SWP Calculator
What is an SWP Calculator?
An SWP Calculator is a free online tool that shows how a Systematic Withdrawal Plan will play out over time. It tells you how much you can take out every month, how much you will have withdrawn in total, and what your investment will still be worth at the end of the period.
Enter your total investment, the monthly withdrawal you need, the expected annual return and the time period. The calculator projects your balance month by month - and warns you if your withdrawals would use up the whole corpus before the period ends.
Year-by-Year Withdrawal Schedule
Balance Projection| Year | Withdrawn | Returns Earned | Year-End Balance |
|---|
How Does an SWP Calculator Work?
Each month your remaining investment earns a return, and then your withdrawal is paid out of it. When the monthly return is larger than the withdrawal, your corpus keeps growing even as you draw an income; when it is smaller, the corpus slowly shrinks. The calculator repeats this for every month of the period.
Practical Example:
Suppose you invest ₹10,00,000 and withdraw ₹8,000 every month for 10 years at an expected return of 10% p.a.:
- Total Investment: ₹10,00,000
- Total Withdrawn: ₹9,60,000
- Value Left After 10 Years: ₹10,68,282
You draw ₹9.6 lakh over the decade and still end with more than you started, because the monthly return outpaces the withdrawal.
What is the SWP Calculator Formula?
The value left at the end of a systematic withdrawal plan, with withdrawals at the end of each month, is:
Ways to earn a regular income and their details:
| Income Option | How You Are Paid | Flexibility | Returns | Things To Note |
|---|---|---|---|---|
| SWP (Mutual Funds) | Fixed amount redeemed from your fund every month | High - change, pause or stop any time | Market-linked | Only the gain part of each withdrawal is taxed |
| FD Interest Payout | Bank pays interest monthly or quarterly | Low - premature closure carries a penalty | Fixed by the bank | Interest is taxed at your income-tax slab rate |
| IDCW (Dividend) Option | Fund pays out distributions when it declares them | None - amount and timing decided by the fund | Not guaranteed | Payouts are irregular and taxed at your slab rate |
| Senior Citizens' Savings Scheme | Government scheme paying interest every quarter | Low - 5-year lock-in, limited early exit | Set by the government | Only for investors aged 60 and above; capped deposit |
| Annuity Plans | Insurer pays a fixed income for life or a set term | Very low - usually irreversible once bought | Fixed at purchase | Income is fully taxable; money cannot be withdrawn |
Tax treatment summarised for general information only; rules change, so check the current position before investing.
Frequently asked questions
Everything you need to know — from what we do to how we do it — in one quick FAQ section.
OPEN ACCOUNTAn SWP lets you withdraw a fixed amount from a mutual fund at regular intervals, usually monthly. The rest of your money stays invested and keeps earning returns, which makes an SWP a popular way to draw a steady income from a lump sum.
