SWP Calculator
See how long your investment lasts with a fixed monthly withdrawal, and what is left at the end.
Balance at the end
Lasts the full 10 years
Year-wise withdrawals
| Year | Withdrawn | Returns earned | Balance at year end |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹78,500 | ₹9,58,500 |
| 2 | ₹1,20,000 | ₹75,056 | ₹9,13,556 |
| 3 | ₹1,20,000 | ₹71,325 | ₹8,64,881 |
| 4 | ₹1,20,000 | ₹67,285 | ₹8,12,167 |
| 5 | ₹1,20,000 | ₹62,910 | ₹7,55,077 |
| 6 | ₹1,20,000 | ₹58,172 | ₹6,93,249 |
| 7 | ₹1,20,000 | ₹53,040 | ₹6,26,289 |
| 8 | ₹1,20,000 | ₹47,482 | ₹5,53,771 |
| 9 | ₹1,20,000 | ₹41,463 | ₹4,75,235 |
| 10 | ₹1,20,000 | ₹34,945 | ₹3,90,180 |
If the investment runs out, the table stops in that year and its last withdrawal may be smaller.
How it works
Each month the balance earns the monthly return, then the withdrawal is taken at the end of the month:
Balance next month = Balance × (1 + i) − W
After n months this gives:
Bn = C × (1 + i)n − W × ((1 + i)n − 1) ÷ i
- C = total investment at the start, W = monthly withdrawal
- i = monthly return = expected yearly return ÷ 12 ÷ 100
If W is more than C × i, the balance falls every month and runs out after
n = −ln(1 − C × i ÷ W) ÷ ln(1 + i) months, rounded up
The last withdrawal is then only what is left. At 0% return, the investment lasts C ÷ W months. Total returns earned = total withdrawn + final balance − C.
Worked example
Investment that lasts: ₹10,00,000 (10 lakh) at 8%, withdrawing₹10,000 a month for 10 years (120 months).
- Monthly return i = 8 ÷ 12 ÷ 100 = 0.006667
- (1 + i)120 = 2.21964
- C × (1 + i)120 = ₹22,19,640.23
- W × ((1 + i)120 − 1) ÷ i = ₹18,29,460.35
- Balance left = ₹22,19,640.23 − ₹18,29,460.35 = ₹3,90,179.88
- Total withdrawn = ₹10,000 × 120 = ₹12,00,000
Investment that runs out: ₹5,00,000 at 6%, withdrawing ₹10,000a month.
- Monthly return i = 0.005, so C × i = ₹2,500, less than the withdrawal
- n = −ln(1 − 0.25) ÷ ln(1 + 0.005) = 57.68, so it runs out in month 58 (4 years 10 months)
- The last withdrawal is only ₹6,806.78; total withdrawn = ₹5,76,806.78
Frequently asked questions
What is a systematic withdrawal plan (SWP)?
An SWP lets you withdraw a fixed amount from a mutual fund investment at regular intervals, such as every month, while the rest stays invested. It is often used to create a regular income from a lump sum, for example after retirement.
How does this calculator work?
Each month your balance grows at the expected yearly return ÷ 12, and then the withdrawal is taken at the end of the month. This repeats month by month. If the balance is too small for a full withdrawal, the last withdrawal is whatever is left and the investment has run out.
When will my money run out?
If you withdraw more each month than your investment earns, the balance shrinks and eventually runs out. For example, ₹5,00,000 at 6% with ₹10,000 a month runs out in month 58, after about 4 years 10 months. The calculator shows this whenever it happens within your chosen period.
How much can I withdraw without reducing my investment?
At a steady return, you can withdraw the monthly return itself: investment × yearly return ÷ 12 ÷ 100. For ₹20,00,000 at 12% that is ₹20,000 a month, and the balance stays at ₹20,00,000. Real returns go up and down, so the balance will move even at this level.
Is an SWP the same as a fixed pension?
No. The withdrawal amount is fixed, but the investment's returns are not. In a bad year your balance can fall faster than this calculator shows, and in a good year it can fall more slowly or grow. Review your plan regularly.
Are SWP withdrawals taxed?
Each SWP withdrawal is a redemption of mutual fund units, so any gain on the units redeemed may be taxable. Tax rules change, so check the current rules on the Income Tax Department website or with a tax professional. The amounts shown here are before any tax.
Why will my actual SWP differ from this result?
Real withdrawals redeem units at the NAV on each withdrawal date, and NAVs change daily. Fund charges or exit loads may also apply. This calculator uses a single steady return to give an estimate, not a forecast.