How is SWP calculated?

SWP is calculated month by month: the remaining balance first grows by the expected rate of return, and the fixed withdrawal amount is then subtracted from that grown balance. The formula is Balance(n) = Balance(n-1) x (1 + r/12) - W, where r is the expected annual return and W is the fixed monthly withdrawal. This repeats every month until either the chosen duration ends or the balance reaches zero.

SWP vs SIP — what is the difference?

An SIP (Systematic Investment Plan) is an accumulation tool — you invest a fixed amount every month to build a corpus over time. An SWP (Systematic Withdrawal Plan) is a decumulation tool — you withdraw a fixed amount every month from an existing corpus, typically after the accumulation phase is complete. Many investors run an SIP during their working years and then switch to an SWP after retirement to convert accumulated wealth into regular income.

Is SWP suitable for retirement?

SWP is widely used for retirement income because it provides a predictable, regular payout while allowing the remaining balance to stay invested and keep growing. Whether it fully suits a given retiree depends on the withdrawal rate relative to the expected return — withdrawing more than the corpus earns will gradually deplete the balance, while withdrawing less can let it grow even while making regular payouts.

Can I change my withdrawal amount?

Yes, most SWP facilities let investors increase, decrease, pause, or stop withdrawals at any time, and some also allow switching between a fixed amount and a percentage-based withdrawal. This calculator assumes a constant monthly withdrawal for simplicity, but real-world SWPs are usually flexible and can be adjusted as your income needs change.

Regular Income From Your Investments

SWP Calculator — Systematic Withdrawal Plan (2026)

Estimate how much regular income you can withdraw from an existing investment while tracking your remaining balance. Enter your initial investment, monthly withdrawal, expected return, and duration to see how long your money lasts.

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Instant calculations

Built for retirement income

SWP Calculator

Enter your investment and withdrawal details below to project your remaining balance.

Initial Investment (₹)

The lump sum currently invested, e.g. in a mutual fund

Monthly Withdrawal (₹)

The fixed amount you plan to withdraw every month

Expected Annual Return (%)

Expected annual rate of return on the remaining balance

Investment Duration (Years)

How long you plan to keep withdrawing

Results

Remaining Balance

₹3,001,000

Total Amount Withdrawn

₹3,600,000

Total Interest Earned

₹3,601,000

Your investment lasts the full 15-year duration, with a remaining balance at the end.

Withdrawing ₹20,000/month from an initial ₹3,000,000 over 15 years leaves a balance of ₹3,001,000.

Now that you have your projection, here's what to do next:

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What is an SWP?

A Systematic Withdrawal Plan (SWP) is a facility that lets investors withdraw a fixed amount from an existing lump sum investment — typically a mutual fund — at regular intervals, usually monthly. The remaining balance stays invested and continues to earn returns, so the corpus can keep growing even while regular payouts are made.

SWP is essentially the reverse of a SIP (Systematic Investment Plan). Where a SIP builds a corpus through regular contributions, an SWP converts an existing corpus into a regular income stream. This makes it a popular choice for retirees, or anyone who wants a predictable monthly payout from savings without having to sell off investments manually.

Use the SWP Calculator above to see how long your investment will last at your chosen withdrawal rate, or explore our Retirement Calculator if you're still building your corpus.

How SWP Works

Each month, your balance grows by the expected rate of return before your withdrawal is deducted — the outcome depends on how the two compare.

Growth and Withdrawal Happen Together

Every month, the remaining balance earns returns first, and the fixed withdrawal is then subtracted. If the monthly return exceeds the withdrawal, the balance grows over time. If the withdrawal exceeds the return, the balance gradually shrinks.

The Withdrawal Rate Determines the Outcome

A sustainable SWP keeps the annual withdrawal rate close to or below the expected annual return, so the corpus can support withdrawals indefinitely. Withdrawing significantly more than the return earns will deplete the balance before the end of the planned duration.

This is why the SWP Calculator above shows both your remaining balance and a status message — it tells you whether your investment lasts the full duration you enter, or whether it would run out sooner at your chosen withdrawal amount.

SWP Formula

The formula used to project your remaining balance, applied month by month.

Balance(n) = Balance(n-1) × (1 + r/12) − W

Balance(0) = Initial Investment (the starting corpus)

r = Expected annual return (as a decimal, e.g. 8% = 0.08)

W = Fixed monthly withdrawal amount

n = The month number (repeats until duration ends or balance reaches zero)

Worked Example

Month 1: ₹30,00,000 × (1 + 0.08/12) − ₹20,000 ≈ ₹30,00,000

An initial investment of ₹30,00,000 with an ₹20,000 monthly withdrawal at 8% expected annual return roughly holds steady each month, because the monthly growth is close to the withdrawal amount. Repeated over 15 years (180 months), this leaves a remaining balance of approximately ₹30,01,000, after withdrawing a total of ₹36,00,000.

Retirement Income Examples

Real scenarios showing how the withdrawal rate relative to the expected return determines whether your corpus grows, holds steady, or depletes.

Conservative Withdrawal (Corpus Grows)

₹50,00,000 initial, ₹25,000/month withdrawal, 8% annual return, over 20 years:

Withdrawal rate ≈ 6% vs 8% return

Balance grows to ≈ ₹99,07,500 after ₹60,00,000 withdrawn

Balanced Withdrawal (Corpus Preserved)

₹30,00,000 initial, ₹20,000/month withdrawal, 8% annual return, over 15 years:

Withdrawal rate ≈ 8% vs 8% return

Balance ≈ ₹30,01,000 after ₹36,00,000 withdrawn

Aggressive Withdrawal (Depletion Risk)

₹10,00,000 initial, ₹15,000/month withdrawal, 6% annual return:

Withdrawal rate ≈ 18% vs 6% return

Corpus fully depletes in ≈ 6.8 years

Higher Corpus, Higher Income

₹1,00,00,000 initial, ₹60,000/month withdrawal, 9% annual return, over 25 years:

Withdrawal rate ≈ 7.2% vs 9% return

Balance grows to ≈ ₹2,68,20,000 after ₹1,80,00,000 withdrawn

SWP vs SIP

SIP and SWP sit on opposite sides of an investor's journey — one builds wealth, the other distributes it.

SWP (Systematic Withdrawal Plan)

Best when you already have a corpus and need regular income from it
Decumulation phase — money flows out of the investment on a schedule
Remaining balance keeps earning returns between withdrawals
Commonly used after retirement to convert savings into monthly income

SIP (Systematic Investment Plan)

Best when investing gradually from regular income to build a corpus
Accumulation phase — money flows into the investment on a schedule
Reduces timing risk through rupee cost averaging
Commonly used during working years to build the corpus an SWP later draws from

Many investors use both in sequence — running a SIP for years or decades to accumulate wealth, then switching to an SWP once regular income is needed, such as after retirement.

Advantages and Risks

Advantages

Provides a predictable, regular income stream from an existing corpus
Remaining balance stays invested and can continue to grow between withdrawals
Withdrawal amount can usually be increased, decreased, paused, or stopped
Avoids the need to manually redeem investments each time income is needed

Risks

Withdrawing more than the corpus earns will gradually deplete the balance
Returns are not guaranteed — actual performance can be lower than expected in a given year
Market downturns early in the withdrawal period can shorten how long the corpus lasts
Requires periodically reviewing the withdrawal rate against actual portfolio performance

Related Financial Tools

Explore other calculators to plan your complete investment and retirement income strategy.

Frequently Asked Questions

Answers to common questions about SWPs, withdrawals, and retirement income planning.

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