What is an SWP Calculator?
An SWP calculator estimates how a Systematic Withdrawal Plan from a mutual fund plays out over time. You invest a lumpsum, withdraw a fixed amount every month, and the remaining balance keeps earning returns. The calculator shows your total withdrawals, the balance left at the end and whether your money could run out early.
SWP is widely used by retirees to create a regular monthly income, and by anyone who wants a steady cash flow from their investments with better tax efficiency than fixed-deposit interest.
How to use the SWP Calculator
- 1Enter the total investment (lumpsum corpus).
- 2Enter the monthly withdrawal amount you need.
- 3Set the expected annual return of the fund.
- 4Choose the withdrawal period in years.
- 5Optionally add an annual increase in withdrawals to keep up with inflation, then check the month-by-month schedule.
SWP Calculation Formula
- r
- — Monthly return = annual rate ÷ 12 ÷ 100
- Withdrawalₘ
- — Monthly withdrawal, raised each year by the annual increase %
The calculator simulates every month: the balance grows first, then the withdrawal is taken out. If the balance hits zero, it tells you when the money ran out.
Example: ₹10 lakh invested, ₹10,000 withdrawn monthly at 10% for 10 years
| Initial investment | ₹10,00,000 |
|---|---|
| Total withdrawn over 10 years | ₹12,00,000 |
| Balance remaining | ₹6,58,592 |
You withdraw more than you invested and still have over ₹6.5 lakh left, because the remaining balance keeps compounding. Withdraw too much, though, and the corpus can run out — the calculator warns you if that happens.
Benefits of a Systematic Withdrawal Plan
- Regular income — a fixed monthly payout, ideal for retirement or supplementing salary.
- Tax efficiency — each withdrawal is part capital and part gain; only the gain is taxed, unlike FD interest which is fully taxable at your slab rate.
- Money keeps working — the unwithdrawn balance continues to earn market returns.
- Flexible — you can change, pause or stop withdrawals at any time.
What is a safe withdrawal rate?
To make your corpus last, keep your annual withdrawal below your expected return. Many planners suggest withdrawing about 4–6% of the corpus per year from a balanced or hybrid fund. Use this calculator to test different withdrawal amounts and return assumptions until the balance stays positive for as long as you need it.
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.