SWP Calculator

A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals, such as monthly or quarterly, based on their financial needs and preferences. It provides a structured way to generate periodic cash flow while the remaining investment continues to compound over time.

An SWP Calculator helps investors estimate how much regular income can be generated from their corpus through systematic withdrawals. It also helps estimate the longevity of the investment corpus and the remaining balance after withdrawals.

The calculator uses the following parameters to calculate different investment outcomes:

• Investment Corpus – The total amount invested in mutual funds.
• Monthly Withdrawal – The amount to be withdrawn periodically.
• Withdrawal Rate (%) – The percentage withdrawn annually from the corpus.
• Expected Return p.a. – The estimated annual return expected from the investment.
• SWP Period (Years) – The duration for which withdrawals will continue.
• Monthly Income Possible – Estimated periodic withdrawal amount.
• Total Withdrawal – Total amount withdrawn during the SWP period.
• Remaining Corpus Value – Estimated balance corpus after withdrawals.
• Corpus Required – Estimated corpus needed to sustain withdrawals.

Lower withdrawal rates generally improve sustainability of the investment corpus. Historically, 8% p.a. is considered a sustainable withdrawal rate.

The investment corpus may reduce or continue growing depending on the portfolio returns and withdrawal amount. Higher returns and lower withdrawals generally help preserve the capital for longer.