DhanPlanSWP Calculator India: How Much Can You Withdraw Monthly in Retirement?
By Saswata Subhra Sengupta · Published 2025-04-01 · Rates and rules checked 2026-10-02 · 9 min read
What is an SWP and How Does It Work?
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investments at regular intervals — typically monthly or quarterly. In retirement, an SWP acts like a pension: your corpus remains invested and earns returns, while you withdraw a set sum each month for living expenses.
The key advantage of an SWP over a lump-sum withdrawal is that the remaining corpus continues to grow. If your withdrawal rate is lower than your portfolio's return rate, your corpus can last indefinitely — or at least through your entire retirement.
The 4% Rule vs the 3% Rule in India
The 4% rule is a famous retirement withdrawal guideline from US studies (Trinity Study). It suggests withdrawing 4% of your initial corpus each year (adjusted for inflation) and your money should last 30 years. However, India's higher inflation and different market dynamics make this rule less reliable.
- 4% rule (US standard): Safe for 30 years with a 60:40 portfolio in US markets
- 3% rule (India adjusted): More appropriate for Indian retirees given 5–6% inflation and market volatility
- Why 3% in India: Higher inflation (6% vs 3% in US) means your withdrawals need to grow faster, depleting corpus sooner
- Conservative estimate: Use 3–3.5% as your safe withdrawal rate for Indian retirement planning
For a ₹1 Crore corpus at 3% withdrawal: ₹30,000/month. At 4%: ₹33,333/month. The difference of ₹3,333/month may not seem large, but over 30 years, the 3% rule has a much higher success rate in Indian conditions.
Corpus vs Monthly Withdrawal at Different Rates
Here is how much monthly income different corpus sizes can generate at 3% and 4% withdrawal rates, assuming 6% post-retirement portfolio returns:
| Retirement Corpus | Monthly SWP at 3% | Monthly SWP at 4% | Sustainability at 3% |
|---|---|---|---|
| ₹50 Lakhs | ₹12,500 | ₹16,667 | 30+ years |
| ₹1 Crore | ₹25,000 | ₹33,333 | 30+ years |
| ₹2 Crore | ₹50,000 | ₹66,667 | 30+ years |
| ₹3 Crore | ₹75,000 | ₹1,00,000 | 30+ years |
| ₹5 Crore | ₹1,25,000 | ₹1,66,667 | 30+ years |
A ₹2 Crore corpus at 3% withdrawal gives you ₹50,000/month — enough for a modest retirement in most Indian cities. For a comfortable urban retirement with travel and healthcare, target ₹3–5 Crore.
Check my withdrawals Check whether your corpus can sustain the monthly withdrawal you want, year by year.
Post-Retirement Investment Options in India
Once you retire, your investment strategy shifts from growth to income generation. Here are the best options for generating regular income in India:
| Instrument | Current Rate (FY 2025-26) | Lock-in | Tax Treatment |
|---|---|---|---|
| SCSS (Senior Citizen Savings Scheme) | 8.2% | 5 years | TDS applicable |
| Bank Fixed Deposits | 6–7.5% | 1–5 years | Taxable as per slab |
| Corporate bonds (held directly) | 8–10% | 3–5 years | Interest taxed at slab rate |
| Debt Mutual Funds | 7–9% | None | Gains taxed at slab rate (units bought from April 2023), no indexation |
| Post Office Monthly Income Scheme | 7.4% | 5 years | TDS applicable |
| RBI Floating Rate Bonds | 8.05% | 7 years | Taxable as per slab |
A smart post-retirement portfolio allocates 60% to safe income instruments (SCSS, FD, RBI bonds) and 40% to growth assets (debt funds, balanced advantage funds, dividend-paying equity funds) to beat inflation while generating steady income.
Corpus Depletion Year Calculation
How long will your corpus last at different withdrawal rates? The answer depends on your portfolio return and whether you adjust withdrawals for inflation.
| Annual Withdrawal (% of corpus) | At 6% Return (no inflation adj.) | At 6% Return (with 5% inflation adj.) |
|---|---|---|
| 3% | Never depletes | ~40+ years |
| 4% | Never depletes | ~30 years |
| 5% | ~36 years | ~22 years |
| 6% | Never depletes (return = withdrawal) | ~18 years |
| 8% | ~24 years | ~13 years |
| 10% | ~16 years | ~10 years |
The magic number is maintaining a withdrawal rate below your portfolio return rate. If your portfolio returns 6% and you withdraw 3% (adjusted for inflation), your corpus will almost certainly outlast you.
To calculate depletion years precisely: with a corpus of C, annual withdrawal W (growing with inflation), and return r, your corpus lasts n years where C grows at rate r and shrinks by W each year adjusted for inflation. DhanPlan runs this month by month for your own plan, including tax and rising prices.
Plan Your SWP Withdrawals on DhanPlan
DhanPlan's SWP calculator lets you model different withdrawal scenarios: set your corpus, choose a withdrawal rate, add inflation adjustments, and see exactly how long your money will last. You can compare 3%, 4%, and 5% withdrawal rates side-by-side and find the safest withdrawal strategy for your retirement.
Start my plan Plan your retirement withdrawals and see how long your money lasts.