Investing calculator
SWP Calculator
Planning a monthly income from a lump sum? This SWP calculator shows how much you can withdraw, what stays invested, and whether your corpus lasts the full period — updated live as you drag.
- Total withdrawn
- ₹48,00,000
- Balance left
- ₹16,65,141
- Invested at start
- ₹25,00,000
For illustration only. It assumes a constant monthly return; real fund returns vary and are not guaranteed. Withdrawals may be subject to capital-gains tax. This is not investment advice.
How this SWP calculator works
A Systematic Withdrawal Plan pays you a fixed amount each month from an invested lump sum. Every month the balance first earns a return, then your withdrawal is taken out:
balanceₘ = balanceₘ₋₁ × (1 + i) − W
Here i is the monthly return (annual rate ÷ 12) and W is your monthly withdrawal. The calculator steps through every month, so if the corpus runs out early, it tells you when.
A worked example
Invest ₹25,00,000 and withdraw ₹20,000 a month at an expected 9% a year. You draw ₹2.4 lakh a year while the corpus earns about ₹2.25 lakh, so the balance dips gently — after 20 years you have taken out ₹48 lakh and still hold about ₹16.6 lakh. Lower the withdrawal, or earn a little more, and the corpus can grow even while it pays you.
The rule of thumb
An SWP is sustainable when your annual withdrawal stays below the return the corpus earns — often cited as around 4–6% of the corpus a year. Draw much more and you are spending capital, not income. Use the sliders to find a withdrawal your corpus can comfortably support.
Frequently asked questions
- What is an SWP calculator?
- An SWP (Systematic Withdrawal Plan) calculator estimates how a lump-sum investment behaves when you withdraw a fixed amount every month while the rest stays invested and keeps earning returns. It shows how much you withdraw in total and the balance left at the end of the period.
- How does an SWP work?
- You invest a lump sum in a fund and instruct it to pay you a fixed amount each month. Each month the balance first earns a return, then your withdrawal is taken out. If the returns roughly match your withdrawals, the corpus can last a long time; if withdrawals outpace returns, it shrinks and eventually runs out.
- Can my money run out with an SWP?
- Yes. If your monthly withdrawal is larger than the returns the corpus earns, the balance falls each month and can be exhausted before the end of your chosen period. This calculator flags the point at which that happens so you can lower the withdrawal or shorten the plan.
- How is an SWP taxed?
- Each SWP withdrawal is treated as a partial redemption, so only the gains portion is taxed, as capital gains. The exact treatment depends on the fund type and holding period. This tool shows gross figures before any tax.
- Are these SWP figures guaranteed?
- No. The calculator assumes a constant monthly return, but real fund returns vary and are not guaranteed — a weak market early on can drain the corpus faster. Treat the result as an illustration for planning, not a promise of income.