SWP Calculator

What Is SWP Calculator?

An SWP (Systematic Withdrawal Plan) Calculator is a tool that helps you estimate how much money you can withdraw regularly from your mutual fund investment, while still earning returns on the remaining amount.

How Does SWP Calculator Work?

An SWP (Systematic Withdrawal Plan) Calculator works by computing how long your investment will last or what your regular withdrawal amount can be, based on your input values such as:
 

• Initial investment (lump sum)

• Monthly withdrawal amount

• Expected annual return (%)

• Time period (optional)

SWP Formula
 

SWP is based on the concept of compound interest with periodic withdrawals. The formula used is:

A=P×(1+r)n−(W×[(1+r)n−1r]) 
 

Where:
 

• A = Amount left after n months

• P = Initial investment

• W = Monthly withdrawal

• r= Monthly return rate (Annual Rate ÷ 12 ÷ 100)

• n = Number of months

Example
 

Let’s assume:
 

• Initial Investment (P) = ₹10,00,000

• Monthly Withdrawal (W) = ₹10,000

• Expected Annual Return = 8% → Monthly rate r=812×100=0.00667

• Tenure (n) = 5 years = 60 months
   

Now calculate how much money remains or how long it will last. For simplicity, we’ll give an estimated outcome:

Estimated Output
 

• After 5 years, you would have withdrawn: ₹10,000 × 60 = ₹6,00,000

• Approximate interest earned: ₹2,33,000

• Remaining balance: ₹6,33,000
   

So, despite withdrawing ₹6 lakhs, your corpus only reduces by ~₹3.67 lakhs due to the compounding growth.

How can a SWP return calculator help you?

• Estimates Regular Withdrawals – Know how much you can withdraw monthly or yearly from your mutual fund.

• Projects Corpus Longevity – See how long your investment will last be based on withdrawal and return rate.

• Customizable – Try different scenarios by adjusting amount, rate, and tenure.

• Visualizes Fund Growth – Tracks remaining balance after each withdrawal, factoring in compounding.

How to Use Tata Moneyfy’s SWP Calculator

1. 1. Enter Your Initial Investment
   Input the lump-sum amount you’ve invested in mutual funds.
    

2. 2. Choose Withdrawal Frequency & Amount
   Select how often you want withdrawals (monthly, quarterly, annually) and set the amount.
    

3. 3. Set Expected Rate of Return
   Enter your anticipated annual rate of return (e.g., 8%) based on your fund type.
    

4. 4. Define the Tenure
   Specify how long you want the withdrawals to continue (e.g., 5 years).
    

5. 5. Click “Calculate”
   The tool will process the data and project:

   • Number of withdrawals possible

   • Total amount withdrawn vs. corpus remaining

   • Interest earned over the period
      

6. Review the Results
See a detailed schedule showing withdrawal amounts, fund balance, and growth over time.

Advantages of Using Tata Moneyfy SWP Calculator

1. Plan Consistent Withdrawals – Helps you schedule regular monthly or quarterly payouts from your mutual fund investments.

2. Estimate Investment Lifespan – Calculates how long your funds will last based on your withdrawal strategy and expected returns.

3. Track Corpus & Growth – Gives a clear view of your fund balance and interest earned over time.

4. Explore Flexible Scenarios – Adjust inputs to compare different withdrawal and return options.

5. Supports Retirement Goals – Perfect for building a steady income stream during retirement without exhausting your savings too quickly.