How an SWP works
You invest a lump sum in a mutual fund and withdraw a fixed amount every month. The rest stays invested and keeps earning. Each month, the balance grows by that month's return and then your withdrawal is taken out.
Balancenext month = Balance × (1 + r / 12) − Withdrawal
Will my money last?
- If yearly withdrawals are below the yearly returns, your corpus lasts indefinitely and may keep growing.
- If they're above, you slowly eat into the original amount, and the calculator shows when it runs out.
- Inflation raises living costs every year, so leave a margin or plan to increase withdrawals over time.
SWP vs FD interest for monthly income
With an SWP, only the gains part of each withdrawal is taxed, as capital gains. FD interest is fully taxed at your slab rate. That can make an SWP more tax-efficient for retirees, but equity and hybrid funds carry market risk.
Estimates only. Assumes a constant return. Real market returns vary, and a few bad years early on can shorten how long the money lasts.