Plan a steady monthly income from your investment. See your final value, total withdrawal and how long your money lasts.
What is an SWP?
A Systematic Withdrawal Plan (SWP) lets you take out a fixed amount from your mutual fund every month. The money you leave in the fund keeps earning returns. Retirees, and anyone who wants a regular income from savings, use SWP as a steady paycheque from their investments.
This SWP calculator adds each month’s return to your balance and then subtracts your withdrawal. It shows how your balance changes, and warns you if your money would run out before the period ends.
SWP formula
Balance after n months = P × (1 + i)ⁿ − W × [((1 + i)ⁿ − 1) ÷ i]
P = total investment · W = monthly withdrawal · i = monthly return rate (annual rate ÷ 12 ÷ 100) · n = number of months
Example
If you invest ₹10,00,000 and withdraw ₹8,000 every month for 10 years at 8% per year, you withdraw ₹9,60,000 in total and still have about ₹7.56 lakh left at the end.
SIP vs SWP
- SIP puts a fixed amount into a fund every month to build wealth.
- SWP takes a fixed amount out of a fund every month to create income.
- Many investors use SIP while they earn, then switch to SWP after retirement.
Tips for a lasting SWP
- Keep your yearly withdrawal near 4% to 6% of your investment if you want the money to last many years.
- Withdraw less than your expected returns so your balance does not shrink fast.
- Review the amount every year, since inflation raises your costs.
- Check how withdrawals are taxed in your country before you start.
Frequently asked questions
What is an SWP?
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund investment at regular intervals, usually every month. The rest of your money stays invested and keeps earning returns.
How does an SWP calculator work?
Each month the calculator adds the monthly return to your balance and then subtracts your withdrawal. After the chosen number of months it shows your final value, total withdrawal and returns earned.
What is the difference between SIP and SWP?
A SIP puts a fixed amount into a fund every month to build wealth. An SWP takes a fixed amount out of a fund every month to create regular income.
How much can I safely withdraw with an SWP?
Many planners suggest withdrawing about 4% to 6% of your investment per year if you want the money to last a long time. The safe amount depends on returns, inflation and how long you need the income.
Can my money run out with an SWP?
Yes. If your monthly withdrawal is higher than the returns your fund earns, your balance falls and can reach zero. This calculator tells you when that would happen.
Are SWP returns guaranteed?
No. Mutual fund returns change with the market. This calculator uses a steady return rate you enter, so treat the result as an estimate.
This calculator gives estimates for information only and is not financial advice. Mutual fund investments are subject to market risk.
