Investments
SWP Calculator
Systematic Withdrawal Plan calculator
About the SWP calculator
Free SWP Calculator to plan systematic withdrawals from mutual funds for retirement income. Calculate optimal withdrawal amounts, remaining corpus, and create sustainable income streams. Plan your retirement with our comprehensive SWP calculator for mutual fund investments.
How the maths works
SWP Remaining Value Formula
RV = IV × (1 + R)^N - W × [((1 + R)^N - 1) / R]- RV
- Remaining value after withdrawals
- IV
- Initial investment value
- R
- Monthly return rate
- N
- Number of months
- W
- Monthly withdrawal amount
A worked example
SWP Example
| Initial Investment | ₹50,00,000 |
| Monthly Withdrawal | ₹25,000 |
| Expected Return | 10% per annum |
| Period | 20 years |
Remaining Corpus: ₹1,73,85,326
How to use it
- Enter your initial investment amount
- Specify monthly withdrawal requirement
- Input expected return rate
- Set withdrawal period
- Get remaining corpus and sustainability analysis
What it accounts for
- Plan systematic withdrawals
- Calculate remaining corpus value
- Optimize withdrawal amounts
- Plan retirement income
- Balance growth and income needs
Why it is worth working out
- Regular income from investments
- Tax-efficient withdrawal strategy
- Continued growth of remaining corpus
- Flexible withdrawal amounts
Questions people ask
What is a Systematic Withdrawal Plan?
The reverse of a SIP: you hold a corpus in a fund and redeem a fixed amount at a fixed interval. It converts a lump sum into an income stream while the remainder stays invested, which is how most people fund a retirement from a portfolio rather than a pension.
How much can I safely withdraw?
The common rule is 4% of the starting corpus a year, adjusted for inflation — which is where the "25 times annual expenses" target comes from. It was derived from long US market histories and is a starting frame, not a guarantee. For a retirement longer than 30 years, or in a higher-inflation economy, 3% to 3.5% is the more defensible number.
Why is an SWP more tax-efficient than a fixed deposit?
Each withdrawal is a redemption, so only the gain portion is taxed, not the whole amount — and if the units are long-term, that gain is taxed at 12.5% with an annual exemption. FD interest is taxed in full at your slab rate. For a taxpayer in the 30% bracket the difference is substantial.
What is sequence-of-returns risk?
If the market falls badly in the first few years of withdrawals, you are selling more units at low prices and the corpus may never recover even if average returns are fine. It is the main reason retirement portfolios hold two to three years of withdrawals in something stable, so that equity never has to be sold into a crash.
Read more on this
- SWP — turning a corpus into a monthly income without draining it — A systematic withdrawal plan is an SIP in reverse, with one crucial asymmetry: falling markets now work against you instead of for you.
This calculator is for information and education. It is not financial advice — see the disclaimer.