SWP Calculator

Total Investment



Withdrawal per month



Expected return rate (p.a)




Time period




Total Investment:


Total Withdrawal:


Final Value:


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Systematic Withdrawal Plan (SWP)

A Systematic Withdrawal Plan, commonly known as SWP, is a financial strategy that allows investors to receive a predetermined amount of money at regular intervals from their investments. SWP is often used as a means to create a consistent income stream, manage cash flow, or meet specific financial needs while keeping the invested capital intact.


How does the SWP Calculator work?

Our SWP Calculator is designed to simplify the process of planning and executing your systematic withdrawals. It would require the following inputs:

  • Total Investment: The initial sum you've invested.
  • Withdrawal per Month: The fixed amount you wish to withdraw regularly.
  • Expected Return Rate (p.a.): The anticipated annual return on your investment.
  • Time Period: The duration for which you plan to make withdrawals.

Based on these inputs, the calculator provides you with crucial information:

  • Total Investment: The sum you initially invested.
  • Total Withdrawal: The cumulative amount you will withdraw over the specified time period.
  • Final Value: The remaining balance after taking out regular withdrawals, considering the expected return rate on your investment.

For example, consider an individual investing ₹50,000 for one year while maintaining a systematic monthly withdrawal of ₹1,000, all within an investment yielding a 10% interest rate(per annum). In this scenario, the individual would make total withdrawals of ₹12,000 over the year, and the investment would stand at ₹42,566 at the end of the year, accounting for both the withdrawals and the earned interest.

This example is illustrated in the table below:

Month Balance at Beginning Withdrawal Interest Earned Total Balance
1 ₹50,000 ₹1,000 ₹408 ₹49,408
2 ₹49,408 ₹1,000 ₹403 ₹48,812
3 ₹48,812 ₹1,000 ₹398 ₹48,210
4 ₹48,210 ₹1,000 ₹393 ₹47,604
5 ₹47,604 ₹1,000 ₹388 ₹46,992
6 ₹46,992 ₹1,000 ₹383 ₹46,375
7 ₹46,375 ₹1,000 ₹378 ₹45,753
8 ₹45,753 ₹1,000 ₹373 ₹45,126
9 ₹45,126 ₹1,000 ₹368 ₹44,494
10 ₹44,494 ₹1,000 ₹362 ₹43,856
11 ₹43,856 ₹1,000 ₹357 ₹43,212
12 ₹43,214 ₹1,000 ₹352 ₹42,566


Benefits of SWP Investments

  • Regular Income Stream: SWP provides a reliable source of income. This is especially valuable for retirees or individuals seeking a consistent cash flow to cover living expenses, medical bills, or other financial needs.
  • Capital Preservation: One of the key advantages of SWP is that it allows you to potentially preserve your invested capital. While you receive regular payouts, the investment can continue to grow, offsetting the withdrawals. This is crucial for those who wish to ensure their financial security while maintaining their long-term financial goals.
  • Flexibility in Withdrawals: SWP offers flexibility by allowing you to customize both the withdrawal amount and frequency. This adaptability is valuable when your financial needs change over time. Whether you need more funds for a specific expense or can reduce withdrawals in times of plenty, SWP is designed to accommodate your requirements.
  • Tax Efficiency: Depending on how you're investing and your personal finances, SWP can provide tax benefits. To optimize your tax liability, it's crucial to comprehend the tax consequences of your SWP, and seeking advice from a tax advisor can offer valuable insights.
  • Customized Financial Goals: SWP can be tailored to various financial objectives. Whether you're planning for retirement, funding a child's education, or saving for a special purchase, SWP can help you reach these goals systematically.
  • Long-Term Financial Planning: SWP assists in comprehensive financial planning by providing a predictable and structured income stream. This makes budgeting and managing expenses more manageable and allows you to maintain financial stability over extended periods.
  • Immediate Capital Deployment: SWP allows you to put your invested capital to work immediately. This is particularly useful when you have a substantial sum available, such as an inheritance or a lumpsum investment, and wish to convert it into a steady income stream.
  • Reduced Market Timing Concerns: With SWP, you can reduce the need for market timing. Unlike lumpsum withdrawals, which can be subject to market volatility, SWP offers a more systematic and disciplined approach to managing your finances.