Withdraw regularly from a mutual fund and see how long your money lasts.
Value left at the end
| When | Withdrawn | Returns | Balance |
|---|
An SWP (Systematic Withdrawal Plan) lets you take a fixed amount out of a mutual fund at regular intervals, usually every month, while the rest of your money stays invested. It's often used for a regular income in retirement, from a lumpsum you've built up through a SIP or received at once.
Enter how much you invest, how much you'll withdraw each time and how often, the return you expect and for how long. Between withdrawals the balance keeps growing; each withdrawal is taken out at the end of its period. The calculator shows what's left at the end, how much you withdrew in total, and the balance year by year.
If the money would run out before the end, it tells you exactly when. You can also raise your withdrawal every year (by a percentage or a fixed amount) to keep up with inflation, and switch on today's money to see what's left in today's rupees.
Investing ₹10,00,000 and withdrawing ₹8,000 a month for 10 years, at an expected 10% a year:
Because you take out less than the fund earns, the balance actually grows. Raise the withdrawal to ₹15,000 a month at 8% and the money runs out after about 7 years 5 months.
A fixed withdrawal buys less every year as prices rise. Increasing it by, say, 6% a year keeps your spending power steady, but uses up the money faster. With the example above, a 6% yearly increase leaves about ₹6,47,242 after 10 years instead of ₹10,68,282, and the last monthly withdrawal is about ₹13,516.
There's no single safe number, because it depends on returns, inflation and how long the money must last. A common rule of thumb is to keep yearly withdrawals well below the return you expect, and test a lower return here to see the worst case.
No. Mutual fund returns vary, and a bad year early on can shorten how long the money lasts. This calculator assumes a steady return, so keep some margin.
Each withdrawal is a redemption of fund units. Only the gains part of each withdrawal is taxed, not your original money, and the rules depend on the fund type and how long you've held the units. Check the current rules or ask a tax adviser.
An FD's monthly interest is fixed and low-risk but taxed at your slab rate. An SWP from a mutual fund can earn more and may be more tax-efficient, but the value goes up and down with the market.