Core
Mutual Funds
Professionally managed, SEBI-regulated pooled investments across equity, debt and hybrid categories. You can start with a small monthly SIP and stop, pause or redeem when you need to.
Start from ₹500 a month
About Mutual Funds →Home › Calculators › SWP Calculator
A Systematic Withdrawal Plan turns a corpus into a monthly income. Most SWP calculators keep the withdrawal flat and ignore tax, which makes a corpus look far more durable than it is. This one raises your withdrawal every year with inflation and deducts tax on the gain portion of each redemption, then answers the question that actually matters: how long does the money last?
Your withdrawal is the amount you want in hand each month, and it rises on every anniversary by the inflation rate you set. The balance stays invested and compounds monthly. Tax is charged only on the gain portion of each redemption, with the cost basis falling proportionally as units are sold. The projection runs to a maximum of 60 years.
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Illustration only, based on the assumptions you enter. Returns are assumed steady; real markets are not. Tax rules change, and the rate that applies depends on the scheme category and holding period.
Same corpus, same starting withdrawal. Only the assumptions change.
| Year | Monthly withdrawal | Received this year | Tax paid | Balance | Balance in today's money |
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If the figure above is shorter than you expected, that is worth a conversation. Send us these numbers and we will look at the withdrawal rate, the scheme mix and the tax position together.
An SWP redeems just enough units each month to pay you a fixed amount. Everything you have not withdrawn stays invested and keeps earning. Whether your capital lasts depends on three things pulling against each other: what the corpus earns, how fast your withdrawal rises, and how much of each redemption goes to tax.
Set inflation to 0% and tax to 0% and you will often see a corpus that lasts indefinitely. That is the answer most SWP calculators give, and it is close to fiction. ₹30,000 a month buys noticeably less in fifteen years than it does today, so in practice a retiree has to withdraw more each year simply to stand still. The comparison bars above show the same corpus under all three assumptions, and the gap is usually startling.
This is the part most calculators get wrong. When you redeem units, only the gain portion is taxable, not the whole amount you receive. The calculator tracks your cost basis and reduces it proportionally as units are sold, then grosses up each withdrawal so that the amount arriving in your account is the amount you asked for.
Early on, most of your corpus is capital rather than gain, so very little tax is due. As the years pass and the gain portion grows, each withdrawal carries more tax, and the drag increases. That is why the tax effect is small at first and then accelerates.
If your withdrawal grows more slowly than the corpus earns, the balance keeps rising even while paying you. If it grows faster, you are drawing down capital — slowly at first, then quickly. With 8% expected return on ₹50 lakh, the corpus earns roughly ₹33,000 a month at the start. Set the withdrawal below that and the balance climbs; set it above and it falls.
If you are working out how large the corpus needs to be in the first place, start with the Retirement Calculator. To see what your withdrawal will need to become, use the Inflation Calculator.
Nidhish Investments, founded by Nimesh Vala, is an AMFI-registered Mutual Fund Distributor and an APMI-registered PMS Distributor working with families across Gujarat. We distribute three categories of SEBI-regulated products, and the right one depends on the capital you are working with and the risk you can carry.
Core
Professionally managed, SEBI-regulated pooled investments across equity, debt and hybrid categories. You can start with a small monthly SIP and stop, pause or redeem when you need to.
Start from ₹500 a month
About Mutual Funds →Newer category
A SEBI category positioned between Mutual Funds and PMS. SIF strategies have wider freedom in how they are run, including the use of derivatives, and carry higher risk than conventional Mutual Funds.
Minimum ₹10 lakh
About SIF →Larger portfolios
Securities are held in your own demat account and managed on your behalf by a SEBI-registered portfolio manager, against a defined strategy rather than a pooled scheme.
Minimum ₹50 lakh
About PMS →Because most calculators keep the withdrawal flat and ignore tax. Set inflation and tax to 0% here and you will get the same optimistic answer they do. The difference is not a different formula; it is a more honest set of assumptions.
Each withdrawal is a redemption of units. Only the capital gain portion is taxable, not the whole amount you receive, and the rate depends on the scheme category and how long those units were held. This treatment is usually more favourable than interest income, but you should confirm your own position with a tax professional.
The default of 12.5% reflects the long-term capital gains rate on equity-oriented schemes. Debt-oriented schemes are taxed differently and are generally added to your income at your slab rate, so someone in the highest slab would enter a much higher figure. Surcharge and cess are not included. If you are unsure, run it at both a low and a high rate and see how much the answer moves.
A common rule of thumb is 4% to 6% of the corpus per year, but a rule of thumb is not a plan. Use the calculator instead: raise the withdrawal until the corpus stops lasting as long as you need it to, then step back from that edge. The point at which the number falls off a cliff is more informative than any percentage.
Some costs do fall in later retirement, such as travel. Medical costs usually rise, and they tend to inflate faster than the general index. The two do not reliably cancel out. Most people are better served by assuming their spending keeps pace with inflation and treating any underspend as a margin of safety.
The withdrawals simply stop when there are no units left. The calculator tells you the exact year and month that would happen under your assumptions. If that date arrives before you expect to need the income to end, either the withdrawal is too high, the corpus is too small, or the plan needs another source of income alongside it.
Statutory disclosures and risk disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Nidhish Investments is an AMFI-registered Mutual Fund Distributor holding ARN-364347, and an APMI-registered Portfolio Management Services Distributor holding APRN-10163. We act solely as a distributor of investment products. We are not registered with SEBI as an Investment Adviser and do not provide investment advice, financial planning or portfolio management services.
This calculator is provided for illustration only. It uses the assumptions you enter and does not constitute a projection or guarantee of returns. It does not account for taxes, exit loads, expenses or changes in regulation. Past performance of any scheme, strategy or portfolio manager is not indicative of future results, and no returns are assured or guaranteed.
As a distributor, Nidhish Investments receives commission or brokerage from Asset Management Companies and portfolio managers on investments made through us. Details of commission earned on any product will be disclosed to you on request. Investors are advised to consult their own tax and legal professionals before investing. Registration status can be independently verified on the AMFI and APMI websites.