SWP for Retirement Calculator India — Tax-Efficient Monthly Income

Last updated: 29 April 2026 Reviewed by Deepa Krishnan, CFP

An **SWP for retirement** uses your mutual fund corpus to generate monthly income through systematic withdrawals. Unlike an annuity (which is locked-in for life), SWP keeps your corpus invested and growing, making it a more flexible and tax-efficient source of retirement income. Long-term equity SWP gains are taxed at a lower LTCG rate vs FD interest at slab rate.

Retirement Corpus (₹)

Monthly Withdrawal Amount (₹)

Expected Annual Return (% p.a.)

Years Corpus Will Last —

Total Amount Withdrawn —

Annual Withdrawal Rate —

Monthly Withdrawal —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹1 crore corpus — ₹75,000/month SWP at 8%

₹1 crore at 8%, withdrawing ₹75,000/month (9% annual withdrawal rate): corpus lasts approximately 18 years. Reducing to ₹60,000/month: lasts 25 years. At ₹50,000/month (6% withdrawal rate): corpus lasts 30+ years and may actually grow.

₹2 crore corpus — sustainable withdrawal

At ₹2 crore with 8% return: sustainable withdrawal = ₹1,33,000/month (annual return = annual withdrawal, corpus never depletes). More conservatively at 6%: ₹1,00,000/month. Build corpus to a level where desired lifestyle = 6% of corpus × 1/12.

Frequently Asked Questions

What withdrawal rate makes my corpus last forever?

At 8% return: annual withdrawal of 8% of corpus depletes corpus exactly at the end of the first year (oversimplified). Realistically, with monthly compounding and balanced SWP, a withdrawal rate equal to the return rate is approximately sustainable indefinitely. SWP of 6–7% of corpus typically lasts 30+ years at 8% return.

How does inflation affect SWP sustainability?

If you fix monthly withdrawal at ₹75,000 while inflation runs at 6%, your real purchasing power halves in 12 years. Consider a step-up SWP — increase withdrawal by 5–6%/year. This reduces initial withdrawal but maintains lifestyle quality. The trade-off: corpus depletes faster.

What funds are best for SWP?

For retirement SWP: balanced advantage funds (automatic asset allocation), hybrid funds, or a combination of equity + debt. Avoid withdrawing from equity funds during market downturns — maintain 1–2 years of withdrawals in liquid funds as a buffer. This 'bucket strategy' protects against sequence-of-returns risk.

Is this calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. Calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all modern smartphones.