Total Investment
₹ 10,00,000
Total Withdrawn
₹ 12,00,000
Final Value
₹ 11,48,250
Total Gain / Loss
₹ 13,48,250
About the SWP (Systematic Withdrawal Plan) Calculator
Our free SWP Calculator helps mutual fund investors and retirees plan regular periodic cash flows by withdrawing a fixed amount from their accumulated corpus while the remaining balance continues to compound.
How SWP Returns Are Calculated
A Systematic Withdrawal Plan (SWP) operates by compounding your remaining investment balance monthly while deducting your periodic cash withdrawal:
$$\text{Ending Balance}_m = (\text{Beginning Balance}_m \times (1 + i)) - \text{Withdrawal}$$
Where:
- Beginning Balance: The portfolio value at the start of the month
- i: Monthly return rate ($\text{Annual Rate} \div 12 \div 100$)
- Withdrawal: The fixed monthly payout amount
How to Use the Calculator
Simply enter your parameters or adjust the interactive sliders:
- Initial Investment: The total lump-sum corpus you start with.
- Monthly Withdrawal: The amount you wish to withdraw every month.
- Expected Annual Return Rate: The anticipated compounding growth rate of your remaining investment.
- Time Period: The duration of the withdrawal plan in years.
Click the Calculate button to instantly view your total investment, total withdrawn cash, final remaining portfolio value, and overall net gain or loss.
Frequently Asked Questions (FAQs)
What are the key advantages of using an SWP?
An SWP provides a steady and predictable cash flow (ideal for retirees), instills financial discipline, and allows your remaining capital to stay invested and grow through market compounding.
Can my SWP corpus ever run out?
Yes. If your monthly withdrawal amount exceeds your investment's monthly earnings (principal growth), your portfolio balance will gradually deplete until it reaches zero.
How are SWP withdrawals taxed?
Each SWP installment is treated as a partial redemption of units. Capital gains tax applies only to the profit portion of each withdrawal, depending on whether the mutual fund is equity-oriented or debt-oriented and your holding period.
