SWP Calculator: Plan Your Monthly Pension (2026)

The SWP (Systematic Withdrawal Plan) Calculator is the ultimate tool for generating a regular monthly 'salary' from your mutual fund investments. Instead of placing your retirement money in low-yielding [Fixed Deposits (FDs)](/calculator/fd), an SWP allows your core corpus to stay invested in the market, fighting inflation, while simultaneously paying you a fixed monthly income.

This calculator determines exactly how much you can safely withdraw every month and crucially projects the exact year your corpus will deplete if you over-withdraw.

How Systematic Withdrawals Work

An SWP works opposite to a SIP. Every month, the Asset Management Company (AMC) sells a specific number of mutual fund units to generate cash, transferring your requested amount directly to your bank account.

• Corpus Growth: If your mutual fund generates a 10% return and you only withdraw 6% a year, your total corpus actually GROWS while simultaneously paying you an income.
• Corpus Depletion: If you demand an aggressive 12% withdrawal rate from a fund returning 10%, your principal will bleed every month and eventually hit zero.
• Tax Efficiency: Because an SWP withdrawal represents a mix of your own principal and capital gains, the tax burden is drastically lower than fixed deposit interest.

Example: The 8% Withdrawal Trap vs the 6% Safe Rate

SWP vs Bank FD for Retirement

Why modern retirees avoid Fixed Deposits:

Frequently Asked Questions