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SWP Calculator

An SWP calculator is used to calculate the amount that you will earn from your investment in an SWP or Systematic Withdrawal Plan. The SWP calculator is thus a useful tool that will help you to easily choose the right SWP scheme for yourself, based on the returns that you will get from the scheme.

Total Investment

Monthly Withdrawal



Expected Returns




Select Duration


1 Yr

30 Yrs

Invested Amount

Total Withdrawal

Final value

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What is an SWP?

A Systematic Withdrawal Plan (SWP) is an investment strategy offered by mutual funds that allow investors to withdraw a predetermined amount of money from their investment regularly. It is the opposite of a Systematic Investment Plan (SIP), where investors regularly invest a fixed amount in a mutual fund.

In order to invest in an SWP, you have to invest a one-time, lump sum amount into the fund. At the end of every month, a fixed amount of money will be transferred to you from the investment. The mutual fund will redeem a certain number of units in order to pay you that monthly amount. Suppose, you invested in 1,000 units of the fund in January 2023 and the fixed monthly withdrawal amount is ₹1,000. Now assume that at the end of January, the NAV of the fund units was ₹100 per unit. Hence, the mutual fund will redeem 10 units and pay you ₹1,000. But suppose at the end of February, the NAV of the fund was ₹200 per unit. Then the mutual fund will have to redeem only 5 units in order to pay you the fixed ₹1,000. At the end of February, you will thus be left with 985 units of the mutual fund.

Now at the end of each month, after the fixed amount is withdrawn, the amount by which the remaining investment had grown will be added to the balance amount. This will continue throughout the investment duration.

Example of an SWP

An SWP helps you generate both monthly returns as well as an accumulated return at the end of the investment’s duration. For example, suppose that you invested ₹1,00,000 for 12 months in an SWP that gives monthly income or withdrawal of ₹5,000 at 10% annual rate of return.

This means that at the end of each month, ₹5,000 will be removed from the balance at the beginning of the month and an interest of (10/12=0.8333%) per month will be added to the remaining balance. This remaining balance combined with the interest will become the balance at the beginning of the next month.

Therefore, your investment schedule will look something like this:


Balance at the beginning of the month (in ₹)

Redemption at the end of the month

Interest earned

Balance at the end of the month (in ₹)





























































As we can see from the table, the total return earned from the entire investment = (Balance at the end of the 12th month + total amount withdrawn) - initial investment = ₹47,119.90 + ₹60,000 - ₹1,00,000 = ₹7,119.90

Things To Keep In Mind Before Investing In an SWP

  1. Adequate corpus: It is crucial to have a sufficient investment corpus to sustain regular withdrawals without depleting the principal too quickly.
  2. Portfolio allocation: Careful asset allocation is essential to balance generating income and preserving capital.
  3. Investment horizon: Investors should consider their investment time horizon and align it with the withdrawal frequency and amount to maintain a sustainable income stream.
  4. Market volatility: Fluctuations in the market can impact the overall returns and sustainability of SWPs. It is essential to assess the investment's risk tolerance and adjust withdrawal amounts accordingly.
  5. Professional advice: Seeking advice from a financial advisor can help tailor SWPs to individual financial goals and risk profiles.

What is an SWP Calculator?

A Systematic Withdrawal Plan (SWP) calculator is a financial tool designed to help investors estimate the potential outcomes of implementing a Systematic Withdrawal Plan strategy for their mutual fund investments. It allows individuals to assess the future value of their investments based on various parameters such as the initial investment amount, withdrawal per month, expected annual rate of return, and investment tenure.

By entering these key variables into the SWP calculator, investors can simulate different scenarios and obtain a projection of the total value of their mutual fund investment after the specified withdrawal period. This tool helps individuals determine the feasibility and sustainability of their chosen withdrawal strategy and assists in making informed decisions regarding their investment and income requirements during retirement or other financial goals.

How Does An Online SWP Calculator Help?

The Angel One SWP calculator takes into account factors such as compounding returns, the impact of regular withdrawals on the investment's principal, and the potential growth of the remaining invested amount. It provides users with a clear understanding of how their investments may fare over time and allows for adjustments to be made based on their financial objectives and risk tolerance.

The output from Angel One’s SWP calculator empowers investors to assess the viability of their withdrawal plans, adjust withdrawal amounts, tenure, or investment allocations if needed, and ensure that their investments can sustain their desired income stream over the long term.

It is important to note that while an online SWP calculator provides valuable insights, actual investment returns may vary due to market fluctuations and other factors. Therefore, it is important to consult with a financial advisor or professional to tailor the SWP strategy to individual financial goals and circumstances.

What is the SWP Calculator Formula?

The SWP calculator formula calculates the future value of mutual fund investments based on the total investment amount, withdrawal per month, expected annual rate of return, and tenure of the investment.

To break it down further, let's define the variables used in the formula:

  • Total Investment Amount: This refers to the initial amount of money you invest in the mutual fund
  • Withdrawal per Month: This is the amount of money you plan to withdraw from the investment each month.
  • Expected Annual Rate of Return: This indicates the rate of return you anticipate earning on your mutual fund investments annually. It is usually expressed as a percentage.
  • Tenure of the Investment: This represents the duration or length of time for which you plan to stay invested in the mutual fund.

While the specific formula may vary depending on the exact calculation method used in a particular online SWP calculator, a common approach is to calculate the future value of the mutual fund investments by applying the compound interest formula. Here's a generic representation of the formula:

A = PMT ((1+r/n)^nt – 1) / (r/n)

The calculates the future value of an investment given certain parameters. Here's a breakdown of the variables used in the formula:

A: Future value of the investment
PMT: Payment amount for each period (regular cash flow or withdrawal amount)
r: Expected rate of return per period (usually expressed as a decimal)
n: Number of compounding in a period
t: Number of periods the money is invested or the total duration of the investment

The formula calculates the future value (A) of an investment by taking into account the regular payments (PMT), the expected rate of return (r), the compounding frequency (n), and the investment duration (t).

How to Use an SWP Calculator?

To use the Angel One SWP calculator, simply visit the Angel One SWP calculator online and take the following steps:

  1. Enter the ‘Total Investment’ i.e. the total amount that you have invested initially.
  2. Enter the ‘Monthly Withdrawal’ ie. the amount that you will be withdrawing from your investment at the end of every month.
  3. The ‘Expected Return’ that you wish to gain annually. Note that the final return you actually receive will be less than this percentage value because you will be withdrawing from the investment amount periodically.
  4. Enter the duration of the investment under ‘Select Duration’.

Once you enter these details, on the right, the Angel One SWP calculator will show you the:

  1. ‘Invested Amount’ i.e. how much you had originally invested.
  2. ‘Total Withdrawal’ i.e. the accumulated value from the monthly withdrawals.
  3. ‘Final Value’ i.e. how much value remains within the investment at the end of the investment duration.

Benefits Of Using an Online SWP Calculator

  1. Accurate planning: A SWP calculator provides you with accurate calculations and projections regarding the future value of your mutual fund investments. It helps you understand the trade-offs between higher withdrawals and longer investment periods or vice versa. This information empowers you to make adjustments to your portfolio and choose a strategy that aligns with your financial objectives.
  2. Ease of use: You can easily enter the amount that you want to invest along with other details such as rate of return, withdrawal amount and duration to find out how much returns you will earn from a particular SWP investment. The Angel One SWP calculator will give you instant results.
  3. Free to use: The calculator is also available online and completely free, regardless of how many times you use it. You can access it anytime, from anywhere, as long as you have a device with internet connection.

Overall, using an online SWP calculator empowers you to make informed decisions, set realistic goals, and effectively plan your withdrawals from mutual fund investments. It provides a comprehensive analysis of your investment portfolio, helping you optimise your financial strategy and maximise the potential benefits of your investments.

SWP Calculator FAQs

What is an SWP calculator?

An SWP calculator is a tool that helps investors calculate and plan their systematic withdrawal plan (SWP). It takes into account parameters such as the total investment amount, withdrawal per period, expected rate of return, and investment tenure to provide projections of the future value of the investments.

How does an SWP calculator work?

An SWP calculator works by using mathematical formulas and algorithms to calculate the future value of mutual fund investments based on the input parameters. It typically considers the initial investment amount, withdrawal amount, compounding periods, expected rate of return, and investment duration to provide accurate calculations and projections.

Why should I use an SWP calculator?

Using an SWP calculator offers several benefits. It helps you accurately plan your withdrawals, set financial goals, make informed decisions, assess risks, evaluate different withdrawal scenarios, and optimize your investment strategy. It provides clarity and enables you to align your SWP with your specific financial needs and objectives.

Where can I find an SWP calculator?

You can find SWP calculators online on investment platforms like Angel One. These calculators are often available for free and provide a user-friendly interface to input the necessary parameters and obtain SWP calculations.

Can I trust the results from an SWP calculator?

SWP calculators are designed to provide accurate calculations based on the input parameters. However, they are tools meant to assist in financial planning, and the results should be used as guidelines. It's important to consider market fluctuations, changing investment conditions, and consult with a financial advisor to make well-informed decisions.

What are the disadvantages of SWP?

The following are some of the disadvantages of SWP:

  1. Averaged returns - Since you do not get to choose the time of the withdrawals and their amounts yourself, your investment’s returns get averaged over time.
  2. Exit load - If you withdraw from the investment plan too soon, then the fund house may charge you an exit load.

What are the major risks associated with SWP investments?

The major risk associated with SWP investments is the risk of a fall in the NAV of the mutual fund units due to a fall in the prices of the assets that the fund has invested in. This is because it may reduce the overall value of your investment.

Which SWP is the best for investing?

The returns from SWPs, among other factors such as volatility of the returns, the associated risk, the dividends earned, the tax saving features can help you choose the right SWP for you.

Can SWP help me save on taxes?

You can invest in an ELSS fund or Equity-linked Savings Scheme with SWP. It will help you save in taxes under section 80C of the Income Tax Act, 1961.

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