What is SWP?
SWP (Systematic Withdrawal Plan) is the opposite of SIP. Instead of investing a fixed amount monthly, you withdraw a fixed amount from your mutual fund corpus every month. It's ideal for retirees or anyone who needs regular income from their investments.
The remaining corpus continues to earn returns, so with a reasonable withdrawal rate (4-6% annually), your money can last much longer than simple division would suggest.
Formula
Each month: New Balance = (Previous Balance × (1 + monthly return rate)) − Monthly Withdrawal
The corpus depletes when the balance reaches zero.
For ₹50 Lakhs at 8% return with ₹30,000/month withdrawal: - Corpus lasts approximately 27+ years - Total withdrawn ≈ ₹97+ Lakhs
The key insight: at 8% return, you can safely withdraw ~₹33,000/month from ₹50 Lakhs indefinitely.
How to use this SWP Calculator?
1. Enter your total investment corpus. 2. Set the monthly withdrawal amount you need. 3. Enter the expected annual return rate. 4. See how many months/years your corpus will last.