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SWP Calculator

Estimate how long your investment corpus will last when you withdraw a fixed amount every month, while the rest stays invested and continues to grow.

The output is an estimate for illustration only, based on the inputs and assumptions you provide. Actual returns, taxes and charges may vary. This is not investment, tax or legal advice.

What is an SWP?

A Systematic Withdrawal Plan, or SWP, lets you withdraw a fixed amount from your mutual fund investment at regular intervals — usually monthly — while the remaining balance stays invested and continues to earn returns. It works in the opposite direction of a SIP: instead of building a corpus through regular contributions, an SWP draws down a corpus you already have, in a structured and predictable way.

This makes it a common choice for anyone who wants a steady, recurring payout from their investments — for example, someone planning a regular income stream after retirement, without having to sell off large chunks of their holdings at once.

How does the SWP Calculator work?

The calculator applies the standard SWP formula, which accounts for monthly withdrawals reducing the corpus while the remaining balance continues to compound:

Final corpus = P × (1 + i)^n − W × [((1 + i)^n − 1) / i] × (1 + i)

Here, P is your starting investment amount, i is the expected monthly rate of return (your annual rate divided by 12), n is the total number of months, and W is your fixed monthly withdrawal amount.

Worked example: Suppose you start with a corpus of ₹10,00,000, withdraw ₹8,000 every month, and expect an annual return of 8% over a 10-year period. By the end of 10 years, you would have withdrawn a total of ₹9,60,000, while your remaining corpus is estimated to be around ₹7,56,200 — meaning the investment growth largely offset what you withdrew, even after a decade of regular payouts.

How do I use the Chola Securities SWP Calculator?

Using the calculator takes four steps.

  • Step 1 — Enter your starting investment amount. This is the corpus you already hold and want to begin withdrawing from.
  • Step 2 — Enter your monthly withdrawal amount. This is the fixed amount you plan to take out each month.
  • Step 3 — Enter your expected rate of return. Use a realistic annual return based on where your corpus is invested.
  • Step 4 — Choose your withdrawal period. Select how many years you plan to continue the withdrawals.

The calculator instantly shows your total amount withdrawn, your remaining corpus, and how the balance is projected to change over time, so you can test different withdrawal amounts and see how sustainable each one is.

Why use the SWP Calculator?

  • Check sustainability — see whether your planned monthly withdrawal is likely to outlast or outpace your corpus.
  • Plan a regular income — useful for structuring predictable monthly payouts from an existing investment.
  • Balance withdrawals against growth — understand how much of your withdrawal is offset by ongoing returns versus how much erodes your principal.
  • Test different scenarios — adjust the withdrawal amount or time period to compare outcomes before committing.

The result is a projection based on the inputs and assumed return rate you provide, not a guaranteed outcome. Actual investment returns vary with market performance, so use this as a planning tool rather than a precise forecast.

Frequently Asked Questions

A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund investment at regular intervals, while the remaining balance stays invested and continues to earn returns. It's commonly used to generate a steady income from an existing corpus.

An SIP is a method of building a corpus through regular contributions over time. An SWP works the other way — it draws down a corpus you already have, through regular fixed withdrawals, while the remaining amount stays invested.

It depends on your withdrawal rate relative to your investment's growth rate. If your withdrawals are higher than what your returns generate, the corpus will gradually shrink and could deplete over time. If returns outpace withdrawals, the corpus can remain stable or even grow.

In most cases, yes — fund houses typically allow you to modify, pause, or stop your SWP withdrawals, subject to the terms of the specific scheme. Check with your fund house for the exact process.

Yes, in general. Each withdrawal from an SWP is treated as a partial redemption of mutual fund units, and capital gains tax may apply depending on the fund type and holding period. It's best to consult a tax advisor for guidance specific to your situation.

There's no fixed answer, as it depends on your expected returns, the corpus size, and how long you need the withdrawals to last. As a general planning principle, withdrawing less than your expected annual return gives the corpus a better chance of lasting, or even growing, over time.