About this SWP Calculator
An SWP (Systematic Withdrawal Plan) lets you redeem a fixed amount from a mutual fund at regular intervals while the remaining corpus stays invested. This SWP calculator illustrates how withdrawals and assumed returns interact.
Retirees and goal-based investors use SWP calculators to check whether a monthly cash need is sustainable for a chosen number of years.
How to use this calculator
- Enter your starting investment corpus.
- Set the monthly withdrawal amount you need.
- Choose an expected return on the remaining investment.
- Pick how many years you want withdrawals to last, then review remaining corpus.
Formula used
Each month the corpus grows by the monthly return rate, then the withdrawal is subtracted. The tool simulates this path for the selected tenure and reports total withdrawn and ending balance (or when funds run out).
Practical tips
- Start with a conservative withdrawal rate so markets can recover between dips.
- Keep 1–2 years of expenses in safer assets alongside equity.
- Review SWP amount yearly with inflation and portfolio performance.
Frequently asked questions
What is an SWP calculator?
It models regular withdrawals from an invested corpus and estimates what may remain after a period of time.
Is SWP better than interest from an FD?
They serve different needs. FDs offer more predictable interest; SWPs from market funds can grow corpus but also fall in value. Choice depends on risk and horizon.
Can my corpus become zero?
Yes. If withdrawals are high relative to returns, the simulation may show the corpus depleting before the end of the period.
Does SWP create a tax event?
Withdrawals are redemptions and may attract capital gains tax depending on fund type and holding period. This tool ignores tax.
