SWP Calculator (India)
See how a Systematic Withdrawal Plan draws down your investment. Enter your total corpus, the monthly withdrawal, an expected return and the period.
A Systematic Withdrawal Plan (SWP) is the mirror image of a SIP: instead of investing a fixed amount each month, you withdraw a fixed amount from a mutual fund corpus while the remaining balance stays invested and keeps growing. It's a popular way to draw a regular "income" in retirement. This calculator simulates each month — growing the balance by the expected return, then subtracting your withdrawal — to show what's left at the end and how much you took out in total.
How an SWP is calculated
There's no single closed formula that captures the order of growth and withdrawal cleanly, so the calculator steps through every month. Each month the balance earns one month's return, then the fixed withdrawal is removed.
where i = return ÷ 12, W = monthly withdrawal
| ₹10L corpus, 8%, 10 yrs | Balance left |
|---|---|
| Withdraw ₹5,000/month | ₹13,04,910 |
| Withdraw ₹8,000/month | ₹7,56,072 |
| Withdraw ₹10,000/month | ₹3,90,180 |
Worked example
A ₹10 lakh corpus earning 8%, withdrawing ₹10,000 every month for 10 years:
| Total withdrawn = 10,000 × 120 | ₹12,00,000 |
| Balance left after 10 years | ₹3,90,180 |
| Initial investment | ₹10,00,000 |
Using an SWP for income
Notice that a modest ₹5,000 monthly withdrawal actually leaves you with more than you started — because 8% growth on ₹10 lakh outpaces the withdrawals. That's the sweet spot for a sustainable SWP: keep the withdrawal below the corpus's growth and it can, in principle, last indefinitely. Withdraw too aggressively and the balance shrinks and eventually hits zero. SWPs are also tax-efficient compared with dividends, since each withdrawal is partly capital, but returns are market-linked and can be negative in bad years, which draws the corpus down faster than the average suggests.