About the SWP calculator
A systematic withdrawal plan (SWP) redeems a fixed amount from a mutual fund at regular intervals, giving a steady payout while the rest stays invested.
The SWP calculator shows the balance left after a number of years of monthly withdrawals, the total withdrawn, and the month the money would run out if withdrawals exceed growth.
How the SWP calculator works
Each month the balance first grows by one twelfth of the annual return, then the withdrawal is taken. A withdrawal never exceeds what is left; if the balance runs out, the calculator says in which month.
Worked example
- Starting portfolio
- ₹10,00,000
- Monthly withdrawal
- ₹10,000
- Annual rate
- 8%
- Time period
- 10 years
Example inputs
- Remaining portfolio
- ₹3,90,179.88
- Total withdrawn
- ₹12,00,000
- Growth / interest
- ₹5,90,179.88
Calculated result
Why use a SWP calculator?
- Test whether a corpus can fund a monthly income for the years you need.
- Find a withdrawal amount that leaves the capital roughly intact.
- See how a lower return shortens the life of the portfolio.
SWP calculator FAQs
How is an SWP different from a dividend payout?
An SWP pays a fixed amount you choose by redeeming units. A fund’s dividend (IDCW) payout depends on what the fund declares and is not fixed.
How are SWP withdrawals taxed?
Each withdrawal redeems units, so part of it is your original money and part may be a capital gain. Only the gain is taxed, by the fund type and holding period. Check the current rules.
What happens if the portfolio runs out?
In the calculator, withdrawals stop at zero and the depletion month is shown. In a real fund the plan stops when no units are left.
Does the calculator include exit loads?
No. Some funds charge an exit load on units redeemed early; check the scheme document.