SWP Calculator

Withdraw regularly while your remaining money stays invested.

Systematic Withdrawal Plan

Calculate how long your investment will last with regular withdrawals

Total investment

₹

Withdrawal per month

₹

Expected return rate (p.a)

Time period

Total investment₹5,00,000

Total withdrawal₹6,00,000

Final value₹10,154

Withdrawn

Remaining

What is SWP?

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount regularly from your mutual fund investment while the remaining corpus continues to earn returns. Think of it as receiving a regular salary from your investments — you invest a lump sum, and then withdraw a fixed amount every month while the rest of your money keeps growing.

This calculator helps you find

•How long will my investment last with regular withdrawals?
•What monthly amount can I safely withdraw without depleting my corpus?
•How much will remain in my investment after a certain period?

Best for

•Retirees needing regular income from investments
•Creating a passive income stream
•Managing a large corpus systematically over time

A Systematic Withdrawal Plan (SWP) calculator helps you plan regular withdrawals from your investment portfolio while keeping the remaining amount invested. SWP is the reverse of SIP — instead of investing regularly, you withdraw a fixed amount at regular intervals.

SWP is commonly used by retirees to generate regular income from their accumulated investments. It provides a structured way to draw down your portfolio while the remaining balance continues to earn returns, potentially extending the life of your corpus.

How SWP Works

In an SWP, you invest a lumpsum in a mutual fund and set up regular withdrawals (monthly, quarterly, or annually). The fund redeems units equal to your withdrawal amount. The remaining units continue to be invested and grow. If your portfolio return exceeds the withdrawal rate, your corpus can potentially last indefinitely.

Sustainable Withdrawal Rates

The '4% rule' is a commonly cited guideline — withdrawing 4% of your portfolio annually (adjusted for inflation) has historically sustained a portfolio for 30+ years. However, this depends on asset allocation and market conditions. A more conservative 3-3.5% rate provides greater safety. Use the SWP calculator to model different scenarios with your specific corpus and expected returns.

Frequently Asked Questions

What is the ideal withdrawal rate for SWP?

A sustainable withdrawal rate is typically 3-5% of your total corpus annually. The classic '4% rule' suggests withdrawing 4% in the first year and adjusting for inflation thereafter. For conservative planning, 3-3.5% is safer. For example, with a ₹1 crore corpus, a 4% SWP would provide ₹33,333/month while keeping the corpus invested.

Is SWP better than taking a fixed deposit for regular income?

SWP from equity or balanced funds can potentially provide higher returns than FD interest while offering tax advantages. FD interest is taxed as income, while SWP redemptions are taxed as capital gains (lower rates for long-term holdings). However, FDs offer guaranteed returns while SWP returns depend on market performance. A mix of both provides stability with growth potential.