SWP Calculator - Systematic Withdrawal Plan Calculator

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Looking to generate regular income from your mutual fund investments? A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount at regular intervals while your remaining investment continues to grow. Our SWP Calculator helps you estimate how long your funds will last or how much you can withdraw, based on your investment amount, frequency, and expected returns. It’s a smart way to plan steady cash flow—especially post-retirement or during financial transitions.

What Is SWP Calculator?

The SWP Calculator helps you plan regular monthly withdrawals from your mutual fund investments while showing the remaining value of your investment over time. It’s an effective tool for estimating how long your money will last and what kind of steady income you can expect—making it especially useful for retirement planning. With an SWP, you can create a predictable cash flow without redeeming your entire investment at once.

How Does SWP Calculator Work?

The Systematic Withdrawal Plan (SWP) Calculator helps estimate regular cash flows from your mutual fund investment. It uses the formula:

A = PMT × [(1 + r/n)^(nt) – 1] / (r/n)

Where,

  • A = Future value of the investment
  • PMT = Withdrawal amount per period
  • r = Expected annual rate of return
  • n = Number of compounding periods per year
  • t = Investment period in years

Example Of SWP Calculator

Let us understand the working of SWP calculator with an example. Consider the following scenario: 

  • Initial Investment: ₹1,20,000
  • Monthly Withdrawal (PMT): ₹10,000
  • Withdrawal Tenure: 12 months (1 year)
  • Expected Annual Return (r): 7% or 0.07
  • Compounding Frequency (n): 12 (monthly)

Each month, the interest is calculated on the remaining balance, and the withdrawal is deducted.

Month 1:

Opening Balance: ₹1,20,000
Interest (7% annually / 12 months): ₹700 (approx)
Total before withdrawal: ₹1,20,700
Withdrawal: ₹10,000
Closing Balance: ₹1,10,700

Month 2:

Opening Balance: ₹1,10,700
Interest: ₹645.75 (approx)
Total before withdrawal: ₹1,11,345.75
Withdrawal: ₹10,000
Closing Balance: ₹1,01,345.75

…and so on, until the end of 12 months.

By the end of the tenure, the SWP Calculator provides a clear summary of your investment performance. It displays the total amount withdrawn over the selected period, the remaining corpus (if any) left in the mutual fund, and the total interest earned during the withdrawal phase. This helps investors assess how effectively their investment has supported regular cash flows while continuing to grow.

112000010000641.6666667110641.6667
2110641.666710000587.0763889101228.7431
3101228.743110000532.167667891760.91072
491760.9107210000476.938645982237.84937
582237.8493710000421.387454772659.23682
672659.2368210000365.512214863024.74904
763024.7490410000309.311036153334.06007
853334.0600710000252.782017143586.84209
943586.8420910000195.923245533782.76534
1033782.7653410000138.732797823921.49814
1123921.498141000081.2087391214002.70687
1214002.706871000023.349123434026.055998

You have a future value of Rs 4,026 as shown in the table.

How To Use Cleartax SWP Calculator?

The ClearTax SWP Calculator helps you to calculate the SWP mutual fund investment over a tenure:

  • Fill the total investment amount in mutual funds.
  • Enter the withdrawal per month from the mutual fund scheme
  • Add the expected rate of return.
  • Enter the investment tenure
  • The Cleartax SWP Calculator will display the total investment, total withdrawal, total interest earned, and the final value of the investment.

Benefits Of ClearTax SWP Calculator

Below mentioned are the benefits of using the Cleartax SWP calculator: 

  • Provides accurate estimates of monthly withdrawals from mutual fund investments
  • Shows how long your investment will last based on withdrawal amount and tenure
  • Calculates interest earned during the withdrawal period
  • Displays the remaining corpus after each withdrawal
  • Helps plan a steady post-retirement income or regular cash flow
  • Easy to use with simple input fields like investment amount, duration, and expected return
  • Offers a clear breakup of principal vs. earnings over time

The Cleartax SWP Calculator is a simple yet powerful tool to plan regular income from your mutual fund investments. It helps you estimate monthly withdrawals, track your remaining corpus, and understand interest earnings—making it an ideal solution for retirement planning or creating steady cash flows.

Frequently Asked Questions

How does the ClearTax SWP Calculator help you?

The ClearTax SWP Calculator shows you the monthly withdrawals from the SWP. You can calculate the regular income you want every month. Any surplus amounts may be invested depending on your financial goals and risk tolerance. It also shows you the final value of your investment. You may use the ClearTax SWP Calculator, to calculate the amount you can withdraw from mutual funds and generate a second income.

Is the ClearTax SWP Calculator easy to use?

Yes, the ClearTax SWP Calculator is a handy easy-to-use utility tool. You can calculate the amount you want to withdraw every month from the mutual fund scheme. It may be used from the comfort of your home or anywhere.

How does the ClearTax SWP Calculator help you to save taxes?

The SWP is a tax-efficient tool for retirees to earn a regular income. It may also be used for multiple purposes such as children’s higher education or a foreign vacation. The ClearTax SWP Calculator helps you to enjoy the tax benefit on long-term capital gains above Rs 1 lakh in a financial year, for equity-oriented funds.

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

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