What is SWP?
A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount monthly from a mutual fund corpus while the remaining balance continues to earn returns. SWPs are commonly used to generate a regular income in retirement.
Formula
Each month, the balance grows by the monthly return and the withdrawal is subtracted:
Balance(m) = Balance(m−1) × (1 + i) − W i = annual return / 12 / 100 W = monthly withdrawal
How to use this calculator
Enter your starting corpus, planned monthly withdrawal, the expected return on the remaining balance and the period you want to draw for. If withdrawals exceed what the corpus can sustain, the simulation stops when the balance hits zero.