Plan your SWP withdrawals

Name: Salary Calculator
Brand: Superworks
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See how long your corpus lasts if you withdraw a fixed amount each month while the remaining balance keeps earning returns.

Realistic Returns Live Calculation Visual Breakdown

Your withdrawal plan

Each month: corpus earns interest first, then your withdrawal is taken.

Initial corpus

Monthly withdrawal

Expected return (% p.a.)

Withdrawal period (years)

Balance at end

₹4.42 L

After 15 years of withdrawing ₹10,000 / mo

Initial corpus₹10.00 L

Monthly withdrawal₹10,000

Total withdrawn₹18.00 L

Return rate8% p.a.

Period15 years

How SWP works

A Systematic Withdrawal Plan lets you draw a fixed monthly income from your mutual fund or any invested corpus. The remaining balance keeps earning returns.

01
Build a corpus
First grow a corpus via SIP/lumpsum. SWP starts when accumulation is done.
```
corpus = 1000000
// e.g. via SIP
```
02
Set withdrawal
Pick a sustainable monthly amount — typically 4-6% annual withdrawal rate of corpus.
```
withdrawal = 10000/mo
// 1.2L/yr = 12% — risky
```
03
Track depletion
Each month: balance grows by return rate, then withdrawal is taken. Calculator shows months till depletion.
```
balance = balance × (1+r) − withdrawal
```

FormulaEach month: balance = balance × (1 + r/12) − withdrawalA withdrawal rate of 4% annually (₹4K/mo on ₹10L corpus) is generally considered sustainable.

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Regulator

SEBI MF Regulations

Withdrawal plan disclosure norms for mutual funds.

Industry Body

AMFI

AMFI definitions and SWP industry practices.

Research

Bengen 4% Rule

Trinity Study foundation for safe withdrawal rate theory.

Tax Reference

ClearTax SWP Tax

STCG / LTCG implications on each SWP withdrawal.

Research

Value Research

SWP historical analysis and corpus longevity studies.

Theory

Investopedia SWP

Theory of systematic withdrawal vs annuity-based income.

FAQs about SWP

What's the safe withdrawal rate?

The "4% rule" suggests withdrawing 4% of your corpus annually — historically sustainable for 30+ years. For Indian markets and inflation, 3-3.5% may be safer. 6%+ withdrawal rates risk corpus depletion before life expectancy.

SWP vs FD monthly interest — which is better?

SWP from equity/hybrid funds has higher long-term return potential but with volatility. FD monthly interest is guaranteed but typically lower (~7%) and fully taxable. Many retirees use a mix.

Is SWP income taxable?

Yes — each withdrawal is treated as a partial redemption. The gain portion is taxed: equity gains LTCG > 12 months at 10% (over ₹1L p.a.); debt funds at slab rate. Tax-efficient withdrawal strategies can lower the impact.

Can I change the SWP amount mid-stream?

Yes. Most fund houses allow you to modify or pause SWP anytime via the online portal — typically takes 7-15 days to reflect. You can also do step-up SWPs that increase each year.

What if markets crash during SWP?

Risk is high. If you withdraw during a market downturn, you sell at a low — accelerating corpus depletion. Mitigation: keep 2-3 years of expenses in liquid/debt funds and run SWP only from there during downturns.

Should I do SWP from equity or debt funds?

Debt funds offer stability but lower returns. Equity gives higher long-term returns but volatility. A common strategy: use balanced/hybrid funds for SWP, or use debt for short-term SWP and equity for long-term withdrawal needs.

What's the difference between SWP and dividend option?

SWP gives you control: a fixed amount you choose. Dividends are declared by the fund, not always predictable, and reduce NAV. SWP is generally more tax-efficient than dividend payouts.

Can I start SWP immediately after lumpsum investment?

Yes, but each redemption within 12 months is treated as STCG (15% for equity) and you may face exit load. Best practice: wait at least 1 year before starting SWP from equity funds.

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Plan your SWP withdrawals

Your withdrawal plan

How SWP works

Build a corpus

Set withdrawal

Track depletion

SEBI MF Regulations

AMFI

Bengen 4% Rule

ClearTax SWP Tax

Value Research

Investopedia SWP

FAQs about SWP

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