Systematic Withdrawal Engineering
Project your legacy and cash flow longevity with precision-engineered liquidation modeling.
Parameters
50,00,000
$
40,000
$
Inflation Step-Up
8.5%
25 Yrs
Corpus Longevity
Sustained beyond 25 yrs
Total Payout
$
Generated over 25 yearsLegacy Corpus
$
Final remaining balanceCorpus Trajectory
Projected Cash Flow Matrix
| Year | Annual Income | Closing Balance |
|---|---|---|
Year 1 | $5,760,000 | $4,942,806 |
Year 2 | $11,520,000 | $4,880,556 |
Year 3 | $17,280,000 | $4,812,804 |
Year 4 | $23,040,000 | $4,739,064 |
Year 5 | $28,800,000 | $4,658,805 |
Year 6 | $34,560,000 | $4,571,453 |
Year 7 | $40,320,000 | $4,476,379 |
Year 8 | $46,080,000 | $4,372,902 |
Year 9 | $51,840,000 | $4,260,278 |
Year 10 | $57,600,000 | $4,137,699 |
Year 11 | $63,360,000 | $4,004,285 |
Year 12 | $69,120,000 | $3,859,079 |
Year 13 | $74,880,000 | $3,701,038 |
Year 14 | $80,640,000 | $3,529,027 |
Year 15 | $86,400,000 | $3,341,813 |
Year 16 | $92,160,000 | $3,138,050 |
Year 17 | $97,920,000 | $2,916,276 |
Year 18 | $103,680,000 | $2,674,900 |
Year 19 | $109,440,000 | $2,412,188 |
Year 20 | $115,200,000 | $2,126,255 |
Year 21 | $120,960,000 | $1,815,048 |
Year 22 | $126,720,000 | $1,476,333 |
Year 23 | $132,480,000 | $1,107,679 |
Year 24 | $138,240,000 | $706,439 |
Year 25 | $144,000,000 | $269,733 |
About SWP Calculator — Retirement Withdrawal Planning Guide
Understand how to use Systematic Withdrawal Plans to fund your retirement with steady, tax-efficient monthly income.
How a Systematic Withdrawal Plan Works
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount every month from your mutual fund corpus, while the remaining money stays invested and continues to grow. It is one of the most tax-efficient ways to generate regular retirement income from mutual funds.
Unlike a fixed deposit that pays interest on the full amount, an SWP only triggers capital gains tax on the gain portion of each withdrawal — making it significantly more efficient for long-term retirement planning.
How Long Will Your Corpus Last?
Your corpus longevity depends on three factors: withdrawal amount, return rate, and corpus size. As a general rule:
- Sustainable withdrawal: If your annual withdrawals are less than your annual returns, the corpus grows over time.
- The 4% Rule: Withdrawing 4% of your corpus per year is widely considered safe for a 30-year retirement horizon.
- Inflation impact: A step-up SWP that increases withdrawals by 5–6% annually helps maintain purchasing power.
Retirement Planning for Beginners
by Finance Expert
A practical guide to planning sustainable income for your retirement years.
Get the BookQuestions & Answers
What is a Systematic Withdrawal Plan (SWP)?
An SWP (Systematic Withdrawal Plan) is a facility offered by mutual funds that allows you to withdraw a fixed amount at regular intervals (monthly, quarterly) from your invested corpus. Unlike selling all your units at once, SWP keeps the remaining corpus invested, allowing it to continue growing while you receive a steady income.
How long will my corpus last with an SWP?
Your corpus longevity depends on three factors: the initial corpus size, the monthly withdrawal amount, and the return rate of the underlying investment. If your corpus earns more than your annual withdrawal rate, it lasts indefinitely. For example, a ₹1 crore corpus earning 9% annually can sustain a ₹50,000/month withdrawal (6% annual withdrawal rate) indefinitely — the corpus keeps growing.
What is the safe withdrawal rate for SWP in retirement?
A withdrawal rate of 3–4% of your total corpus annually is generally considered sustainable for long-term retirement (30+ years). For example, on a corpus of $1,000,000 earning 8% p.a., you can safely withdraw $3,000–4,000 per month while the corpus continues to grow. Higher withdrawal rates deplete the corpus faster.