Question 1

What is a Systematic Withdrawal Plan (SWP)?

Accepted Answer

An SWP draws a fixed amount from an invested corpus at regular intervals while the remaining balance stays invested. It is the standard way to turn a lump sum - typically a retirement corpus - into a steady income stream.

Question 2

How does the SWP calculator work?

Accepted Answer

Given your corpus, expected annual return, and withdrawal period, it computes the fixed withdrawal the corpus can sustain so the balance reaches zero exactly at the end of the period, with the remaining money continuing to earn returns throughout.

Question 3

How much income can a corpus generate?

Accepted Answer

As a reference: a ₹50 lakh corpus at a 12% expected return sustains withdrawals of about ₹71,000 per month (₹8.5 lakh per year) for 10 years - roughly ₹85.2 lakh withdrawn in total, of which ₹35.2 lakh comes from returns earned along the way.

Question 4

Can I see monthly and annual schedules?

Accepted Answer

Yes. The withdrawal plan can be viewed month by month or summarized by year, showing the opening balance, amount withdrawn, returns generated, and closing balance for each period.

Question 5

Why is my total withdrawal more than what I invested?

Accepted Answer

Because the corpus keeps earning returns while you draw it down. The un-withdrawn balance compounds every month, so the total you withdraw over the full period exceeds the starting corpus - the gap is the returns generated.

Question 6

Are the results guaranteed?

Accepted Answer

No. The calculation assumes a constant return, while real market returns vary year to year - a sequence of poor early years can deplete a corpus faster than the average suggests. Treat the output as a planning estimate and keep a buffer.

Question 7

Does an SWP work outside mutual funds?

Accepted Answer

The math applies to any corpus earning a broadly steady return - retirement funds, deposits, or a portfolio you draw down manually. Only the tax treatment differs: mutual fund SWP withdrawals are taxed as capital gains, which is often more efficient than interest income.

Period	Opening balance	Withdrawn	Returns	Closing balance
2026	₹50,00,000	₹4,26,151	₹2,92,434	₹48,66,283
2027	₹48,66,283	₹8,52,303	₹5,59,684	₹45,73,664
2028	₹45,73,664	₹8,52,303	₹5,22,572	₹42,43,934
2029	₹42,43,934	₹8,52,303	₹4,80,754	₹38,72,386
2030	₹38,72,386	₹8,52,303	₹4,33,633	₹34,53,716
2031	₹34,53,716	₹8,52,303	₹3,80,535	₹29,81,948
2032	₹29,81,948	₹8,52,303	₹3,20,703	₹24,50,348
2033	₹24,50,348	₹8,52,303	₹2,53,283	₹18,51,328
2034	₹18,51,328	₹8,52,303	₹1,77,312	₹11,76,338
2035	₹11,76,338	₹8,52,303	₹91,706	₹4,15,741
2036	₹4,15,741	₹4,26,151	₹10,410	₹0

SWP Calculator

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