SWP Calculator
Plan a systematic withdrawal. Enter a lump sum, an expected annual return, the fixed amount you want to take out each month and a time period to see whether the corpus lasts, how much you withdraw in total and what is left at the end.
How to use the SWP calculator
- Enter the lump sum you have invested and an expected annual return.
- Set the fixed amount you want to withdraw each month and the number of years.
- Review the final balance, total withdrawn and whether the corpus runs out.
Examples
1,000,000 at 8% withdrawing 5,000 a month for 20 years
investment 1000000, return 8%, withdrawal 5000/month, years 20
the corpus keeps growing and ends well above the starting amount
Frequently asked questions
What is a systematic withdrawal plan (SWP)?
An SWP lets you withdraw a fixed amount from an invested lump sum at regular intervals, usually monthly. The remaining balance stays invested and keeps earning a return, so it is often used to draw a steady income from savings.
How is an SWP different from a SIP?
A SIP pays money into an investment every month to build a corpus. An SWP does the opposite: it pays money out of an existing corpus every month. One accumulates, the other distributes.
Will my money last the whole period?
It depends on the balance between growth and withdrawals. If your monthly withdrawal is smaller than the monthly return, the corpus can keep growing. If it is larger, the balance shrinks and may run out. The calculator shows the exact month it would deplete.
How is the balance calculated each month?
Each month the balance first grows at the monthly rate (annual return divided by 12), then the fixed withdrawal is subtracted. This repeats for every month in the plan, and the last withdrawal is capped at whatever is left.
Are withdrawals from an SWP taxed?
This is general information, not tax advice. In many places each withdrawal is treated partly as return of capital and partly as gains, and only the gains portion may be taxable. Rules vary by country and product, so check your local tax treatment.
Does this account for inflation or fees?
No. The figures are a nominal projection before inflation, fund or platform fees and taxes. A fixed monthly withdrawal also loses purchasing power over time as prices rise.
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