An SWP provides regular income while the rest stays invested. If the withdrawal is below the monthly return the corpus keeps growing. Each withdrawal is partly capital and partly gains, which keeps tax lower than interest income.
How to use the SWP Calculator — Systematic Withdrawal Plan
- Total investment
- Withdrawal per month
- Expected return (p.a.)
- Time period
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the total investment, monthly withdrawal, expected return and period.
Tips
- Figures use the latest published rates; government scheme rates are revised every quarter.
- Choose between the old and new tax regimes carefully – deductions only count in the old regime.
- Keep proofs of investments and rent for your employer and the tax return.
- Use the official portal of each scheme for exact maturity values.
Common mistakes to avoid
- Assuming scheme interest rates are fixed for the whole term.
- Forgetting tax on interest from fixed and recurring deposits.
- Missing the yearly minimum deposit on PPF or Sukanya Samriddhi accounts.
Inputs explained
| Field | What to enter |
|---|---|
| Total investment | Amount in ₹ |
| Withdrawal per month | Amount in ₹ |
| Expected return (p.a.) | In % |
| Time period | In years |
What each result means
- Total withdrawal = [Withdrawal per month]×[Time period]×12
- Final value = max(fvc([Expected return (p.a.)]÷1200, [Time period]×12, [Total investment], 0 – [Withdrawal per month]), 0)
- Withdrawal that preserves capital = [Total investment]×[Expected return (p.a.)]÷1200
Example values
How the main result changes when Total investment changes and everything else stays at the example values above:
| Total investment | Final value |
|---|---|
| 500,000 | 0 |
| 750,000 | 201,161.89 |
| 1,000,000 | 756,071.95 |
| 1,250,000 | 1,310,982.01 |
| 1,500,000 | 1,865,892.07 |
| 2,000,000 | 2,975,712.19 |
Formula
Each month: balance = balance × (1 + r/12) − withdrawalFinal value = P(1 + i)^n − W × ((1 + i)^n − 1) ÷ iMonths it lasts = nper(i, W, P)Worked example
Inputs — Total investment: ₹1,000,000; Withdrawal per month: ₹8,000; Expected return (p.a.): 8 %; Time period: 10 years.
Results — Total withdrawal = ₹960,000.00; Final value = ₹756,071.95; How long the money lasts = 22.5 years; Withdrawal that preserves capital = ₹6,666.67.
Frequently asked questions
What is an SWP?
A plan to withdraw a fixed amount regularly from a mutual fund.
How is SWP taxed?
Only the gains part of each withdrawal is taxed as capital gains.
How much can I withdraw safely?
Less than the expected monthly return keeps the capital intact.
What formula does the SWP Calculator — Systematic Withdrawal Plan use?
Each month: balance = balance × (1 + r/12) − withdrawal.