What is an SWP (Systematic Withdrawal Plan)?

An SWP allows investors to systematically withdraw a specific amount of money from their mutual fund investments at fixed frequencies (monthly, quarterly, or annually) while keeping the remaining principal invested to generate compound growth.

How does an SWP Calculator work?

An SWP calculator estimates the ending balance of your investment corpus after deducting recurring periodic withdrawals and adding compound growth earned on the remaining balance during each compounding period.

What is the formula used for SWP calculations?

For each period: Ending Balance = (Previous Balance × (1 + r / n)) - Withdrawal Amount, where r is the annual expected return rate and n is the number of withdrawal compounding periods per year.

What happens if withdrawal amount exceeds growth rate?

If the periodic withdrawal amount exceeds the returns generated by the remaining corpus, the principal corpus gradually decreases over time until it is fully depleted. The calculator determines the exact duration before full depletion.

Can SWP provide perpetual passive income?

Yes. If your annual withdrawal rate is lower than the expected annual return rate of the fund (for instance, withdrawing 6% annually when the fund returns 10%), your principal corpus can continue growing while generating lifetime passive income.

SWP Calculator - Systematic Withdrawal Plan Calculator

Withdrawal Parameters

Currency

Total Investment (Corpus)

₹

Min: ₹100K Max: ₹50M

Withdrawal Frequency

Monthly Withdrawal Amount

₹

Min: ₹1,000 Max: ₹500,000

Expected Annual Return Rate

Min: 1% Max: 25%

Time Period (Years)

Yrs

Min: 1 Yr Max: 40 Yrs

Total Withdrawn

₹ 0

Over duration

Total Growth Earned

₹ 0

Compounded yield

Final Balance

₹ 0

Corpus status at end

Corpus Trajectory & Breakdown

Cashflow Schedule & Breakdown

Detailed period-by-period balance, accrued growth, and withdrawal schedule

Period	Opening Balance	Withdrawal	Growth Earned	Closing Balance

Passive Income Guide

SWP Calculator – Systematic Withdrawal Plan Guide

A Systematic Withdrawal Plan (SWP) allows mutual fund investors to redeem a fixed sum of money at regular monthly intervals while the remaining balance continues to earn market returns.

What is an SWP Calculator?

An online utility that models monthly drawdown cash flows, total capital withdrawn, tax efficiency, and remaining corpus longevity over chosen retirement horizons.

Key Benefits of SWP

Regular Cash Flow: Creates a predictable monthly income stream for post-retirement living.
Tax Efficiency: Only the capital gains portion of each withdrawal is taxed, unlike FD interest.
Capital Preservation: Remaining unredeemed balance continues compounding in mutual funds.

How SWP Drawdowns Work (Live Example)

Calculated for an initial corpus of ₹50,00,000 withdrawing ₹30,000 / month at 10% expected return over 10 years:

Initial Corpus ₹50,00,000

Monthly Payout ₹30,000 / mo

Expected Return 10% p.a.

Duration 10 Years

• Total Capital Withdrawn: ₹30,000 × 120 months = ₹36,00,000

• Remaining Fund Balance: ₹64,36,890 (Corpus grew despite monthly withdrawals!)

• Net Wealth Benefit: Income received ₹36,00,000 + Remaining ₹64,36,890 = ₹1,00,36,890

Initial Corpus: ₹50,00,000 Total Cash Payout: ₹36,00,000 End Balance: ₹64,36,890

Enter Corpus

Input your initial mutual fund investment lump sum.

Set Payout & Rate

Specify target monthly withdrawal sum and fund return rate %.

Analyze Longevity

Review remaining fund balances and interactive drawdown trajectory.