SWP Calculator

What Is SWP?

SWP stands for Systematic Withdrawal Plan — it is the opposite of a SIP (Systematic Investment Plan). Instead of investing a fixed amount every month, you withdraw a fixed amount from an existing investment corpus every month.

The remaining corpus continues to earn returns, which means your money can last much longer than simple division would suggest. SWP is commonly used for generating regular income from a lump sum investment, especially during retirement.

How the Calculator Works

The calculator simulates month-by-month withdrawals from your corpus while the remaining balance earns returns at the specified annual rate.

For each month:

Monthly Interest = Balance × (Annual Rate ÷ 12)

New Balance = Balance + Monthly Interest − Monthly Withdrawal

If the balance drops to zero or below at any point, the corpus is considered depleted and withdrawals stop.

The Total Returns Earned shows how much interest your remaining corpus generated over the entire period — this is the money your investment earned for you while you were withdrawing from it.

Example Calculation

Total Corpus: ₹50,00,000 (50 Lakh)

Monthly Withdrawal: ₹30,000

Expected Annual Return: 8%

Withdrawal Period: 10 years

At 8% annual return, ₹50L earns about ₹33,333/month in interest — more than the ₹30,000 withdrawal. This means the corpus actually grows over time.

After 10 years, the remaining balance is approximately ₹56,09,820 — the corpus has grown despite withdrawing ₹36L over the period.

Total returns earned: approximately ₹42,09,820.

This is the power of SWP — when your withdrawal is less than or close to the returns, your money can last indefinitely.

What if you withdraw more?

Same ₹50L corpus at 8%, but withdrawing ₹50,000/month for 10 years:

Total withdrawn: ₹60,00,000 over 120 months. The corpus shrinks because withdrawals exceed the monthly interest.

After 10 years, the remaining balance is approximately ₹19,50,899.

The corpus survived 10 years but is significantly reduced. At this rate, it would deplete in about 14 years. Try it in the calculator above to see the exact breakdown.

When to Use SWP

Retirement income — withdraw a fixed monthly amount from your retirement corpus while the rest stays invested and earns returns.
Living off savings — if you have a lump sum from selling property, receiving an inheritance, or a business exit, SWP helps you plan how long that money will last.
Supplementing pension — use SWP to bridge the gap between your pension income and actual monthly expenses.
Education funding — set aside a corpus for a child's higher education and withdraw monthly as needed.
Sabbatical planning — taking a year or two off work? SWP helps you plan withdrawals from your savings.

SWP vs FD Interest

Many people park their corpus in a Fixed Deposit and live off the interest. Here is how SWP from a mutual fund compares:

Tax efficiency — in an FD, the entire interest is taxed as income every year. In SWP from a mutual fund, each withdrawal is a mix of principal and gains. Only the gains portion is taxed, and long-term capital gains get preferential tax treatment. This means you keep more of your money.
Higher potential returns — FDs typically offer 6–7% (pre-tax). A balanced or debt mutual fund can deliver 8–10% over the long term, especially if you stay invested through market cycles.
Flexibility — FD locks your money for a fixed term. SWP lets you increase, decrease, or pause withdrawals as your needs change.
Inflation protection — FD rates are fixed. Equity-oriented SWP investments have a better chance of beating inflation over time.

The trade-off: FDs offer guaranteed returns with no market risk. SWP returns depend on market performance, so the actual remaining balance may vary. Choose based on your risk tolerance.

How to Make Your Corpus Last Longer

Withdraw less than the returns — if your corpus earns 8% per year (about ₹33,333/month on ₹50L), withdrawing ₹25,000–₹30,000/month means your corpus may actually grow over time, not shrink.
Consider step-down withdrawals — as you age, some expenses naturally reduce (travel, commuting, clothing). Planning for lower withdrawals in later years helps the corpus last longer.
Keep an emergency fund separate — do not withdraw extra from your SWP corpus for emergencies. Maintain 6–12 months of expenses in a liquid fund or savings account.
Review annually — recalculate every year with actual returns. If markets did well, you might afford a small increase. If markets were down, consider reducing withdrawals temporarily.
Start with a lower withdrawal rate — the classic "4% rule" suggests withdrawing 4% of your corpus per year (about ₹16,667/month on ₹50L). This gives a high probability of your money lasting 25–30 years.

How to Use This Calculator

Enter your total corpus — the lump sum amount you have available for withdrawals.
Set the monthly withdrawal — the fixed amount you plan to take out every month.
Enter expected annual return — the rate at which you expect your remaining corpus to grow. Be conservative — use 7–8% for balanced funds, 6–7% for debt funds.
Set the withdrawal period — the number of years you want to plan for. Try different values to see how long your money lasts.
Click Calculate — the calculator shows your remaining balance, total withdrawn, total returns earned, and a year-by-year breakdown with a visual chart.
Watch for the depletion warning — if your corpus runs out before the period ends, a warning badge shows exactly when. Reduce the monthly withdrawal or increase the corpus to fix this.

SWP is a powerful tool for turning a lump sum into a steady income stream. The key is balance — withdraw too much and the corpus depletes fast; withdraw too little and you are not using your money effectively. Use this calculator to find the sweet spot where your money works for you as long as you need it. Remember: the remaining corpus earns returns, so your money lasts much longer than simple division suggests.