Wealth Engine

SWP Calculator

Create your own pension. Calculate how much monthly income you can withdraw from your investments while keeping the principal intact.

Fact Checked
Verified by eCalcy Editorial Board
Last Updated: April 22, 2026
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Real-World Scenarios

Sample 1
₹1Cr Corpus (8% SWP)
₹66,000/mo

Sustainable lifestyle. With 12% returns, your principal actually grows even after withdrawing this much!

Sample 2
₹50L Bonus (5% SWP)
₹21,000/mo

A safe withdrawal rate that protects against market dips and long-term retirement stress.

Professional Strategy Insights

  • The Bucket Strategy: Keep 2 years of SWP in a Debt Fund and the rest in Equity. This prevents selling equity at a loss during a market crash.
  • Inflation-Adjusted SWP: Start low and increase your withdrawal by 5% every year to maintain the same purchasing power as costs rise.

Frequently Asked Questions

What is the safe withdrawal rate?

Wealth experts suggest 4% to 6% per annum for a 30-year retirement period to ensure the corpus is never depleted.

Is SWP tax-efficient?

Yes, much better than dividends or interest. Only the growth portion of each withdrawal is taxed (as LTCG/STCG), not the whole amount.

Mathematical Methodology

At eCalcy, transparency is our core principle. This SIP calculator utilizes the Future Value (FV) of Annuity Due formula with monthly compounding intervals (n=12). We account for compounding frequencies (Quarterly for FD, Monthly for SIP/EMI) to ensure high accuracy compared to official bank statements.

Formula Reviewed for 2026

Financial Disclaimer

Calculations provided by eCalcy are estimates for educational purposes only. They do not constitute financial advice. Fixed deposit rates and mutual fund returns are subject to market risks and bank policy changes.

Always consult a SEBI-registered advisor or certified CA before making investment decisions.

RBI Data Aligned
Formula-Based Math
Current Tax Rules Referenced

Ritesh Narang

Editorial Author

Lead Finance Researcher & Editorial Director, eCalcy

Financial technology and calculator design

Reviewed 2026

Reviewed: April 2026

Math basis
Published formulas
References
RBI / SEBI / IRS
Use case
Educational planning

eCalcy publishes calculator logic, methodology notes, and editorial pages so users can see the assumptions behind each result. The tools are for planning and education only, and critical financial decisions should still be checked against official sources or a licensed professional.

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