💸 SWP Calculator

Systematic Withdrawal Plan (SWP) Calculator Pakistan

Q: What is the difference between SIP and SWP?

While a SIP (Systematic Investment Plan) is used to regularly invest money to build wealth, an SWP (Systematic Withdrawal Plan) is the exact opposite — it is used to regularly withdraw money to generate a consistent income while leaving the rest of your capital invested to potentially grow.

Q: What is a safe withdrawal rate in Pakistan?

Globally, the '4% rule' (withdraw 4% of corpus annually) is cited for a 30-year retirement in low-inflation environments. In Pakistan, given higher expected returns from money market and income funds (12–18% p.a.) but also higher inflation (10–12%), a sustainable annual withdrawal rate of 10–14% of corpus is more realistic. At 12% annual withdrawal from a corpus earning 15% p.a., the corpus continues to grow slightly — providing an inflation buffer.

A SWP (Systematic Withdrawal Plan) is the reverse of a SIP — instead of investing monthly, you withdraw a fixed amount from your invested corpus while the remainder continues to earn returns. This free SWP calculator for Pakistan works in two modes: find how many years your corpus will last at a given monthly withdrawal, or calculate the maximum you can withdraw each month over a target period. Enter your corpus, expected annual return, and withdrawal amount to see a full year-by-year depletion schedule.

Quick answer: at 15% p.a. return on a Rs 1 crore corpus, you can sustainably withdraw about Rs 1.25 lakh/month indefinitely, since monthly returns cover the withdrawal. At 12% p.a., the sustainable amount is closer to Rs 1 lakh/month. Enter your own corpus and return rate below to find your sustainable withdrawal.

What do you want to find?

Enter your corpus, return rate & monthly withdrawal → find how many years it lasts.

Total Corpus (Invested)

Rs 1LRs 10 Cr

Expected Annual Return

0.1%40%

Monthly Withdrawal

Rs 1,000Rs 20L

Corpus Lasts

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Duration

—

Total Withdrawn

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Interest Earned

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Corpus Balance Over Time

How your invested corpus shrinks with each withdrawal

Annual Withdrawal vs Interest Earned

Year-by-Year Withdrawal Schedule

Year	Opening Balance	Withdrawn	Interest	Closing Balance

How to Use

Choose your mode: How long? to find corpus duration, or Max withdrawal to find the highest sustainable monthly amount.
Enter your total invested corpus in PKR (e.g., Rs 50,00,000).
Set the expected annual return — use 12–15% for money market funds, 18–22% for equity funds.
Enter your desired monthly withdrawal (duration mode) or target period in years (withdrawal mode).
Read the corpus duration or maximum monthly withdrawal, plus the full year-by-year depletion schedule.

Frequently Asked Questions

What is an SWP (Systematic Withdrawal Plan) in Pakistan?

A Systematic Withdrawal Plan (SWP) is an investment strategy offered by mutual funds in Pakistan that allows you to withdraw a specific, pre-determined amount at regular intervals (monthly, quarterly, or annually) from your existing investment. It is highly popular among retirees looking for a steady monthly income stream.

How does an SWP calculator work?

The SWP calculator helps you determine how long your mutual fund investments will last based on your initial capital, your desired periodic withdrawal amount, and the expected annual return rate (%) of the fund. It calculates how your remaining balance evolves while you continue making withdrawals.

What is the difference between SIP and SWP?

A SIP (Systematic Investment Plan) is used to regularly invest money to build wealth. An SWP is the exact opposite — you regularly withdraw money to generate a consistent income while the rest of your capital stays invested and continues to grow.

What return rate should I use?

For conservative corpus parked in money market funds, use 12–15%. For balanced funds, 18–20%. For equity funds, 22–28%. Using a lower rate gives you a safety margin.

What happens if I withdraw more than the monthly interest?

Your corpus shrinks each month. The calculator shows exactly how many years it will last. If your withdrawal equals or is less than the monthly interest earned, the corpus never depletes — you live purely off the returns.

How is monthly interest calculated?

Monthly interest = Corpus × (Annual Rate ÷ 12 ÷ 100). The closing balance each month = Opening balance × (1 + monthly rate) − withdrawal amount.

How much can I withdraw monthly from Rs 1 crore without depleting my corpus?

At a 15% per annum return on a Rs 1 crore corpus, you can sustainably withdraw approximately Rs 1.25 lakh/month indefinitely (monthly returns cover the withdrawal). At 12% p.a., the sustainable withdrawal is around Rs 1 lakh/month. Withdrawing more than the monthly returns will gradually deplete the corpus. Use the calculator above to model the sustainable rate for your specific corpus and expected return.

What is a safe withdrawal rate in Pakistan?

Globally, the "4% rule" (withdraw 4% of corpus annually) is cited for a 30-year retirement in low-inflation environments. In Pakistan, given higher expected returns from money market and income funds (12–18% p.a.) but also higher inflation (10–12%), a sustainable annual withdrawal rate of 10–14% of corpus is more realistic. At 12% annual withdrawal from a corpus earning 15% p.a., the corpus continues to grow slightly — providing an inflation buffer.

Is SWP income taxable in Pakistan?

Gains on mutual fund redemptions in Pakistan are subject to Capital Gains Tax (CGT). The rate depends on the holding period: funds held for less than 12 months pay a higher CGT rate, while longer holding periods attract lower rates. For funds held 4+ years, CGT may be significantly reduced. Consult a tax advisor for your specific situation, as CGT rules are updated periodically by FBR.

SWP Rules in Pakistan (2026)

An SWP in Pakistan is not a separate regulated product — it is an instruction you give to a SECP-licensed Asset Management Company (AMC) to automatically redeem units from your existing mutual fund investment at fixed intervals. A few rules to know before you set one up:

No fixed minimum or maximum withdrawal: AMCs typically require only a minimum initial investment (often Rs 10,000–50,000 depending on the fund) — the withdrawal amount and frequency (monthly, quarterly, annually) are set by you.
Withdrawals are unit redemptions: each SWP payment sells fund units at the prevailing Net Asset Value (NAV), so your payout is not fixed income — it moves with fund performance.
Capital Gains Tax applies on redemption: CGT is charged on the gain portion of each withdrawal, at a rate that depends on how long those units were held — shorter holding periods attract higher CGT, longer holding periods (4+ years) attract lower or nil CGT under current FBR rules.
You can pause, change, or stop an SWP anytime — there is no lock-in on the withdrawal instruction itself (though the underlying fund may have its own redemption gestation period, typically 2–6 business days).
Corpus can run out: unlike a pension, an SWP has no guarantee — if your withdrawal rate consistently exceeds the fund's returns, the corpus depletes. Use the calculator above to check your specific numbers before committing to a withdrawal amount.