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Plan your retirement withdrawals. Find out how long your corpus lasts — or what monthly income your savings can sustain.
| Year | Annual Withdrawal | Interest Earned | Corpus Remaining |
|---|
A Systematic Withdrawal Plan (SWP) lets you redeem a fixed amount from your mutual fund corpus every month. Unlike FDs that pay a fixed interest, SWP draws from both your capital and the returns, allowing the remaining corpus to keep earning. It's the most tax-efficient way to generate regular income from investments in India.
The monthly withdrawal is deducted from the corpus, and the remaining corpus continues to earn returns at the expected rate. The formula for the remaining corpus after n months is:
Balance(n) = P × (1 + r)ⁿ − W × [ (1 + r)ⁿ − 1 ] / r
Where P = initial corpus, r = monthly rate (annual rate ÷ 12), W = monthly withdrawal, n = number of months.
For retirement SWPs, conservative estimates are best. Balanced mutual funds (debt + equity hybrid) have historically returned 7–9% annually. Pure debt funds return 6–7%. Use 7–8% for a realistic retirement withdrawal plan. Equity funds can be more volatile — not ideal as the sole source for a SWP.
| Feature | SWP (Mutual Fund) | Fixed Deposit |
|---|---|---|
| Tax on returns | Only the gains portion of each withdrawal is taxed (lower effective tax) | Full interest taxable as income — TDS applies |
| Flexibility | Change or pause withdrawal amount anytime | Fixed — breaking FD has penalty |
| Returns | Market-linked; 7–12% typical | Fixed; 6.5–7.5% currently for senior citizens |
| Corpus growth | Remaining corpus can grow if returns > withdrawal rate | Principal is static, not growing |
| Risk | Market risk (NAV fluctuates) | Near-zero risk (insured up to ₹5L per bank) |
The globally recognised "4% rule" suggests withdrawing no more than 4% of your corpus annually for a 30-year retirement. For India, where returns are higher but inflation is also higher, a safe withdrawal rate of 5–6% per year is commonly cited. If you withdraw more than the return rate, your corpus will eventually deplete — this calculator shows you exactly when.
Disclaimer: This calculator is for informational purposes only and does not account for taxes, expense ratios, inflation, or individual circumstances. This is not financial advice. Please consult a SEBI-registered financial advisor before making investment decisions.
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