SWP Details
Corpus Lasts
Forever
Total Withdrawn
₹0
Remaining Corpus
₹10.0L
Effective Yield
10.0%
Enter your corpus, expected return rate, and monthly withdrawal. Find out how long your retirement savings will last with a Systematic Withdrawal Plan.
| Year | Withdrawal / Year | Corpus Remaining |
|---|
SWP (Systematic Withdrawal Plan) is a facility offered by mutual funds that allows investors to withdraw a fixed amount from their investment at regular intervals — typically monthly. The remaining corpus continues to earn returns at the specified rate. SWP is extremely popular for retirement income planning as it provides regular, predictable cash flow while the invested corpus keeps growing.
The key insight with SWP is the balance between the return your corpus earns and the amount you withdraw. If the monthly return earned (corpus × monthly rate) is greater than your monthly withdrawal, your corpus will actually grow over time. If withdrawals exceed returns, the corpus will shrink and eventually get exhausted.
For example: ₹50 lakh at 10% p.a. earns ₹41,667/month. If you withdraw ₹30,000/month, the remaining ₹11,667 is reinvested and your corpus grows indefinitely. If you withdraw ₹60,000/month, the corpus shrinks by ₹18,333/month and will be exhausted in about 14 years.
💡 Tip: A safe SWP withdrawal rate is generally considered to be 4% per year (the "4% rule"). For a ₹1 crore corpus, this means ₹4 lakh per year or ₹33,333 per month — well within sustainable withdrawal range at 10% returns.