SWP Calculator
See how long your investment corpus lasts when you withdraw a fixed amount periodically.
How does this SWP calculator work?
Enter your total corpus, monthly withdrawal amount, expected return rate, and withdrawal period to see how your investment sustains over time.
Formula
Bn+1 = (Bn - W) × (1 + r) Where:
- B = Corpus balance
- W = Monthly withdrawal
- r = Monthly return rate (annual / 12 / 100)
Each month the corpus grows by returns, then the withdrawal is deducted. The process repeats until the period ends or the corpus is exhausted.
Why use a SWP calculator?
- Model monthly income from a mutual fund balance
- See how long the corpus may last at different withdrawal amounts
- Try a lower return to see a conservative case
- Check the chart if the balance reaches zero early
Note: Withdrawals and returns are illustrative. Fund performance and tax on redemptions will differ. Not investment advice.
SWP Calculator: guide and FAQ
What is it?
SWP (Systematic Withdrawal Plan) means taking a fixed amount out of a mutual fund on a schedule, often monthly. The fund sells units at the current NAV. If you withdraw more than the fund earns, the balance falls; if returns are higher, it can still grow.
How to use this calculator
- Enter starting corpus Enter the total you have invested and plan to draw from.
- Set monthly withdrawal Enter the monthly amount you need. Check whether the balance lasts for your chosen years.
- Add expected return Use a conservative rate after retirement (many use 6-8% on balanced funds). Equity-heavy portfolios may need a lower withdrawal or a higher return assumption.
- Choose withdrawal period Enter how many years you expect to withdraw. Watch the chart if the balance hits zero early.
Worked example
₹10 lakh, ₹10,000/month, and 8% return for 10 years can run out well before 10 years in this model if withdrawals exceed growth. Check the remaining balance on the chart.
Practical tips
- Keep 6-12 months of expenses in a liquid fund before relying on SWP from equity.
- Review the withdrawal amount each year as expenses and returns change.
Frequently asked questions
What happens if my corpus runs out early?
Withdrawals are too high for the return you assumed. Try a smaller monthly amount, a larger starting corpus, or fewer years of withdrawal.
Is SWP taxable?
Each withdrawal is a sale of units. Tax may apply on the gain portion under mutual fund rules.
SWP vs dividend option?
SWP lets you pick the amount and date. Dividends depend on the fund and are harder to budget around.