SWP Calculator
Invested Amount
₹ 5,00,000
Monthly Withdrawal
₹ 10,000
Final Value
₹ 0
Total Withdrawals
₹ 6,00,000
Total Withdrawals
Final Value
What is a Systematic Withdrawal Plan (SWP)?
A Systematic Withdrawal Plan (SWP) is an investment strategy that allows investors to withdraw a fixed amount from their mutual fund or investment portfolio at regular intervals (monthly, quarterly, or annually). The remaining corpus stays invested, enabling continued growth while generating a steady income stream.
An SWP is popular among retirees, salaried individuals, and investors who want regular income without liquidating their entire investment.
Our SWP Calculator helps you plan sustainable withdrawals by considering your initial investment, expected return rate, withdrawal amount, and duration.
How Does an SWP Work?
SWP works by redeeming units from your investment at regular intervals. Withdrawals initially comprise more of the principal amount, but over time, a larger portion comes from earned returns.
For example:
- Investment: ₹10,00,000
- Annual Return: 10%
- Monthly Withdrawal: Fixed over 10 years
The SWP calculator shows how your money lasts, balancing income and capital preservation.
SWP Formula
The maturity and withdrawal values are based on this formula:
A = P × (1 + r/n)^(n × t)
Where:
- A = Future Value
- P = Investment Amount
- r = Rate of Return
- n = Number of compounding periods per year
- t = Time (in years)
Features & Benefits of SWP Calculator
- Sustainable Withdrawals – Plan regular income without exhausting capital.
- Scenario Testing – Compare different return rates and withdrawal amounts.
- Tax Planning – Estimate tax impact on withdrawals.
- Inflation Adjustment – Factor in rising costs to protect purchasing power.
- Quick & Accurate – Get instant results for smarter decisions.
Factors Affecting SWP Returns
- Market Performance – Fluctuations in returns impact withdrawal sustainability.
- Withdrawal Frequency – Monthly vs quarterly withdrawals affect compounding.
- Inflation Rate – Impacts real value of withdrawals over time.
- Fund Fees – Management costs reduce overall returns.
SWP Investment Options
- Equity Fund SWP – Higher growth but market-linked risk.
- Debt Fund SWP – Stable and safer with moderate returns.
- Hybrid Fund SWP – Balanced mix of equity & debt.
- Annuity SWP – Guaranteed withdrawals through insurance-based plans.
Pros & Cons of SWP
- Regular income at fixed intervals
- Keeps principal invested for growth
- Tax-efficient compared to lump sum
- Flexible withdrawal options
- Encourages disciplined withdrawals
- Returns depend on market performance
- High withdrawals may deplete corpus
- Inflation reduces real value over time
- No guaranteed returns
- Possible exit load or charges
Considerations Before Choosing SWP
- Market Risk – Returns depend on investment performance.
- Over-Withdrawal – High withdrawals may deplete funds quickly.
- Inflation Impact – Fixed withdrawals may lose value over time.
Conclusion
The SWP Calculator is a smart financial planning tool that helps you design a steady income strategy while keeping your money invested for growth. By analyzing factors like returns, inflation, and withdrawal frequency, you can optimize your plan to meet long-term financial goals.