SWP Calculator

Plan monthly withdrawals from a lump sum with inflation, step-ups, charts, and downloadable schedule.

Plan your SWP

Enter your investment, monthly withdrawal, expected annual return, and time period.

₹
₹
How the calculator works (formula & assumptions)

Monthly rate: i = (1 + r)^(1/12) − 1, where r is the annual return.

Balance after n months (fixed withdrawal W):
B_n = P(1+i)^n − W · ((1+i)^n − 1) / i

Solve other ways:
Max sustainable withdrawal: W = P·i·(1+i)^n / ((1+i)^n − 1)
Required corpus for a target withdrawal: P = W · ((1+i)^n − 1) / ( i·(1+i)^n )
Depletion time (approx.): n = ln(W/(W − P·i)) / ln(1+i)

Assumptions: withdrawals at month-end; constant average return; no fees/taxes; step-up once every 12 months; “real” line deflates by inflation.

Tax note (India): Each SWP payment is a mix of your invested principal and any gains. Generally, only the gains portion is taxable. Rules differ for equity vs. debt funds and by holding period, and they change over time. This calculator does not compute taxes. Please verify with your advisor and latest official guidance.

SWP (Systematic Withdrawal Plan) – Explained

On this page: What is SWP? • How to use this calculator • SWP Example • Inputs & Outputs • When SWP helps • Tips • SWP vs SIP vs STP • Tax basics • FAQs

What is an SWP?

An SWP (Systematic Withdrawal Plan) lets you take a fixed amount from your mutual fund at regular intervals (usually monthly). The fund sells a few units each time. If returns beat your withdrawal rate, your corpus can grow. If returns are weak or withdrawals are high, the corpus can run out.

Results

Total Investment
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Total Withdrawals
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Final Value
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Balance Over Time

Composition (Investment vs Returns vs Withdrawals)

Milestones

    Compare Plans (up to 3)

    Assumptions: monthly compounding using effective monthly rate i = (1 + r)^(1/12) − 1, withdrawals at month-end. Taxes/fees not included.

    How to use this calculator

    • Enter Total Investment, Withdrawal per month, Expected return (p.a.), and Time period.
    • (Optional) Add Inflation and a yearly Step-up for withdrawals.
    • See Final Value, Total Withdrawals, and any depletion warning.
    • Review the Balance over time chart and the Composition bar.
    • Save up to 3 plans, download the CSV, print to PDF, or copy a shareable link.

    SWP Example

    Scenario (India):

    • Total investment: ₹50,00,000
    • Withdrawal per month: ₹25,000
    • Expected return (p.a.): 10%
    • Time period: 10 years (120 months)
    • Inflation (for info): 6% p.a.

    Results (our method: monthly compounding, month‑end withdrawal):

    • Total withdrawals: ₹30,00,000
    • Total returns earned: ₹59,72,116
    • Final value (nominal): ₹79,72,116
    • Final value in today’s ₹ (inflation‑adjusted @ 6%): ≈ ₹44,51,588
    • Milestone: corpus exceeds ₹50L in 1 month

    First 3 months (illustration):

    Month Opening Interest Withdrawal Closing
    1 ₹50,00,000 ₹39,871 ₹25,000 ₹50,14,871
    2 ₹50,14,871 ₹39,989 ₹25,000 ₹50,29,860
    3 ₹50,29,860 ₹40,109 ₹25,000 ₹50,44,969

    Inputs & Outputs

    Inputs

    • Total Investment (₹): the lump sum you start with.
    • Withdrawals per month (₹): the fixed monthly payout.
    • Expected return (p.a. %): average annual return you assume; we convert it to a monthly rate.
    • Time period: how long you want the plan to run.
    • Inflation (p.a. %): optional, used for the “real” line and real final value.
    • Withdrawal step-up (%/yr): optional, increases withdrawal once every 12 months.

    Outputs

    • Final Value: balance at the end (₹, nominal) and in today’s ₹ (inflation‑adjusted).
    • Total Withdrawals: sum of all payouts.
    • Milestones: highlights like ₹50L hit or “Projected depletion in …”.
    • Full schedule: downloadable CSV / printable PDF.

    When an SWP can help

    • Retirement income: plan a monthly pay‑cheque from your corpus.
    • Regular cash flow: rent‑like income without locking money.
    • Goal drawdown: spend over a set number of years (education, sabbatical).

    Tips to try

    • Use a conservative return. Test 2–3% lower than you expect.
    • Add inflation to see true spending power.
    • Try a step‑up and check if the corpus still lasts.
    • Save 3 scenarios (base, cautious, stretch) and compare on the chart.

    SWP vs SIP vs STP

    • SWP: money out of a fund, fixed payouts, risk of depletion.
    • SIP: money into a fund, fixed investments, builds corpus.
    • STP: shift money between funds on a schedule (e.g., debt → equity).

    Tax basics (short)

    • Each payout has two parts: invested money and gains.
    • Generally, only the gains part is taxable.
    • Tax rules differ for equity vs debt funds and change over time.
    • This tool does not compute tax. Check the latest rules or talk to a professional.

    FAQs

    1. Can the corpus run out?
    Yes, if withdrawals are high or returns are low. The tool warns you and marks the month on the chart.
    2. What return should I use?
    Use a conservative rate. Try 2–3% lower than long‑term expectations.
    3. Can I change the withdrawal later?
    Yes, you can change it with your fund/portal. In this tool, try a step‑up or save new scenarios.
    4. Does SWP affect NAV?
    Units are sold at the fund’s NAV. Selling reduces your units; NAV for everyone else is unaffected.
    5. Is SWP the same as dividends (IDCW)?
    No. SWP is a planned redemption. IDCW depends on the fund’s distribution policy and may not be regular.
    6. Does the calculator include expense ratio and exit load?
    NAV reflects ongoing expenses. Exit loads (if any) are not modelled.
    7. Monthly vs quarterly payouts?
    This tool models monthly. Quarterly is similar but cash flow is lumpier.
    8. What’s a good withdrawal rate?
    There is no single number. Many retirees test 3–6% per year of starting corpus and adjust.
    9. Can I add a delay before the first withdrawal?
    Not yet. A “start after X months” option is on our roadmap.
    10. Can I save/share my plan?
    Yes. Save up to 3 scenarios, download CSV, print/PDF, and copy a shareable link that pre‑loads inputs.