Reviewed 3 October 2026 by Dhruv Patil. Free planning tool. Results are estimates based on your inputs; no login is needed.
How to use the SWP calculator
- Enter an existing investment amount and the proposed monthly withdrawal.
- Choose an assumed return and duration.
- Review total withdrawals, final balance and the year-by-year schedule.
- Try a lower return or larger withdrawal to see how quickly the balance changes.
- Use target mode for a finite period. It assumes the balance can fall to zero at the end; it does not preserve your original capital.
SWP calculation formula and methodology
For each month the forward model uses closing balance = opening balance × (1 + i) − withdrawal, where i is the annual rate divided by 1,200. Growth occurs before the end-of-month withdrawal. If the available balance is smaller than the withdrawal, only the remaining amount is paid in the model.
Target mode uses corpus = W × [1 − (1 + i)^(-n)] / i, where W is the monthly withdrawal and n is the number of months. At zero return the required corpus equals W × n. This is a constant-rate annuity estimate, not a mutual-fund payout commitment.
₹5 lakh SWP with ₹5,000 monthly withdrawals
With a ₹5,00,000 starting corpus, ₹5,000 withdrawn at each month-end and an assumed 6% nominal annual return for ten years, total modelled withdrawals are ₹6,00,000 and the estimated remaining balance is about ₹90,302. At zero return the same starting corpus funds 100 monthly withdrawals, or eight years and four months. Both are worked examples before taxes and loads, not forecasts.
Why a positive final balance does not mean a safe SWP
The tool uses one steady rate. Real markets rise and fall, and early losses combined with withdrawals can exhaust a portfolio sooner than a smooth average suggests. This is sequence-of-returns risk. Inflation can also raise your spending needs. There is no universal 6%, 8% or other withdrawal rate that guarantees an Indian portfolio lasts forever.
A cash reserve may reduce the need to sell investments immediately after a fall, but a bucket strategy does not remove market, credit or liquidity risk. Read AMFI's mutual-fund risk guidance before treating a model as an income plan.
SWP versus SIP and a bank deposit
A SIP adds money regularly; an SWP redeems units regularly. An SWP payment can include your original money as well as gains. It is not interest earned on a bank deposit. Compare the need for predictable cash, product risks, charges and tax treatment rather than assuming one is always superior.
Do not invest borrowed money or money needed for near-term fees merely to create an SWP. A student receiving a lump sum may simply need accessible savings and a budget.
Taxes, exit loads and withdrawal dates
This calculator does not compute personal tax or exit loads. Treatment depends on the fund type, acquisition dates, holding periods, tax law and investor status. Exit loads and SWP registration or cancellation rules are scheme-specific. Check the current scheme information document and provider's timetable. The calculation assumes month-end cash flow; actual redemptions have processing and settlement requirements.
Frequently asked questions
How much corpus is needed for ₹15,000 a month?
It depends on the period, assumed return and whether you want capital left at the end. Use target mode and compare assumptions. The displayed corpus is for a finite period with depletion, not guaranteed permanent income.
Does an SWP preserve my principal?
No. A payment redeems units. If withdrawals and losses exceed growth, the investment shrinks.
Can I use a zero-return assumption?
Yes. It makes the arithmetic clear: corpus divided by monthly withdrawal gives the number of full payments, ignoring charges.
Can I pause my actual SWP?
Ask your fund house or provider about its current rules and notice period. A calculator does not submit, change or cancel instructions.
Next: SIP calculator for monthly investments, loan calculator for repayment commitments, or planning a ₹15,000 monthly SWP.