SWP Calculator

Plan your systematic withdrawals from mutual funds and estimate your returns over time

Input Parameters

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₹
%
Years

Results

Understanding the SWP Calculator

A Systematic Withdrawal Plan (SWP) calculator helps investors plan regular withdrawals from their lump-sum mutual fund investments while projecting returns and remaining corpus.

What is an SWP?

A Systematic Withdrawal Plan (SWP) allows investors to withdraw fixed amounts from their mutual fund investments at regular intervals. It's ideal for generating consistent income while your remaining investment continues to grow.

This strategy is particularly beneficial for retirees and senior citizens who need regular income from their investments.

Benefits of SWP

  • Regular income stream from your investments
  • Flexibility to customize withdrawal amount and frequency
  • Tax-efficient withdrawals compared to fixed deposits
  • Growth potential for remaining investment
  • Protection against market volatility through averaging

How to Use the Calculator

  1. Enter your total investment amount
  2. Specify your desired monthly withdrawal
  3. Set your expected annual return rate
  4. Choose your investment duration in years
  5. Review the results and chart to plan your withdrawals

How Does an SWP Work?

Let's take an example: Suppose you invest ₹1,00,000 in a mutual fund for 1 year, withdrawing ₹10,000 monthly. Each withdrawal reduces your principal, but the remaining balance continues to earn returns.

Month Amount Remaining Withdrawal Amount Interest Earned
1 ₹1,00,000 ₹10,000 ₹408
2 ₹90,408 ₹10,000 ₹403
3 ₹80,811 ₹10,000 ₹398
12 ₹43,214 ₹10,000 ₹352

Frequently Asked Questions

Can I use an SWP for short-term goals?
Yes, you can customize the tenure to match your needs, even for short-term goals of 1-5 years. The calculator helps you determine the optimal withdrawal amount based on your timeframe.
Is there a minimum withdrawal limit?
Most mutual funds allow withdrawals as low as ₹1,000 per month, but this can vary between fund houses. Check with your specific fund provider for their minimum requirements.
How does compounding affect SWP returns?
While you withdraw a portion of your investment, the remaining amount continues to benefit from compounding. This helps your investment grow over time, potentially extending the longevity of your corpus.
What's the difference between SWP and SIP?
A Systematic Investment Plan (SIP) involves regular investments into mutual funds, while an SWP involves regular withdrawals from your mutual fund investments. SIP is for wealth creation, while SWP is for income generation.