SWP Calculator
Plan a Systematic Withdrawal Plan - see your remaining corpus after a fixed period, or how long your money will last. Free, no login, nothing stored.
Assumes withdrawals happen monthly and returns compound monthly. Actual fund performance will vary.
Year-by-Year Breakdown
| Year | Withdrawn | Growth Earned | Closing Balance |
|---|
What Is SWP (Systematic Withdrawal Plan)?
A Systematic Withdrawal Plan lets you withdraw a fixed amount from a mutual fund or investment corpus at regular intervals - typically monthly - while the remaining balance stays invested and continues to earn returns. It's commonly used by retirees or anyone who wants a steady, predictable income stream from a lump sum, without withdrawing everything at once.
Free, No Login, No Data Stored
This calculator runs entirely in your browser. There is no sign-up, no account, and nothing you enter is saved, tracked, or sent anywhere. It's free to use as many times as you need.
How to Use This SWP Calculator
- Choose Corpus After Period to see how much would remain after withdrawing for a fixed number of years.
- Choose How Long Will It Last to see how many years and months your corpus can sustain a given withdrawal amount before running out.
- Enter your Total Investment, Monthly Withdrawal, and Expected Annual Return.
- Results update instantly - Total Withdrawn, Total Growth Earned, and either your Remaining Corpus or how long the corpus will last.
How SWP Is Calculated
Unlike a simple compound interest calculation, SWP doesn't have one neat formula, because a fixed amount is removed every month while the remaining balance keeps compounding. This calculator simulates the plan month by month:
Balance = Balance x (1 + Monthly Rate)Balance = Balance - Monthly Withdrawal
This repeats for every month in your chosen period (or until the balance reaches zero), giving a realistic month-by-month picture rather than a rough estimate.
SWP vs SIP
| Feature | SIP (Systematic Investment Plan) | SWP (Systematic Withdrawal Plan) |
|---|---|---|
| Direction of money flow | Money flows into the investment regularly | Money flows out of the investment regularly |
| Typical use case | Building a corpus over time | Generating regular income from an existing corpus |
| Best suited for | Younger investors in the accumulation phase | Retirees or anyone in the withdrawal/income phase |
| Effect on corpus | Corpus grows through contributions plus returns | Corpus reduces unless returns exceed withdrawals |
Tax Treatment of SWP
Each SWP withdrawal is treated as a partial redemption of mutual fund units, not as fixed income, so it's taxed as capital gains rather than as regular interest or salary income. The exact tax treatment depends on whether the fund is equity-oriented or debt-oriented, and how long the specific units being redeemed were held, under current capital gains tax rules. Since these rules can change and vary by fund type, consult a tax advisor or your fund's factsheet for the exact treatment applicable to your investment.
Who Is This Calculator For?
- Retirees planning a steady monthly income from a retirement corpus.
- Anyone with a lump sum - such as a bonus, inheritance, or maturity payout - looking to convert it into regular income.
- Investors comparing whether their corpus can sustain a desired withdrawal rate long-term.
This tool provides mathematical projections only and is not investment advice. Consider consulting a registered investment advisor for guidance specific to your financial situation.
Frequently Asked Questions
Can my corpus last forever with SWP?
Yes, if your monthly withdrawal is smaller than the returns your corpus generates each month, the balance can theoretically sustain itself indefinitely. This calculator flags this as "sustains more than 50 years" when your inputs suggest a very long or indefinite runway.
What happens if I withdraw more than my corpus earns?
Your corpus will gradually shrink over time, since you're drawing down more than it's generating in returns. The "How Long Will It Last" mode shows exactly when the corpus is projected to run out at your chosen withdrawal amount.
Is SWP better than a fixed deposit for regular income?
SWP can potentially offer better post-tax returns than a fixed deposit in some cases, since only the gains portion of each withdrawal is taxed as capital gains rather than the entire amount being taxed as interest income. However, SWP returns are market-linked and not guaranteed, unlike a fixed deposit's fixed rate.
Can I change my withdrawal amount later?
Yes, most mutual funds allow you to modify, pause, or stop an SWP at any time, and you can also make additional lump sum investments into the same fund if needed.
Does this calculator account for market volatility?
No, it assumes a constant, steady rate of return every month for simplicity. Real investments fluctuate, and withdrawing during a market downturn can deplete a corpus faster than this smoothed projection suggests, which is worth keeping in mind for retirement planning.
What is a safe withdrawal rate for SWP?
There's no universal answer, since it depends on expected returns, inflation, and how long the money needs to last. Many retirement planning discussions reference withdrawal rates roughly in the 4% to 6% per year range of the initial corpus as a starting point, but this should be adapted to your specific situation, ideally with professional guidance.
Is this calculator free to use?
Yes, completely free, with no login and no data stored, and works on both mobile and desktop.
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