SWP Calculator India
Monthly Income, How Long It Lasts & Tax
See how long a systematic withdrawal plan lasts, what is left at the end, and the capital gains tax on each year's withdrawals, for equity or debt mutual funds.
Read the full answer — method, rates and figures
Quick answer: A Systematic Withdrawal Plan (SWP) redeems a fixed amount from a mutual fund every month. At an assumed 10% annual return, ₹1 crore supports about ₹87,850 a month for 25 years before running out (no yearly increase).
Only the gain inside each withdrawal is taxed: for equity-oriented funds, 20% short-term within 12 months (s.111A) and 12.5% long-term on gains above ₹1,25,000 a year (s.112A), plus 4% cess; debt-fund units bought on or after 1 April 2023 are taxed at slab rate (s.50AA). No TDS for resident investors.
Returns are assumptions, not forecasts. Source: incometaxindia.gov.in (verified 23 Sep 2026).
To last exactly 20 years at 9%, the level withdrawal is about ₹43,863 a month.
Money lasts
20+ years
does not run out
Total withdrawn
₹72.00 lakh
over 20 years
Left at the end
₹88.57 lakh
after 20 years
Tax on gains
₹2.07 lakh
2.9% of withdrawals
What your SWP could give you
7-day free trial
Last reviewed 7 October 2026 by the Richify AI agent team.
Reviewed by Pepper, Richify's AI Financial Architect — an AI author, presented as one.
This is the textbook answer. Want to see this calculated against your actual accounts?
Connect them to Richify →Your SWP is one line of your retirement plan
Richify tracks your mutual funds, FDs, home and foreign accounts together, so you can see how long your whole net worth lasts, not just one fund.
See my full pictureHow it works
Each month the fund grows at the monthly equivalent of your assumed return, then sells enough units to pay your withdrawal. The calculator tracks three things:
- Corpus: what is still invested after each withdrawal, and the month it runs out, if it does.
- Gain inside each withdrawal: units sold × (today's NAV − purchase NAV). Early on this is a small slice of each payment, so the taxable amount is low.
- Tax: equity gains split at the 12-month mark into short-term (20%) and long-term (12.5% above ₹1,25,000 a year), plus 4% cess; debt-fund gains at your slab rate.
A constant return is a simplification. Real markets can fall in the first years of withdrawals, and selling units at low prices shortens how long the money lasts. Treat the result as a planning estimate and keep a margin.
How much monthly income can ₹1 crore give through SWP?
At an assumed 10% a year, ₹1 crore supports about ₹87,850 a month for 25 years before it runs out. The table shows the level monthly withdrawal that takes ₹1 crore to zero over each period. Withdraw less and the corpus lasts longer or leaves a balance. Figures are before tax, and they assume a steady return that no fund delivers.
| Lasts | 8% return | 10% return | 12% return |
|---|---|---|---|
| 15 years | ₹93,961 | ₹1,04,839 | ₹1,16,099 |
| 20 years | ₹81,915 | ₹93,664 | ₹1,05,862 |
| 25 years | ₹75,342 | ₹87,850 | ₹1,00,818 |
| 30 years | ₹71,440 | ₹84,589 | ₹98,164 |
Monthly withdrawal from ₹1 crore, no yearly increase. Scale in proportion: ₹50 lakh supports half.
How is SWP taxed in India?
Only the gain inside each withdrawal is taxed. In the first years, most of every payment is your own money coming back, so the tax is small. Equity-oriented funds split the gain at 12 months: short-term at 20%, long-term at 12.5% on gains above ₹1,25,000 a year (sections 111A and 112A), plus 4% cess. Debt funds bought on or after 1 April 2023 are taxed at your slab rate on every rupee of gain, however long you hold them (section 50AA). There is no TDS on redemptions for resident investors.
Example: ₹50 lakh in an equity fund at an assumed 10%, withdrawing ₹30,000 a month (₹3.6 lakh a year). In year 1 the gain inside those withdrawals is ₹17,985, all short-term, so the tax is ₹3,741. In year 2 the gain is ₹49,078, all long-term and inside the ₹1.25 lakh exemption, so the tax is ₹0. The same ₹3.6 lakh received as FD interest in the 30% slab would cost ₹1,12,320 in tax every year.
That comparison is not like for like: an FD pays interest on money that stays intact, while an SWP returns your own principal and depends on the market. See what a deposit earns after tax with the FD calculator. If the money is still to be saved, a recurring deposit builds it at a fixed rate; the RD calculator shows what a monthly RD, including the 5-year Post Office RD, pays at maturity. Work out the tax on a one-off redemption with the equity capital gains calculator, and work out the tax on a one-off redemption with the equity capital gains calculator.
SWP for retirement income
An SWP is a common way to turn a retirement corpus into a monthly income without buying an annuity. Size the corpus first with the retirement calculator or the FIRE calculator, then use this page to test how long a given withdrawal lasts. One common approach is to hold a year or two of withdrawals in a debt or liquid fund, run the SWP from that, and refill it from equity when markets are up, so a fall does not force you to sell equity units at low prices. Use the step-up field to see how a yearly increase for inflation changes the picture.
Primary sources, verified 23 September 2026: Income Tax Department — Income-tax Act, 1961 ss. 111A, 112A and 50AA (as amended to 2025, including the Specified Mutual Fund definition effective 1 April 2026). Returns are assumptions, not forecasts. Education only, not investment or tax advice.
FY 2026-27 is Tax Year 2026-27. The Income-tax Act, 1961 stands repealed on 01.04.2026, and income earned from that date falls under the Income-tax Act, 2025, which also replaces the "previous year / assessment year" pair with the single term "tax year". Section numbers on this page are the familiar 1961 ones, because that is what taxpayers, banks and brokers still use and search for; the 2025 Act renumbers them. Budget 2026 left slabs, cess, surcharge and the rebate unchanged. General information, not personalised tax advice — confirm with your CA.
How to use this calculator
- Enter the lump sum you will invest, or already hold, in the fund you will withdraw from.
- Enter the monthly amount you want to withdraw, and an optional yearly step-up to keep pace with rising expenses.
- Enter an assumed average annual return. This is an assumption, not a forecast: real returns vary from year to year.
- Choose equity-oriented or debt fund, and your tax slab (used for debt-fund gains).
- Read how long the money lasts, what is left at the end, and the tax on the gains you withdraw each year.
❓ Frequently Asked Questions
What is an SWP in mutual funds?
A Systematic Withdrawal Plan redeems a fixed amount from your mutual fund on a set date every month (or quarter). The fund sells just enough units at that day's NAV to pay you, and the rest of the money stays invested.
If the fund earns more than you withdraw, the corpus keeps growing; if you withdraw more, it runs down, and the calculator shows when.
How much monthly income can ₹1 crore give through SWP?
It depends on how long it must last and what the fund earns. At an assumed 10% a year, ₹1 crore supports about ₹87,850 a month for 25 years before running to zero, with no annual increase.
Withdraw less and it lasts longer, or leaves a balance. Returns are not guaranteed, and a bad market early in the withdrawal years shortens how long the money lasts, so leave a margin.
How is SWP from an equity mutual fund taxed?
Only the gain inside each withdrawal is taxed, not the whole payout: most of an early SWP payment is your own money coming back. Units held 12 months or less give short-term gains taxed at 20% (section 111A).
After 12 months, long-term gains above ₹1,25,000 a year are taxed at 12.5% (section 112A). Both carry 4% cess.
There is no TDS on redemptions for resident investors; you pay the tax when you file.
How is SWP from a debt fund taxed?
Units of a debt fund bought on or after 1 April 2023 are treated as short-term whatever the holding period (section 50AA), so every rupee of gain is added to your income and taxed at your slab rate. From 1 April 2026 this covers funds investing more than 65% in debt and money-market instruments.
Units bought before 1 April 2023 follow the older rules, which this calculator does not model.
Is SWP better than FD interest for monthly income?
For tax, usually yes: an FD's interest is taxed in full at your slab every year, while an SWP is taxed only on the gain portion of each withdrawal, and equity gains get the ₹1.25 lakh yearly exemption. The trade-off is certainty: the FD's rate is fixed, but an SWP's corpus rises and falls with the market, and the fund can have an exit load if you redeem early.
Is there an exit load on SWP withdrawals?
Exit load is set by each fund and is charged on units redeemed within its exit-load period, often the first year for equity funds. Because an SWP redeems the oldest units first, early withdrawals from a recent investment can attract it.
Check your scheme's document; this calculator does not deduct exit load.
More free financial calculators
Income Tax Calculator
New vs old regime tax under the latest slabs.
📈SIP Calculator
Project your mutual-fund SIP corpus over time.
🔒PPF Calculator
15-year PPF maturity at the current 7.1% rate.
🏛️NPS Calculator
Pension corpus plus 80CCD(1B) tax savings.
🏠HRA Calculator
How much house-rent allowance is tax-exempt.
🏦Home Loan EMI
EMI, total interest, and amortisation schedule.
Further Reading
Your SWP is one line of your retirement plan
Richify tracks your mutual funds, FDs, home and foreign accounts together, so you can see how long your whole net worth lasts, not just one fund.
See my full pictureSee how long your money lastsPlan your income
Funds, FDs, property and PF in one net worth