SWP Calculator
An SWP calculator helps you estimate how a starting investment corpus changes when you withdraw a fixed amount every month and the remaining balance continues to earn returns. It is especially useful for retirement income planning.
What this SWP calculator shows
The schedule shows opening balance, monthly growth, withdrawal amount, and closing balance for each month.
That helps you see whether a withdrawal plan looks sustainable or whether the corpus may decline too quickly.
Why it is useful
SWP planning is widely used for retirement income, income from mutual fund holdings, and phased withdrawals from a large corpus.
By adjusting return assumptions and withdrawal values, you can compare aggressive and conservative withdrawal strategies.
Formula Used for SWP Projection
In a month-wise SWP schedule, the balance first grows by the monthly return and then the chosen withdrawal is deducted. This is repeated for every month in the timeline.
Closing Balance = Opening Balance + (Opening Balance x i) - W
Where,
- i = monthly return rate
- W = monthly withdrawal amount
How the SWP schedule is generated
- Start with the investment corpus as the opening balance.
- Calculate that month's growth using the monthly rate.
- Deduct the monthly withdrawal from the updated balance.
- Store the closing balance and carry it into the next month.
- Continue until the selected duration ends or the corpus is exhausted.
Examples
Example 1: Retirement withdrawal plan
Suppose a retiree starts with 1,000,000, earns 8% annually, and withdraws 8,000 every month.
- Opening corpus = 1,000,000
- Monthly return rate = 8% / 12
- Monthly withdrawal = 8,000
- Each month the remaining corpus earns returns before the next withdrawal cycle continues.
- If withdrawals are too high relative to returns, the corpus will gradually decline over time.
Frequently Asked Questions
What is a SWP calculator?
A SWP calculator estimates how a portfolio behaves when a fixed amount is withdrawn regularly while the remaining balance keeps compounding.
Can I use this for retirement withdrawal planning?
Yes. It is especially useful for estimating how long a corpus may last during retirement under different withdrawal assumptions.
Does the SWP calculator show a month-wise schedule?
Yes. The schedule includes growth, withdrawal, and closing balance for each month.