ equity | 20% (short-term) | 12.5% on gains above ₹1.25 lakh a year |
| Debt funds bought on or after 1 April 2023 | Your slab rate | Your slab rate |
| Hybrid with 35–65% equity | Slab rate (up to 24 months) | 12.5% after 24 months |
Example: ₹1 crore in an equity fund paying ₹60,000 a month for 10 years at 10% creates an estimated ₹1.88 L of tax over the 10 years. Keeping ₹1 crore in a 7% FD instead produces ₹7 lakh of interest a year, all taxable: about ₹21.00 L of tax over 10 years at the 30% slab.
Rates are from the Income-tax Act as amended by the 2024 Budget and carried into the Income-tax Act, 2025 (in force from 1 April 2026). The ₹1.25 lakh exemption is shared with your other equity gains for the year. Add 4% cess, and surcharge if it applies.
SWP vs FD, SCSS and annuity for monthly income
| Mutual fund SWP | Bank FD | SCSS | Annuity | |
|---|---|---|---|---|
| Typical return | 7–11%, varies | 6.5–8% | 8.2% (2026) | 6–7.5%, fixed for life |
| Tax on income | Gain part only, often 12.5% or nil | All interest at slab | All interest at slab | All pension at slab |
| Beats inflation? | Yes, over long periods (equity/hybrid) | Barely, after tax | Barely, after tax | No, payout never rises |
| Access to capital | Any time | Penalty to break | 5-year lock-in, ₹30 lakh cap | Usually locked for life |
| Main risk | Market falls early in retirement | Inflation, reinvestment | Inflation, cap | Inflation |
A common approach is to combine them: SCSS and FDs for the first few years of safe income, and an equity or hybrid fund SWP for the long run. Keep 2–3 years of withdrawals in a liquid or debt fund so a market fall never forces you to sell equity at a low price. Our guide to using SWP for retirement income explains the bucket strategy step by step.
Common SWP mistakes
- Assuming 12%+ returns. A high return makes almost any withdrawal look sustainable. Plan with 9–10% for a balanced portfolio.
- Ignoring inflation. A fixed SWP slowly loses its buying power. Model a 5–6% yearly increase.
- Starting an equity SWP in year one. You may pay an exit load and 20% short-term tax. Start from a debt or hybrid fund, or wait a year.
- Withdrawing from equity in a crash. Selling after a 30% fall locks in the loss. A cash buffer avoids this.
- Forgetting EPF and NPS. Your SWP corpus is only one part of retirement income. See the EPF and NPS calculators.
SWP calculator FAQs
What is an SWP calculator?
An SWP (Systematic Withdrawal Plan) calculator shows what happens when you invest a lump sum in a mutual fund and withdraw a fixed amount every month. It estimates the total you will withdraw, the value left at the end, how many years the money lasts, and, in this calculator, the tax on your withdrawals and the largest monthly amount your corpus can sustain.
How is SWP calculated?
Each month the remaining balance grows at the monthly equivalent of your expected annual return, and then the withdrawal is taken out. For a fixed withdrawal W, the value after n months is P(1+r)^n − W × ((1+r)^n − 1) / r, where P is the amount invested and r = (1 + annual return)^(1/12) − 1. With an inflation step-up, the withdrawal rises once a year, so the calculator works month by month instead of using one formula.
How long will ₹1 crore last with an SWP of ₹50,000 a month?
At a 10% annual return, a flat ₹50,000 a month from ₹1 crore lasts 60+ years, because the fund earns more each year (about ₹10 lakh) than you take out (₹6 lakh). If you raise the withdrawal by 6% every year to keep up with inflation, the same ₹1 crore lasts about 27 years 6 months.
How much monthly income can I get from ₹1 crore through SWP?
Over 25 years at a 10% return, ₹1 crore can pay about ₹87,800 a month if the amount never changes, or about ₹52,700 a month to start if you raise it by 6% each year for inflation. The inflation-adjusted figure is the realistic one for retirement.
Is SWP taxable in India?
Only the gain inside each withdrawal is taxed, not the whole amount. For equity funds (and hybrid funds with 65% or more in equity), units held up to 12 months are taxed at 20%, and after that at 12.5% on long-term gains above ₹1.25 lakh a year. For debt funds bought on or after 1 April 2023, the gain is added to your income and taxed at your slab rate.
Is SWP better than a fixed deposit for monthly income?
For long retirements, usually yes. FD interest is fully taxed at your slab rate every year, while an SWP is taxed only on the gain portion of each withdrawal, often at 12.5% or nothing. An equity or hybrid SWP can also beat inflation over time. The trade-off is that fund values go up and down, so keep 2–3 years of withdrawals in a debt or liquid fund.
What return should I assume in an SWP calculator?
Use a conservative long-run figure: around 10–11% for diversified equity funds, 8–9% for balanced or hybrid funds, and 6.5–7.5% for debt funds. Assuming 12% or more makes your money look like it lasts far longer than it may.
What is a safe withdrawal rate for SWP in India?
For a retirement of 30 years or more, withdrawing about 3–3.5% of your corpus in the first year and increasing it with inflation is a commonly used safe range in India, because inflation here is higher than in the US where the 4% rule comes from. Read our safe withdrawal rate analysis.
Can I change or stop an SWP?
Yes. You can change the amount or date, pause, or cancel an SWP at any time through your fund house or platform. Withdrawals within the first year from equity funds may attract an exit load (often 1%), so many investors start their SWP after the first year.
How we calculate, and sources
The calculator simulates every month: the balance grows at the monthly equivalent of your annual return, then the withdrawal is paid. Because the whole amount is invested at one price, the gain in each withdrawal is exact, and tax is applied by holding period as described above. Tax rates follow the Income-tax Act and the Finance (No. 2) Act 2024; SCSS rates are those notified by the Ministry of Finance for 2026. Figures are estimates for planning, not investment, tax or legal advice. CorpusCalculator.com is not a SEBI-registered investment adviser. Read our disclaimer.