See how long your investment corpus will last if you withdraw a fixed amount every month, or work out how much you can safely withdraw for a target duration.
Each month, your corpus grows by the assumed monthly return rate, then your withdrawal amount is deducted. This continues month by month until the corpus is depleted, or indefinitely if your withdrawal rate is low enough that growth consistently outpaces withdrawals — in which case the corpus could theoretically last forever, which this calculator will indicate.
This is a simplified model assuming a constant return every month — real mutual fund returns fluctuate significantly, and a market downturn early in your withdrawal phase can deplete a corpus much faster than this steady-state calculation suggests, even if the long-term average return matches your assumption.
SWP lets you withdraw a fixed amount from a mutual fund investment at regular intervals (usually monthly), while the remaining corpus continues to stay invested and potentially grow. It's commonly used by retirees as a substitute for a monthly pension.
SWP from an equity or hybrid mutual fund can offer better tax efficiency and growth potential than FD interest, but carries market risk — your corpus could shrink faster than expected in a prolonged downturn. FD interest is safer but typically lower and fully taxable at your slab rate.
Yes — if your withdrawal rate exceeds your fund's actual returns for a sustained period, especially during a market downturn early in your withdrawal phase, your corpus can deplete faster than a simple average-return calculation would suggest. This is called sequence-of-returns risk.