Worked example
Example with the default numbers — change them above.
Your age today: 30 · Monthly SIP: ₹25,000 · Yearly SIP increase: 10% · Assumed return while investing: 12% · Age when withdrawals start: 55 · Monthly withdrawal in today's money: ₹1,00,000 · Assumed return while withdrawing: 9% · Inflation per year: 6% · Money should last until age: 90
A ₹25,000 SIP builds ₹9.84 Cr by age 55; withdrawing ₹1,00,000 a month in today's money, your money lasts until age 83. ₹87,700 a month would last to 90.
| Money lasts until | Age 83 · 28 yrs 4 mo of withdrawals |
|---|---|
| Corpus at age 55 | ₹9.84 Cr · ₹2.29 Cr in today's money |
| Monthly withdrawal at 55 | ₹4,29,187 · ₹1,00,000 in today's money, rising 6% a year |
| Sustainable monthly withdrawal | ₹87,700 · In today's money; the most that lasts to age 90 |
| Total you invest | ₹2.95 Cr · Growth over the whole plan: ₹33.27 Cr |
How the SIP + SWP Calculator works
- Your SIP is invested at the start of every month and raised by your step-up once a year, growing at the return you expect while investing.
- At the age withdrawals start, the SIP stops and the corpus switches to the return you expect while withdrawing.
- Your monthly income is entered in today's money, so it is first inflated to that age, then raised by inflation every year.
- Each month the withdrawal is taken out first and the rest grows; the money lasts until the first month it cannot pay in full.
- The calculator also searches for the highest income, in today's money, that lasts until your chosen age.
Two phases, one balance
Investing: Balance = (Balance + SIP(k)) × (1 + m1), SIP(k) = SIP × (1 + s)^(k − 1)
Withdrawing: Balance = (Balance − W(k)) × (1 + m2), W(k) = W × (1 + i)^(n + k − 1)
m1, m2 = monthly equivalents of the two yearly returns
s = yearly SIP increase; i = inflation; k = year number in that phase
W = monthly income in today's money; n = years until withdrawals startAssumptions and limits
- Returns are the same every year within each phase; real markets rise and fall.
- SIPs and withdrawals happen at the start of each month; increases apply once a year.
- Fund expenses are taken as already reflected in the returns you enter. Tax on gains and exit loads are ignored unless you enter a tax-and-costs drag. The drag is a rough stand-in: real tax falls only on the gain part of each withdrawal, and here it also lowers growth during the SIP years, when nothing is sold, which makes the result cautious.
- Yearly returns are converted to monthly rates that compound to exactly the yearly figures. Calculators that divide the yearly rate by 12 show higher results for the same inputs.
- Inflation is constant, and the income keeps rising with it until the end.
- This is a planning estimate, not a recommendation of any fund or product.
Frequently asked questions
What is a SIP SWP calculator?
A SIP SWP calculator plans the two stages of investing for income. First, a monthly SIP builds a corpus over your working years. Then a systematic withdrawal plan (SWP) pays you a monthly amount from that corpus. Combining both shows whether the SIP you can afford today is enough for the income you want later, and at what age the money would run out.
How much SIP do I need for a ₹1 lakh monthly SWP?
It depends on your age, returns and how long the income must last. With this page's defaults, a ₹25,000 SIP raised 10% a year for 25 years at 12% builds about ₹9.8 crore by 55. Withdrawing ₹1 lakh a month in today's money, about ₹4.3 lakh at 55, lasts until about 83. Around ₹87,700 a month in today's money would last to 90.
Why is the withdrawal entered in today's money?
Because ₹1 lakh in 25 years will not buy what ₹1 lakh buys now. At 6% inflation, prices roughly quadruple in 25 years. Entering the income in today's rupees lets you think in terms of your current lifestyle; the calculator converts it to the rupees of the year withdrawals start and keeps raising it with inflation after that.
Should I assume a lower return after retirement?
Usually, yes. Many people move part of their corpus from equity to debt or hybrid funds near retirement, so that a market fall does not force them to sell equity at low prices. That lowers the expected return. This calculator lets you set a separate return for the withdrawal years, and the default is 3 points lower than the SIP years.
What does it mean if withdrawals exceed returns in the first year?
It means the corpus earns less in a year than you take out, so the balance falls from the start and keeps falling as withdrawals rise with inflation. That is not automatically wrong, since spending down a corpus is the point, but it shortens how long the money lasts. If you see this warning, check the age your money lasts until.
Can I run an SWP from the same mutual fund as my SIP?
Yes. Most fund houses let you register an SWP on an existing folio, and the monthly amount is paid by redeeming units. Whether to stay in the same fund is a separate choice; some investors switch to a less volatile fund before withdrawals begin. Each switch is a redemption, so check the tax and any exit load before moving money.
Is my SWP income taxed?
Each SWP payment sells fund units, the earliest bought first, and only the gain in those units is taxed, not the whole payment. In equity funds, gains on units held up to 12 months are taxed at 20%, and on longer-held units at 12.5% on long-term gains above ₹1.25 lakh a year (sections 196 and 198 of the Income-tax Act, 2025). Gains on debt funds bought from April 2023 are taxed at your slab rate. Rules change with each Budget, so check before relying on this.
Sources
- Ministry of Statistics and Programme Implementation: consumer price index (inflation) data
- Reserve Bank of India: inflation, interest-rate and household-finance statistics
- AMFI: mutual fund data and investor education (SIP and SWP basics)
- SEBI: investor education on market risk
- Income Tax Department: Income-tax Act, 2025, section 198 – long-term capital gains on equity funds (old section 112A)
- Income Tax Department: Income-tax Act, 2025, section 196 – short-term capital gains on equity funds (old section 111A)
Logic and rates last verified on .
Next step: related calculators
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Retirement & FIRE SWP Calculator
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Investing Step-Up SIP Calculator
How much more will I build if I raise my SIP every year?
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Retirement & FIRE Retirement Corpus Calculator
How much money do I need when I retire?
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Retirement & FIRE FIRE Calculator
When can I retire early, and how much do I need?
Guides that go deeper
See worked examples
How many years ₹25 lakh to ₹5 crore lasts at different monthly withdrawals, with inflation built in.
- How long will ₹25 lakh last with ₹10,000 a month SWP? — Lasts 32 yrs 5 mo
- How long will ₹25 lakh last with ₹14,000 a month SWP? — Lasts 19 yrs 10 mo
- How long will ₹25 lakh last with ₹17,000 a month SWP? — Lasts 15 yrs 5 mo