Calculators / Retirement
Retirement
SWP Calculator India
See how long a corpus lasts when you draw a monthly income from it, and find the rate that does not run dry. In retirement the withdrawal rate matters more than the size of the pot.
Draw 6% a year from ₹1 crore and it runs dry in about 21 years. Draw 3% and the same corpus lasts past 55. The withdrawal rate, not the size of the pot, decides whether your money outlives you.
About the SWP calculator
A systematic withdrawal plan pays you a fixed amount from a corpus every month while the rest stays invested. It is how many retirees turn a lump sum into a monthly income. Below the tool is how much you can safely draw, why the rate decides everything, and how to keep the pot working while it pays you.
| Monthly withdrawal | Starting rate | The corpus lasts |
|---|---|---|
| ₹25,000 | 3% | about 55 years |
| ₹33,300 | 4% | about 35 years |
| ₹41,700 | 5% | about 26 years |
| ₹50,000 | 6% | about 21 years |
Same corpus, same market. The draw rate alone decides whether it outlives you or runs dry mid-retirement.
Your withdrawal by retirement stage
How much can I safely withdraw from a corpus?
About 3% of the corpus a year is a sturdy starting point in India, which is ₹25,000 a month on ₹1 crore. Draw more and the pot can run dry mid-retirement; draw around 3% and it tends to outlast you. The tool shows your starting rate and the 3% safe figure side by side, so you can see how far your planned withdrawal sits from the safe one.
How does the calculator work it out?
It runs the corpus month by month. It grows the balance at the honest monthly rate, subtracts your withdrawal, and raises that withdrawal for inflation every year, until the money either runs out or reaches your horizon. Then it reports how long the corpus lasts, the balance left at your horizon, and the total you drew along the way.
Why does the withdrawal rate matter so much?
Because you keep drawing, and raising the draw for inflation, while the market moves under you. On the same ₹1 crore at 8%, a 3% draw lasts about 55 years and a 6% draw only about 21. A single percentage point on the starting rate changes the outcome by decades, which is why the rate, not the corpus, is the number to get right.
| Corpus | 3% safe monthly |
|---|---|
| ₹50 lakh | ₹12,500 |
| ₹1 crore | ₹25,000 |
| ₹2 crore | ₹50,000 |
| ₹3 crore | ₹75,000 |
A floor to start from: draw about 3% of the corpus a year and it keeps working while it pays you. Above that, watch the horizon closely.
Is 3% or 4% the right rate for India?
The old 4% rule comes from US data. India's higher inflation and shorter market history make about 3 to 3.5% a sturdier starting point for a 30-year retirement. The safe withdrawal rate is the share you can draw each year without running out, and the 3% rule guide walks through why 3% is the safer anchor here.
What return should I assume while drawing down?
A balanced 7 to 8%, not aggressive equity, because you cannot ride out a long fall while you are withdrawing. What actually sustains the withdrawals is the real return after inflation, which is why a high headline return still runs dry when inflation is high. Set the return to a portfolio you could actually hold through a bad year.
Why do some calculators say the money lasts longer?
Because many divide the annual return by 12 to get the monthly rate, a shortcut that assumes faster growth than you really get, so they overstate how long the corpus lasts. This calculator uses the honest monthly rate, written (1+r)^(1/12) minus 1, so the longevity it shows is the one you can plan on.
Does my income keep up with inflation?
Yes. The calculator raises your withdrawal each year by the inflation you set, so your income holds its buying power as prices rise. That rising draw is exactly why a high starting rate empties the corpus so fast: a 6% draw is not 6% for long, it climbs with inflation every year while the pot shrinks.
What is sequence-of-returns risk?
It is the danger of a bad market in the first years of retirement, while you are withdrawing. Selling units cheap early does lasting damage, because those units never recover to compound later. The usual defence is a buffer of two to three years of expenses in safe assets, so you can pause selling equity during a fall.
SWP or an annuity?
An SWP keeps your capital and its growth in your hands, with flexibility to change the amount, but it carries market risk. An annuity hands over the capital for a guaranteed but usually lower income for life. Many retirees use some of each: an annuity to cover the essentials, an SWP for everything above them.
How do I set up an SWP, and how is it taxed?
You instruct your mutual fund to redeem a fixed amount on a set date each month, ideally from a balanced or hybrid fund rather than pure equity or a bank deposit. Each withdrawal is a partial redemption, so only the gain portion of it is taxed, not the whole amount, which usually makes an SWP more tax-efficient than the fully taxed income from many guaranteed plans.