SWP Calculator
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your investment at regular intervals (E.g., every month), ensuring a steady cash flow. With a systematic withdrawal plan calculator, you can quickly estimate the most efficient withdrawal schedule and potential returns. It’s a free tool we offer that's available to anyone online.
Use 5paisa’s SWP calculator to plan your finances in a way that best aligns with your goals!
- Final Value
- Total Interest Earned
- Total Withdrawal
Start investing with flat ₹20 brokerage.
| Month | Balance at Begin (₹) | Withdrawal (₹) | Interest Earned (₹) | Balance at End (₹) |
|---|
An SWP calculator is a free, online tool that helps you estimate withdrawals from your mutual fund investments under a Systematic Withdrawal Plan. The best SWP calculators help you determine the optimal withdrawal plan by providing insight into how long your investments can provide a regular stream of income. They help you plan out regular payments like fixed pensions or funds for paying your child’s tuition fees.
For example, if the fixed payment you desire is ₹15,000, you can easily input the withdrawal amount along with your total investment amount and withdrawal duration on our SWP calculator to plan out your future finances.
Also Read: What are Mutual Funds?
Let us assume you have an investment of ₹10,00,000 in an index mutual fund with a systematic withdrawal plan and plan to withdraw ₹20,000 monthly.
This means that withdrawing ₹20,000 every month will reduce your total investment amount. So, after your first month's withdrawal, you will receive ₹20,000, and the remaining balance of ₹9,80,000 will remain invested and continue to gain interest.
By using an SWP calculator online, you can predict how long your funds will last, considering market fluctuations and streamline your planning with our detailed projections.
Also Read: Best SWP Mutual Funds in India
SWP Formula:
Final Value (A) = PMT × [(1 + r/n)^(nt) – 1] / (r/n)
Components:
- A: Estimated investment value
- PMT: Withdrawal amount per interval
- r: Expected annual rate of return
- n: Compounding frequency (usually yearly)
- t: Investment duration in years
Our SWP calculator considers the growth and withdrawal amounts and gives an accurate estimation of your investment’s returns.
It saves time with instant calculations and helps plan your monthly income (withdrawals) while maintaining a considerable remaining principal amount that earns interest further in the tenure. It helps you make an informed decision to meet your financial goals.
Example 1: Calculating the Withdrawal Amount
Let us consider the same example as above and understand the breakdown of your withdrawal and investment amount.
You will need to input your total Investment amount, monthly withdrawal, expected rate of return and years of service into our SWP calculator.
Let us assume that the investment was made for one year with an annual SWP return rate of 15%; the calculation will look like this
| Month | Investment Value | Withdrawal Amount | Remaining Balance | Interest Earned |
| 1 | ₹10,00,000 | ₹20,000 | ₹9,80,000 | ₹12,250 |
| 2 | ₹9,92,250 | ₹20,000 | ₹9,72,250 | ₹12,153 |
| 3 | ₹9,84,403 | ₹20,000 | ₹9,64,403 | ₹12,055 |
| 4 | ₹9,76,458 | ₹20,000 | ₹9,56,458 | ₹11,956 |
Example 2: Calculating SWP Based on Investment Duration
Suppose you want to withdraw your ₹5,00,000 investment over 5 years, with an annual SWP interest rate of 8%. Our calculator will help you determine how much to withdraw each month to sustain your balance for the entire investment period:
| Month | Investment Value | Withdrawal Amount | Interest Earned | Remaining Balance |
| 1 | ₹5,00,000 | ₹10,132 | ₹3,266 | ₹4,93,134 |
| 2 | ₹4,93,134 | ₹10,132 | ₹3,220 | ₹4,86,222 |
| 3 | ₹4,86,222 | ₹10,132 | ₹3,174 | ₹4,79,264 |
| 4 | ₹4,79,264 | ₹10,132 | ₹3,128 | ₹4,72,259 |
Similarly, our MF SWP calculator will give you a detailed estimate for all 60 months and help you finalise an optimal withdrawal amount regardless of your investment amount and tenure.
Disclaimer: Note that the above SWP calculation examples are for illustrative purposes only. In the event that you need further clarity or direction regarding your investments, we recommend consulting a professional or using our professional portfolio advisory service.
Also Read: How To Smartly Use SWP In Mutual Funds?
- Scroll up to the SWP Calculator on this page.
- Enter your initial investment amount and the expected annual return rate.
- Input your desired withdrawal amount.
- Select the withdrawal frequency (monthly, quarterly, etc.).
- View the detailed results, including the withdrawal schedule and final value.
- Easy to Use and Accessible: It is user-friendly and available online, making it easy to access anytime for instant monthly withdrawal plan calculations.
- Accurate Calculations: It reduces human error and provides quick and precise calculations for SWP mutual fund withdrawals.
- Future Planning: It helps you plan your investment withdrawals to match your long-term financial goals, such as retirement or education expenses.
- Informed Decision-Making: Our SWP calculator offers valuable insights into fund performance and sustainability to help you make smarter financial choices.
Frequently Asked Questions
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your investments, usually per month. It provides consistent cash flow while your remaining investment continues to grow, making it an ideal option for meeting recurring expenses.
SWPs provide a steady income stream, enable tax-efficient withdrawals and allow you to manage market risks by avoiding lump-sum withdrawals. They also offer flexibility in withdrawal amounts and intervals, helping you customise plans to suit your financial needs.
To choose the best SWP for monthly income, you must consider:
- Fund’s past performance (preferably over 5 years)
- Interest rate
- Flexibility for all types of investments
- Choice of plans
- Your withdrawal frequency
- Tax implications
Ensure the withdrawal amount doesn’t deplete your investment before your investment tenure ends, especially during market downturns.
The best SWP plans for monthly income typically include debt mutual funds, balanced funds, and hybrid funds. These funds provide consistent returns with moderate risk, making them suitable for generating reliable income streams.
Anyone who wants a consistent monthly cash flow from their lump sum mutual fund investment can invest in SWP plans. This includes investors seeking diversification and the desire to meet their financial goals while funding their necessities or a fixed monthly income.
Yes, you can choose your withdrawal amount. You can decide the amount based on your financial needs, ensuring it aligns with your overall investment strategy and future goals.
SWPs are best used when you need a steady cash flow, such as during retirement, to cover recurring expenses, or to supplement income. They’re also useful for gradually reducing equity exposure in volatile markets.
Absolutely! SWPs are not limited to retirees. Anyone seeking regular income from their investments, including young professionals or families funding education or medical expenses, can benefit from an SWP.
To invest in an SWP, log into your 5paisa account on our website or app, choose a mutual fund scheme, specify the withdrawal amount and frequency and register for the SWP option.
Our systematic withdrawal calculator is available on the 5paisa website and mobile app. You can find the calculator at the top of this page, or go to our official website, click on the “Invest” tab and find the SWP calculator listed under Tools.
Disadvantages include the risk of depleting your investment during prolonged market downturns, reduced growth potential due to regular withdrawals and possible tax implications on capital gains for each withdrawal. The returns are also dependent on market conditions and inflation reducing purchasing power over time.
Yes, SWPs can be tax-efficient. Each withdrawal includes both capital and gains components, with taxes applicable only on the gains. Additionally, for long-term investments, capital gains are taxed at favourable rates and are even tax-free for gains of up to ₹12.5 lakhs in a year (for equity), offering potential savings.
Disclaimer: The calculator available on the 5paisa website is intended for informational purposes only and is designed to assist you in estimating potential investments. However, it is important to understand that this calculator should not be the sole basis for creating or implementing any investment strategy. View More..