About the SWP Calculator
What is the SWP Calculator?
A Systematic Withdrawal Plan (SWP) pays you a fixed amount from a mutual fund every month while the rest of the money stays invested. It is a popular way to create regular income in retirement or to fund a known monthly expense.
Enter the starting corpus, the monthly withdrawal, the expected annual return and the period. The calculator shows how many months the withdrawals can be sustained, the total amount withdrawn and the balance remaining at the end.
How to use the SWP Calculator
- Initial Corpus (₹) (sample: 50,00,000)
- Monthly Withdrawal (₹) (sample: 30,000)
- Expected Return (% per year) (sample: 8)
- Projection Period (Years) (sample: 20)
- Press Calculate SWP (results also refresh as you type). The result card shows the Ending Balance, along with Total Withdrawn, Withdrawals Sustained For and Monthly Withdrawal.
Formula used
Balanceₘ = Balanceₘ₋₁ × (1 + r ÷ 12) − W
- W = the monthly withdrawal
- r = the expected annual return
Withdrawals continue until the period ends or the balance reaches zero. If W is less than the monthly return on the corpus, the balance keeps growing.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Initial Corpus (₹) | 50,00,000 |
| Monthly Withdrawal (₹) | 30,000 |
| Expected Return (% per year) | 8 |
| Projection Period (Years) | 20 |
| Result | Value |
|---|---|
| Ending Corpus | ₹69,63,401 |
| Total Withdrawn | ₹72,00,000 |
| Withdrawals Sustained For | 20 years |
| Monthly Withdrawal | ₹30,000 |
Tips for using the SWP Calculator
- Only the gains portion of each SWP instalment is taxed, which usually makes SWP more tax-efficient than FD interest.
- Keep the withdrawal rate around 4–6% a year of the corpus for long periods.
- Use a hybrid or balanced-advantage fund to reduce volatility during withdrawals.