SWP Calculator
An SWP (Systematic Withdrawal Plan) lets you invest a lump sum and draw a fixed amount from it every month, while the balance stays invested and keeps earning returns. It is the mirror image of a SIP — instead of paying in regularly, you take out regularly, making it a popular way to create a steady income from mutual funds in retirement. Use this SWP calculator to see how long your corpus will last: enter your investment, monthly withdrawal, expected return and duration to see the total withdrawn and the balance left at the end.
- Total Withdrawn
- ₹12,00,000
- Total Return Earned
- ₹5,90,180
Final Value
₹3,90,180
- Total Withdrawn75%
- Balance Left25%
Formula
Balanceₘ = Balanceₘ₋₁ × (1 + i) − W
- Balanceₘ
- The remaining corpus at the end of month m.
- i
- Monthly rate of return = annual return ÷ 12 ÷ 100.
- W
- The fixed amount withdrawn each month.
The corpus first earns a month's return, then the withdrawal is taken — so each month the balance grows a little and then drops by W. The plan continues until the chosen period ends, or until the corpus is exhausted, whichever comes first. The expected return is an assumption, not a guarantee.
Worked example
Suppose you invest a corpus of ₹10,00,000, withdraw ₹10,000 every month, and the investment earns an expected 8% annual return over 10 years (120 monthly withdrawals).
- Total Investment (corpus)
- ₹10,00,000
- Monthly Withdrawal (W)
- ₹10,000
- Expected Return (p.a.)
- 8%
- Time Period
- 10 years (120 months)
Over the 10 years you withdraw ₹12,00,000 in total (₹10,000 × 120). Because the remaining balance keeps earning 8%, the corpus is not exhausted — you are left with about ₹3,90,180 at the end. In other words, you drew an income of ₹12 lakh from a ₹10 lakh corpus and still have nearly ₹3.9 lakh remaining.
Year-by-year withdrawal breakdown
Based on the default SWP Calculator values above. The final year matches the figures shown by the calculator — change the inputs to model your own withdrawal plan.
- Starting corpus
- ₹10,00,000
- Total withdrawn
- ₹12,00,000
- Return earned
- ₹5,90,180
- Balance left
- ₹3,90,180
After withdrawing ₹12,00,000 over 10 years, you still have about ₹3,90,180 left — the remaining corpus kept earning while you drew an income from it.
| Year | Withdrawn (cumulative) | Balance |
|---|---|---|
| 1 | ₹1,20,000 | ₹9.59 Lakh |
| 2 | ₹2,40,000 | ₹9.14 Lakh |
| 3 | ₹3,60,000 | ₹8.65 Lakh |
| 4 | ₹4,80,000 | ₹8.12 Lakh |
| 5 | ₹6,00,000 | ₹7.55 Lakh |
| 6 | ₹7,20,000 | ₹6.93 Lakh |
| 7 | ₹8,40,000 | ₹6.26 Lakh |
| 8 | ₹9,60,000 | ₹5.54 Lakh |
| 9 | ₹10,80,000 | ₹4.75 Lakh |
| 10 | ₹12,00,000 | ₹3.90 Lakh |
How the SWP calculator works
Move the sliders for total investment, monthly withdrawal, expected return and time period to see how your plan plays out. The calculator shows the total amount you withdraw, the return the remaining balance earns, and the corpus left at the end. If the withdrawals outpace the returns, it warns you in which month the corpus would run dry — so you can dial the withdrawal back to a sustainable level.
Why investors use an SWP
An SWP turns a lump sum into a predictable monthly income without you having to sell units manually or time the market. It’s widely used by retirees who want a salary-like cash flow from their savings, and by anyone who wants to draw down a corpus gradually. Because only the un-withdrawn balance stays invested, a well-sized SWP can pay you for years and still leave a meaningful balance behind.
Making your corpus last
- Keep withdrawals below the expected return if you want the corpus to survive — or even grow — over the long term.
- Be conservative with the return assumption. Markets don’t deliver a smooth 8% every year; a cautious estimate protects you against a bad early run.
- Review annually. As your corpus and expenses change, revisit the withdrawal amount so the plan stays sustainable.
- Pair it with a SIP mindset. The same compounding that built your corpus keeps working on whatever you don’t withdraw.
Frequently asked questions
What is an SWP?
A Systematic Withdrawal Plan (SWP) is a facility offered by mutual funds that lets you withdraw a fixed amount at regular intervals, usually monthly, from your invested corpus. The money you haven't withdrawn stays invested and continues to earn returns, so an SWP can provide a regular income while the balance keeps growing.
How is an SWP different from a SIP?
A SIP (Systematic Investment Plan) is for the accumulation phase — you pay a fixed amount in every month to build a corpus. An SWP is for the distribution phase — you take a fixed amount out every month from a corpus you already have. SIP builds wealth; SWP draws an income from it.
Will my SWP corpus ever run out?
It can. If your monthly withdrawal is larger than the returns the corpus earns, you are eating into the principal and the balance will eventually reach zero. If the withdrawal is smaller than the return, the corpus can actually keep growing while still paying you an income. This calculator flags the month the corpus would be exhausted if that happens.
Is the expected return guaranteed?
No. SWPs are typically run on market-linked mutual funds, so returns vary and are not guaranteed. The expected return you enter is an assumption used to project an outcome. A poor sequence of returns early on can deplete a corpus faster than the average rate suggests, so it is wise to keep withdrawals conservative.
Is SWP income taxed?
Each SWP withdrawal is treated as a partial redemption of units, so only the capital-gains portion of each withdrawal is taxable — not the whole amount. The exact tax depends on the fund type and how long the units were held. This calculator estimates cash flows only and does not compute tax; consult a tax professional for your situation.