SWP Calculator
A Systematic Withdrawal Plan (SWP) is the mirror image of a SIP: instead of investing every month, you withdraw a fixed amount from your mutual fund corpus while the remaining balance keeps earning returns. It is a popular way to generate a steady income in retirement. This SWP calculator shows how the two forces — your withdrawals and the corpus’s growth — play out over time. Enter your starting corpus, the monthly withdrawal, the expected return, and the period, and it estimates how long your money lasts and what balance remains. Use it to find a sustainable withdrawal rate that gives you the income you need without draining your savings too soon.
Final Balance
₹69,63,401
Corpus survives the full 20 years.
Total Withdrawn
₹72,00,000
Months Lasted
240
About the SWP Calculator
An SWP calculator models regular withdrawals from an invested corpus that continues to earn returns. Each month the corpus grows by its return and then shrinks by your withdrawal, so the calculator tracks the net balance over time.
Why it is useful
Retirees and others living off investments need to know whether their withdrawals are sustainable. Withdraw too much and the corpus runs dry; too little and you live below your means. This tool helps you strike the balance and stress-test different withdrawal amounts and return assumptions.
How the calculation works
Each month the corpus earns the monthly return (annual rate ÷ 12) on the current balance, then your fixed withdrawal is subtracted. The calculator repeats this month after month, so as long as returns exceed withdrawals the corpus can last a very long time — or even grow.
Key inputs explained
- Initial corpus: The lump sum you start withdrawing from.
- Monthly withdrawal: The fixed amount you take out each month.
- Expected return & period: The assumed annual return and how long you withdraw.
Example calculation
Inputs
- Initial corpus
- ₹50,00,000
- Monthly withdrawal
- ₹30,000
- Return / period
- 9% p.a. / 20 years
Calculation breakdown
- Monthly return
- 9 ÷ 12 = 0.75% on the balance
- Monthly growth
- ≈ ₹37,500 in month 1
- Net change
- Growth (₹37,500) − withdrawal (₹30,000)
Because the 9% annual return initially earns more than ₹30,000 a month, the corpus keeps growing early on. Withdrawing significantly more, or assuming lower returns, would deplete it sooner.
Benefits
- Creates a predictable monthly income from a lump sum.
- The remaining corpus keeps compounding.
- More tax-efficient than fully redeeming and reinvesting.
Limitations
- Assumes a steady return; a market fall early on can deplete the corpus faster.
- Does not model capital-gains tax on each withdrawal.
- Fixed withdrawals lose purchasing power to inflation over time.
Tips
- Keep withdrawals below your expected return to preserve capital.
- Review the plan if markets fall sharply in the early years.
- Consider increasing withdrawals gradually to offset inflation.
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About this calculator
The SWP Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.