What is a SWP Calculator?
A Systematic Withdrawal Plan (SWP) is the mirror image of a SIP: instead of investing every month, you redeem a fixed amount from an existing corpus every month, while the rest stays invested and keeps earning returns. It's commonly used to generate a regular "income" in retirement without fully liquidating a portfolio at once.
Enter your starting corpus, the monthly amount you plan to withdraw, and an expected return — the calculator simulates the balance month by month and flags whether (and when) it would run out.
How the balance is projected
Each month the remaining balance earns the monthly return first, then the withdrawal is deducted. This is simulated month by month rather than with a single formula, so it correctly shows if and when the corpus is fully depleted.
Frequently asked questions
What withdrawal rate is considered sustainable?
A common rule of thumb is withdrawing no more than 4–6% of the corpus annually if you want it to last multiple decades, though the right number depends heavily on your actual expected return and time horizon.
What happens if my withdrawal exceeds the return?
The balance shrinks over time and will eventually hit zero — the calculator shows the month this happens, if it happens within your chosen period.
Are SWP withdrawals taxed?
Each withdrawal is treated as a partial redemption and taxed as capital gains on the gain portion, not the full amount — the applicable rate depends on the fund type and holding period.