SWP Calculator
About the SWP Calculator
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from an investment at regular intervals — often monthly — while the remaining balance stays invested and keeps growing. Retirees use it to turn a corpus into a steady income.
This calculator shows what is left of your corpus after a set period of monthly withdrawals, given an expected return on the money that stays invested.
Frequently asked questions
How does an SWP work?
You invest a lumpsum and instruct the fund to pay you a fixed amount each month. Units are sold to fund each withdrawal, while the rest of the corpus keeps earning returns — so the balance falls only if withdrawals outpace growth.
How is the remaining balance calculated?
Final Balance = Corpus × (1 + i)ⁿ − W × ([(1 + i)ⁿ − 1] ÷ i), where W is the monthly withdrawal, i is the monthly return and n is the number of months. It grows the corpus and subtracts the withdrawals plus their lost growth.
Will my SWP corpus run out?
It depends on the balance between your withdrawal rate and the return. Withdraw less than the corpus earns and it can last indefinitely or even grow; withdraw more and it depletes over time. This calculator shows the ending balance for your inputs.
How is SWP taxed?
Each withdrawal is a partial redemption, so only the gain portion is taxed as capital gains — not the whole amount. For equity funds, as of 2026, long-term gains above ₹1.25 lakh a year are taxed at 12.5%. This is more tax-efficient than fully taxable income.
SWP or dividend payout — which is better for income?
An SWP gives you control over the amount and timing and is usually more tax-efficient, since only the gain is taxed. Dividend (IDCW) payouts are taxed in full at your slab and are not fixed. Many retirees prefer an SWP for predictable income.