What is SWP?
A Systematic Withdrawal Plan lets you withdraw a fixed amount from your mutual fund investment every month. Instead of redeeming everything at once, the rest of your money stays invested and continues to grow.
SWP Calculator — Systematic Withdrawal Plan
Estimate your mutual fund corpus, monthly withdrawals, expected returns and remaining value with a Systematic Withdrawal Plan (SWP).
Use the ToolBandhu Systematic Withdrawal Plan calculator to see your remaining corpus, total amount withdrawn and estimated growth based on an assumed annual return.
Your SWP details
Results update instantly as you type.
The lump-sum amount already invested, for example 1000000.
An assumption you choose, such as 7.5 or 8. Not a guaranteed return.
The fixed amount you want to receive every month.
Between 1 and 50 years.
Your SWP estimate
Remaining Value (estimated)
₹0
Withdrawing ₹10,000 every month for 15 years from ₹10,00,000 at an assumed 8% annual return.
At this withdrawal rate the investment would be exhausted in about 13 years 10 months — before the selected 15-year duration. Try a smaller monthly withdrawal or a shorter duration.
₹10,00,000
Initial Investment
₹16,53,413
Total Withdrawn
₹6,53,413
Estimated Returns
Disclaimer: This SWP calculator provides an illustrative estimate based on the initial investment, withdrawal amount, duration and assumed annual return entered by the user. Mutual fund returns are market-linked and actual outcomes may be higher or lower. This calculator is not investment advice or a guarantee of returns.
Corpus over time
Remaining investment value compared with the total amount withdrawn, year by year. Amounts are in ₹.
Year-by-Year Breakdown
Estimated values at the end of each year, rounded to the nearest rupee.
| Year | Total Withdrawn | Remaining Value | Estimated Returns |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹9,58,500 | ₹78,500 |
| 2 | ₹2,40,000 | ₹9,13,556 | ₹1,53,556 |
| 3 | ₹3,60,000 | ₹8,64,881 | ₹2,24,881 |
| 4 | ₹4,80,000 | ₹8,12,167 | ₹2,92,167 |
| 5 | ₹6,00,000 | ₹7,55,077 | ₹3,55,077 |
| 6 | ₹7,20,000 | ₹6,93,249 | ₹4,13,249 |
| 7 | ₹8,40,000 | ₹6,26,289 | ₹4,66,289 |
| 8 | ₹9,60,000 | ₹5,53,771 | ₹5,13,771 |
| 9 | ₹10,80,000 | ₹4,75,235 | ₹5,55,235 |
| 10 | ₹12,00,000 | ₹3,90,180 | ₹5,90,180 |
| 11 | ₹13,20,000 | ₹2,98,065 | ₹6,18,065 |
| 12 | ₹14,40,000 | ₹1,98,305 | ₹6,38,305 |
| 13 | ₹15,60,000 | ₹90,265 | ₹6,50,265 |
| 14 | ₹16,53,413 | ₹0 | ₹6,53,413 |
How SWP is calculated
Balance = Previous Balance × (1 + r) − W
- r = monthly expected rate of return (annual return ÷ 12 ÷ 100)
- W = fixed monthly withdrawal
The calculation runs month by month: the remaining balance first grows by the monthly rate, then the withdrawal is deducted. When the expected return is 0%, the balance simply falls by the withdrawal amount each month. If the grown balance cannot cover a full withdrawal, the remaining amount is paid out and the plan ends early.
Planning the investing phase instead? Use the SIP Calculator to estimate how a monthly investment could grow into the corpus an SWP later draws from.
How does SWP work?
Every month, fund units worth your chosen amount are redeemed and paid to you. The remaining units keep earning returns, so the corpus changes each month by growth minus the withdrawal.
SWP vs SIP
A SIP builds wealth by investing a fixed amount every month; an SWP does the opposite by paying you a fixed amount every month. Many investors use a SIP during their earning years and switch to an SWP in retirement.
How returns and withdrawals affect the corpus
If your monthly growth is larger than your withdrawal, the corpus keeps growing. If the withdrawal is larger, the corpus shrinks and can eventually run out — this calculator warns you when that would happen early.
How to use the SWP Calculator?
Enter your initial investment, expected annual return, monthly withdrawal and duration. The remaining value, total withdrawn and the year-by-year table update instantly as you type.
What if the expected return is 0%?
With 0% assumed growth the corpus simply falls by the withdrawal amount each month, so the remaining value is the initial investment minus everything withdrawn.
Understanding SWP
What is an SWP?
A Systematic Withdrawal Plan (SWP) is a simple arrangement where you withdraw a fixed amount from an investment corpus at regular intervals — most often once a month. The money you do not withdraw stays invested and may continue to earn returns, so your balance changes every month based on both growth and withdrawals.
How does an SWP work?
- Your initial investment is placed in the chosen investment.
- The remaining corpus earns returns based on the annual return you assume.
- A fixed monthly withdrawal is deducted from the balance.
- The remaining balance grows or declines depending on whether returns are larger or smaller than the withdrawal.
Actual investment returns are not guaranteed and can vary from year to year.
How is the SWP result calculated?
This SWP calculator uses a month-by-month simulation. For each month the current balance grows by the assumed monthly return, then the selected monthly withdrawal is deducted. The process repeats for the chosen investment duration, or stops earlier if the corpus is exhausted.
₹10 Lakh SWP example
- Initial investment: ₹10,00,000
- Expected annual return: 12%
- Monthly withdrawal: ₹10,000
- Duration: 10 years
Enter these values above to see the estimate. Under the calculator's assumed monthly return model the output is only an illustration — actual market returns can vary, so the real remaining corpus may be higher or lower.
How long will your SWP corpus last?
- Initial investment amount
- Expected return
- Monthly withdrawal amount
- Actual investment performance
- How long you plan to keep withdrawing
Increasing the monthly withdrawal can cause the corpus to run out sooner, because more is taken out than the remaining balance can earn back.
SWP vs Fixed Deposit monthly income
The two work differently. An SWP withdrawal may include investment growth and/or a part of your invested capital, so the balance can fall over time. Fixed deposit monthly income depends on the deposit terms and the interest structure agreed at the time of booking. Compare both against your own needs before deciding.
SWP vs SIP
| Feature | SWP | SIP |
|---|---|---|
| Purpose | Regular withdrawals | Regular investment |
| Cash flow | Money comes out | Money goes in |
| Common use | Generating periodic income | Building long-term wealth |
| Investment corpus | Usually starts with an existing corpus | Builds gradually over time |
Building the corpus first? Use the SIP Calculator to estimate how monthly investments could grow before you start a Systematic Withdrawal Plan.
Frequently asked questions
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