📉 SWP Calculator
Estimate how your investment balance evolves with regular monthly withdrawals.
Frequently Asked Questions
How do I use the SWP Calculator?
Enter your Total Investment, Monthly Withdrawal amount, Expected Annual Return, and an optional Annual Step-up on Withdrawal percentage, then set the Withdrawal Period in years and click Calculate SWP. You'll see your Final Balance, Total Withdrawn, a balance projection chart, and a year-by-year (or month-by-month) breakdown showing when your corpus runs out, if at all.
How does this calculator order growth and withdrawal each month?
Each month, the expected return is applied to the opening balance first, and the withdrawal amount is then deducted from the grown balance. This is the convention used by most mutual fund SWP calculators. If withdrawals were deducted before growth instead, the corpus would deplete slightly faster — the difference compounds and can shift the depletion point by months or even years over a long period.
What happens when my balance reaches zero?
Once the balance is exhausted, no further withdrawals are possible. The calculator shows the exact year and month this happens, and the balance is shown as ₹0 for all subsequent periods in the table and chart.
Is the expected return rate guaranteed?
No. The "Expected Annual Return" is an assumption you provide for illustration. Actual mutual fund returns fluctuate with market performance and are not guaranteed — this calculator is for planning purposes only, not financial advice.
How is the monthly return rate calculated from the annual rate?
We convert the annual rate to an equivalent monthly rate using (1 + annual rate)^(1/12) - 1, rather than simply dividing the annual rate by 12. This compounding-equivalent conversion is the convention used by most SWP calculators and gives a more accurate monthly growth figure.
How is SWP different from a SIP?
A SIP (Systematic Investment Plan) involves regular contributions that build up a corpus over time. An SWP (Systematic Withdrawal Plan) does the opposite — you start with a lump sum and withdraw a fixed amount regularly, typically used during retirement for a steady income. See our SIP Calculator to plan the accumulation phase.
How are SWP withdrawals taxed?
Each SWP withdrawal is treated as a partial redemption of mutual fund units, so only the gain portion of that withdrawal is taxed (not the full amount). For equity funds, gains on units held over 12 months are taxed at 12.5% above ₹1.25 lakh per year (LTCG), while units held 12 months or less are taxed at 20% (STCG). This makes SWP more tax-efficient than receiving the same amount as fully-taxable FD interest.
How does the Annual Step-up on Withdrawal work?
If you set a step-up percentage, your monthly withdrawal amount increases by that percentage at the start of each new year (every 12 months), helping your income keep pace with rising expenses or inflation. A higher step-up will cause your corpus to deplete faster than a flat withdrawal amount, all else being equal.