How to use the SWP Calculator
- Enter the total amount you have invested.
- Enter the amount you want to withdraw every month.
- Enter the yearly return you expect on the remaining balance.
- Enter the number of years you want to withdraw. The result shows the balance left, the total withdrawn and whether the money lasts the full period.
Formula used
Each month: balance = balance × (1 + r ÷ 12) − withdrawal. The loop runs for every month of the period or until the balance reaches zero.
Worked example
Here is the SWP Calculator worked through with the example values shown above, so you can check each step by hand.
| Inputs | |
|---|---|
| Total investment | ₹10,00,000 |
| Monthly withdrawal | ₹8,000 |
| Expected return (per year) | 8 % |
| Withdrawal period | 10 years |
| Result | |
| Balance at the end | ₹7,56,072 |
| Total withdrawn | ₹9,60,000 |
| How long the money lasts | Full 10 years |
Year-by-year withdrawal statement
How the default plan pays you every month while the remaining balance keeps earning returns.
| Year | Total withdrawn | Balance left |
|---|---|---|
| 1 | ₹96,000 | ₹9,83,400 |
| 2 | ₹1,92,000 | ₹9,65,422 |
| 3 | ₹2,88,000 | ₹9,45,953 |
| 4 | ₹3,84,000 | ₹9,24,867 |
| 5 | ₹4,80,000 | ₹9,02,031 |
| 6 | ₹5,76,000 | ₹8,77,300 |
| 7 | ₹6,72,000 | ₹8,50,516 |
| 8 | ₹7,68,000 | ₹8,21,509 |
| 9 | ₹8,64,000 | ₹7,90,094 |
| 10 | ₹9,60,000 | ₹7,56,072 |
How the calculation works
Each month the remaining balance grows by one twelfth of the yearly rate, and then your withdrawal is taken out. The calculator repeats this for every month. If the balance can no longer cover a withdrawal, it stops and tells you exactly how long the money lasted.
For ₹10,00,000 invested at 8% with ₹8,000 withdrawn every month for 10 years, you withdraw ₹9,60,000 in total and still have ₹7,56,072 left, because the returns earned on the remaining balance pay for part of every withdrawal.
Sustainable withdrawal versus draining the corpus
The key question is whether the monthly return on your balance is more than your withdrawal. At 8% a year, ₹10,00,000 earns about ₹6,667 a month, so a withdrawal of ₹8,000 is slightly above the return and the balance falls only gradually, since the returns pay for most of each withdrawal. Raise the withdrawal to ₹10,000 and the balance after 10 years is ₹3,90,180. At ₹15,000 a month the money does not last the full period: it runs out after 7 years, 5 months.
Use the calculator to find the withdrawal at which the balance just reaches zero at the end of your period. That is your maximum, and a prudent plan stays well below it.
Risks to keep in mind
The biggest risk is that returns are not steady. If markets fall early in the withdrawal period, you sell units at low prices, and the corpus can be used up faster than a constant-return calculation shows. This is called sequence risk.
Inflation is the other risk. A fixed withdrawal of ₹8,000 buys less every year, so many people increase it over time, which this simple calculator does not model. Taxes on gains and exit loads also reduce what you receive.
Choosing a withdrawal amount
A common approach is to keep the yearly withdrawal to a modest percentage of the corpus, and to review the plan every year. Keeping part of the money in safer investments also helps cover a few years of withdrawals even when markets fall.
These are general ideas, not advice. A qualified financial planner can build a plan around your income, expenses and tax position.
Frequently asked questions
What does SWP stand for?
SWP stands for systematic withdrawal plan. It is an instruction to take a fixed amount from an investment at regular intervals, usually every month.
What happens if the balance runs out?
Then the withdrawals stop. The calculator shows how many years and months the money lasted.
Is the return guaranteed?
No. The calculator assumes the same return every month. Real returns vary, and falling markets early on can shorten the life of your corpus.
Are taxes included?
No. Each withdrawal can include a taxable gain depending on the product and holding period, and tax rules change. Check with a tax adviser.
Can I increase my withdrawal every year?
This calculator uses a fixed amount. To model increases, run it in stages with a new corpus and withdrawal for each period.
How is SWP different from a dividend plan?
In an SWP you decide the amount and date. Dividends depend on the fund and are not guaranteed, so they cannot give a predictable income.
This calculator gives estimates for information only. Actual figures from a bank, employer, tax authority or doctor may differ. It is not financial, tax, legal or medical advice.