SWP Calculator
With a Systematic Withdrawal Plan (SWP), you can take out set amounts of money from your mutual fund investment on a regular basis. SWP gives you regular income, while your remaining corpus keeps growing through market returns. This is different from lump-sum redemption.
Systematic Withdrawal Plan-SWP is good for retirees who want a monthly income or anyone who needs money from time to time, like for EMIs or school fees. The calculator shows how your corpus changes over time while you make regular withdrawals.
What is an SWP Calculator?
SWP calculator is an online tool that checks to see if your withdrawal plan will work in the long run. This is important for planning for retirement and making sure your money lasts.
Important Inputs:
Total amount of the investment (lump sum corpus)
Amount of money withdrawn each month (set amount at set times)
Expected annual return (usually between 8% and 12% for equity funds)
Results:
Final value of the corpus after the withdrawal period
Total withdrawals over the course of the term
Please keep in mind that the calculations are based on steady returns, but the actual performance changes. The calculator gives you estimates, not guarantees, and it doesn't take taxes or inflation into account. If you want income that won't lose value over time, think about a step-up SWP with yearly increases in withdrawals.
How can Stockify’s SWP Calculator help you?
The SWP calculator can help you
Retirement Planning:
SWP calculator can help you check if you can sustain based on the investments and getting monthly income for next 15-20 years while preventing risk of outliving savings.
Scenario Testing:
SWP calculator helps you test different withdrawal amounts, return rates, and tenures to find optimal strategy so you can live peacefully once you retire.
Motivate your to work hard:
Knowing that you can have a plan in place for your retirement can serve as a motivator to work hard and save as much as possible.
How do SWP Calculators work?
SWP calculators use monthly formulas accounting for withdrawals on reducing balance:
Closing Balance = (Opening Balance + Monthly Returns) - Withdrawal
Monthly Returns = Opening Balance × (Annual Return ÷ 12) ÷ 100
The process repeats each month: opening balance earns returns, withdrawal is deducted, closing balance becomes next month's opening balance.
Example of Systematic Withdrawal Plan
An individual has invested ₹25,00,000 for a tenure of 20 years with a systematic withdrawal of ₹20,000 per month. The expected annual return is 10% (monthly return = 10% ÷ 12 = 0.833%).
Year-wise Summary:
Year | Opening Balance | Total Withdrawals | Total Returns Earned | Closing Balance |
1 | ₹25,00,000 | ₹2,40,000 | ₹2,50,471 | ₹25,10,471 |
2 | ₹25,10,471 | ₹2,40,000 | ₹2,51,568 | ₹25,22,039 |
3 | ₹25,22,039 | ₹2,40,000 | ₹2,52,779 | ₹25,34,818 |
4 | ₹25,34,818 | ₹2,40,000 | ₹2,54,117 | ₹25,48,935 |
5 | ₹25,48,935 | ₹2,40,000 | ₹2,55,595 | ₹25,64,531 |
6 | ₹25,64,531 | ₹2,40,000 | ₹2,57,229 | ₹25,81,759 |
7 | ₹25,81,759 | ₹2,40,000 | ₹2,59,033 | ₹26,00,792 |
8 | ₹26,00,792 | ₹2,40,000 | ₹2,61,026 | ₹26,21,818 |
9 | ₹26,21,818 | ₹2,40,000 | ₹2,63,227 | ₹26,45,045 |
10 | ₹26,45,045 | ₹2,40,000 | ₹2,65,659 | ₹26,70,704 |
11 | ₹26,70,704 | ₹2,40,000 | ₹2,68,346 | ₹26,99,050 |
12 | ₹26,99,050 | ₹2,40,000 | ₹2,71,314 | ₹27,30,365 |
13 | ₹27,30,365 | ₹2,40,000 | ₹2,74,594 | ₹27,64,958 |
14 | ₹27,64,958 | ₹2,40,000 | ₹2,78,216 | ₹28,03,174 |
15 | ₹28,03,174 | ₹2,40,000 | ₹2,82,218 | ₹28,45,392 |
16 | ₹28,45,392 | ₹2,40,000 | ₹2,86,638 | ₹28,92,030 |
17 | ₹28,92,030 | ₹2,40,000 | ₹2,91,522 | ₹29,43,552 |
18 | ₹29,43,552 | ₹2,40,000 | ₹2,96,917 | ₹30,00,469 |
19 | ₹30,00,469 | ₹2,40,000 | ₹3,02,877 | ₹30,63,346 |
20 | ₹30,63,346 | ₹2,40,000 | ₹3,09,461 | ₹31,32,807 |
20-Year Summary:
Initial Investment: ₹25,00,000
Total Withdrawals: ₹48,00,000 (₹20,000 × 12 × 20 years)
Total Returns Earned: ₹54,32,807
Final Corpus Balance: ₹31,32,807
Total Wealth Created: ₹48,00,000 (withdrawals) + ₹31,32,807 (remaining corpus) = ₹79,32,807
Key Insights:
Over 20 years, you take out ₹48 lakh from your ₹25 lakh investment.
Your corpus GROWS to ₹31.33 lakh even though you took out ₹48 lakh.
Total wealth made: ₹79.33 lakh from an investment of ₹25 lakh (3.17x growth)
Monthly returns (an average of ₹22,637) are higher than monthly withdrawals (₹20,000), which makes the corpus grow.
This is a long-term SWP that gives you income while your corpus keeps growing.
The main difference is that the corpus grows instead of shrinks because monthly returns are higher than withdrawals.
How does SWP differ from SIP?
Here is how SWP differs from SIP:
Aspect | Systematic Withdrawal Plan (SWP) | Systematic Investment Plan (SIP) |
Purpose | Generate regular income from existing corpus | Build wealth through regular investments |
Cash Flow Direction | Money flows out of mutual fund to investor | Money flows from investor to mutual fund |
Investment Requirement | Requires lump sum corpus upfront | Start with small monthly contributions (₹500+) |
Ideal For | Retirees, income seekers, or goal-based withdrawals | Salaried individuals, wealth accumulation goals |
Corpus Impact | Corpus reduces over time (if withdrawals exceed returns) | Corpus grows through contributions and compounding |
Tax Treatment | Capital gains tax on each withdrawal | No tax on investment; only on redemption |
How to use Stockify's SWP Calculator
Follow these simple steps to use Stockify's SWP calculator:
Enter the total amount of money you want to invest (e.g. ₹10,00,000).
Please tell us how much you want to withdraw and how often.
Choose the annual return you expect from your investments.
Then enter the duration for withdrawal in years.
Click "Calculate" to see the final corpus value, total withdrawals, and whether the plan is still good.
Advantages of using SWP Calculator
Retirement Sustainability Check:
Tests if your corpus lasts 15-20 years at 4-6% annual withdrawal rates without depletion
Scenario Testing Power:
Adjust withdrawal amounts, expected returns (8-12%), and tenures to find optimal strategies instantly
Step-Up SWP Simulation:
Models inflation-adjusted withdrawals (5-7% yearly increases) to maintain real income purchasing power
Tax Efficiency Planning:
Shows LTCG tax impact (12.5% above ₹1.25L on equity funds) vs FD slab taxation for better choices
Visual Year-wise Breakdown:
Interactive tables showing Opening Balance → Returns → Withdrawals → Closing Balance progression
Corpus Growth Validation:
Confirms if monthly returns exceed withdrawals, ensuring principal growth (₹25L → ₹31.33L over 20 years)
FAQ
SWP calculator is a free online tool that tells you how long your investment will last based on how much you take out, how often you take it out, and what you expect to make. Enter your lump sum, desired withdrawal, and return rate to see the final corpus value and total withdrawals.
Every month, the closing balance is calculated as follows: Opening Balance + Monthly Returns - Withdrawal. Monthly Returns is equal to Opening Balance × (Annual Return ÷ 12) ÷ 100. The process goes on until the tenure is over or the corpus runs out.
Minimum corpus: ₹10,000–₹25,000; minimum withdrawal: ₹500–₹1,000 for each transaction. Different fund houses and schemes have different requirements.
Every month, every three months, every six months, or every year. Monthly works for regular costs, and quarterly works for bigger costs that happen less often. You can ask to change the frequency.
Yes, SWP is better for taxes (equity LTCG at 12.5% above ₹1.25 lakh vs FD interest taxed per slab) and it has the potential to grow faster than inflation, unlike FD's fixed returns.
Every withdrawal is a partial redemption that is subject to capital gains tax. Long-term capital gains (LTCG) on equity funds held for 12 months or more are 12.5% above ₹1.25 lakh. Debt funds: taxed based on your income level. Only the profits are taxed, not the whole withdrawal.
Yes, you can stop, pause, add to, or take away withdrawals at any time. Changes will take effect in the next cycle, giving you the freedom to change your cash flow needs.
Experts say that 4–6% a year is a good amount to keep things going for 20–30 years. For a corpus of ₹1 crore, you can take out ₹35,000 to ₹50,000 every month. Higher rates could lead to early depletion.
Adds 5–7% to withdrawals each year to keep up with inflation. Starting at ₹40,000 a month and going up 6% each year: Year 2 = ₹42,400, Year 3 = ₹44,944, keeping the same buying power.
Yes, in different schemes with different amounts and times. Diversifies income sources and lowers taxes; takes money out of debt funds every month and equity funds every three months.
When the corpus reaches zero or the minimum balance, SWP stops. Keep an eye on your balance, use withdrawal rates of 4 to 5%, and make changes when the market goes down to avoid this.
There are no penalties, but exit loads may apply (usually 1% within 1 year for equity funds). The LTCG tax is a normal tax, not a penalty.
Yes, but only through NRE/NRO accounts that are subject to repatriation rules. If you invest money from an NRE account, you can get it back. Talk to the fund house about the steps and tax effects that are specific to NRIs.
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